Pantheon International Participations, the London-listed investment trust managed by fund-of-funds manager Pantheon Ventures, is to raise up to £100 million to finance more secondary deals.
PIP will raise the money through a placement of ordinary shares, which will be priced at a slight premium to net asset value – currently estimated at about £8.77 per share. It is looking to step up its purchase of secondary fund interests, while using its existing assets to fund primary deals.
The fundraising reflects the fact that the trust is currently putting its money to work at a record pace – it invested £281 million in the nine months to the end of March 2007, incorporating primary and secondary deals, and expects to invest more than £700 million more over the next couple of years.
PIP managing partner Andrew Lebus said: “It is our intention to grow PIP over the next few years to meet demand from institutions and private investors for access to the asset class outside – and, in some cases, alongside – the Limited Partnership route.”
At 14:39 BST, PIP shares were trading at £9.17, down 1.45 percent.
PIP already has nearly £500 million of assets under management, making it one of the biggest PEITs in the FTSE’s investment trust sector. Launched in 1987, it is also the oldest private equity fund of funds listed on the London Stock Exchange.
In total there are 21 PEITs quoted on the LSE, with a combined asset value of about £10 billion. PEITs, which allow retail investors to access the private equity asset class, out-performed the stock market in 2006. The average share price of the sector as a whole has increased by 14.8 percent during the last year, outperforming the FTSE All Share Index by 3.7 percent, according to iPEIT, the Initiative for Private Equity Trusts.
PIP’s parent Pantheon Ventures has £17 billion under management and investments in more than 700 private equity funds. Founded in 1982, the firm has offices in London, San Francisco, Hong Kong and Brussels.