Helen Steers, Partner and Manager of PIN, joined Hardman & Co for an open forum discussion about the role of private equity (PE), and PIN, in financing entrepreneurship, innovation and growth.
We discussed why PE increasingly has become the preferred financier for growth companies, and why they are choosing to stay private for longer. We explored how PE-backed companies are investing in tech-enabled businesses and companies benefitting from digitalisation disruption across multiple sectors, with many niche sub-sectors underrepresented or zero-represented on public markets. We reviewed the valued added by the expertise PE provides and how it works in practice, its impact on society and the investment opportunities these trends are creating.
The wide-ranging Q&A session covered these areas and realisations, ESG in PE, PIN’s asset selection, NAV and discount philosophies and long-term outperformance.
The investment objective of Pantheon International plc (PIN) is to maximise capital growth. With almost half of the portfolio now consisting of direct investments into private companies, and the remaining half invested in top-tier, hard-to-access funds, PIN offers investors a focused, but global, opportunity to capture the best PE opportunities wherever they arise in the world, while still having a diversified portfolio. The recent strong results show the benefits, with the NAV per share growing 22% in the six months to 30 November 2021. Portfolio valuation gains of 19.7% were achieved, with gains seen across all regions and investment strategies. The weighted average uplift from fully realised exits was 43%, and the average cost multiple was 3.3x. Over the past ten years the NAV has grown by 13.9% p.a., roughly double the FTSE All-Share, Total Return.