Pantheon International Plc · LSE:PIN
Pantheon International — AMG Pantheon Fund — Investor Presentation (August 2023)
39 slides from Pantheon International's investor presentation, August 2023
Slide 1: AMG Pantheon Fund
AMG Pantheon Fund August 2023 Pantheon Ventures (US) , LP, 555 California Street Suite 3450 San Francisco, CA 94104 PRIVATE & CONFIDENTIAL PRIVATE & CONFIDENTIAL
Slide 2: Private Equity Introduction
Private Equity Introduction
Slide 3: Why do investors allocate to private equity?
Why do investors allocate to private equity? 1 2 3 4 Many sophisticated investors Access to maintain allocations to private Potential for Potential for opportunities equity in an effort to enhance enhanced Diversification volatility unavailable in investment returns and to add returns reduction publ
Slide 4: Significant investor opportunities in private enterprises
Significant investor opportunities in private enterprises 7,042,866 Private companies in A large universe of private the U.S1 companies in the U.S. may represent significant opportunity Private for private equity managers. To companies in the U.S., 50+ 1,869,149 access the full breadth of the U.S. e
Slide 5: There has been a significant reduction of publicly listed stocks
There has been a significant reduction of publicly listed stocks North American and European companies1 Private vs. Public PE-backed Publicly traded 20,884 21,275 14,484 Number of companies 13,738 13,898 13,634 13,594 14,216 13,367 12,396 12,362 13,599 12,318 12,203 12,492 10,404 11,087 12,234 9,017
Slide 6: The characteristics of the public market have changed over the last two decades
The characteristics of the public market have changed over the last two decades Median age for tech IPOs Median market value, at first Value creation is market price, for tech IPOs increasingly 12 years $3.05b shifting from public to private markets. 5 years Companies are $702m coming to market late
Slide 7: AMG Pantheon Fund has historically provided outperformance with less volatility versus MSCI World Index
AMG Pantheon Fund has historically provided outperformance with less volatility versus MSCI World Index Hypothetical $1m portfolio over the past 5 years* AMG Pantheon Fund (Class 1) MSCI World $2,000,000 $1,900,000 12.95% $1,800,000 $1,700,000 $1,600,000 5yr – AMG Pantheon Fund1 $1,500,000 $1,400,00
Slide 8: AMG Pantheon Fund
AMG Pantheon Fund
Slide 9: Investing in private equity for 40+ years
Investing in private equity for 40+ years Pantheon at a glance Pantheon Offices Pantheon provides access to unique deal flow from top private equity sponsors globally 1982 London We focus on small and medium size buyouts and growth equity 2007 2014 New York 2021 alongside sector specialists 2022 Ber
Slide 10: Building a diversified private equity portfolio
Building a diversified private equity portfolio Vintage – The first year a private equity fund makes a portfolio company investment Sector – Industry sectors Portfolio Geography – Global regions Diversification within a private equity portfolio takes into account: Manager – Investment managers (Gene
Slide 11: Private Equity returns by stage and geography
Private Equity returns by stage and geography Diversification matters Ranking of median net IRR by stage and geography for each vintage year Top performing Bottom performing Source: Preqin, as of December 31, 2021. Diversification does not assure a profit or protect against loss in a declining marke
Slide 12: AMG Pantheon Fund aims to alleviate challenges with PE investing
AMG Pantheon Fund aims to alleviate challenges with PE investing Meeting Long Diversification J-curve target Capital calls lock-ups allocation Challenge: Challenge: Challenge: Challenge: Challenge: To achieve proper Negative flows—and Given long commitment Each new investment A well-established Priv
Slide 13: AMG Pantheon Fund overview and highlights
AMG Pantheon Fund Fund Overview Fund Highlights AMG Pantheon Fund provides Accredited Investors exposure to a Core private equity portfolio in a single allocation diversified private equity portfolio sourced by Pantheon’s Global Access to deal flow from Pantheon’s platform of co-investment, In
Slide 14: Private equity portfolio characteristics
Private equity portfolio characteristics AMG Pantheon Primaries, 6% Co-Investments, 41% Fund blends Committing capital to a Directly investing into private equity fund at its portfolio companies secondaries, inception to gain alongside private equity co-investments, exposure to privately held co
Slide 15: Why access private equity through secondaries?
Why access private equity through secondaries? Primary Investment Period Secondary Investment Period Secondary investments may Initial Investment Period Reduce blind pool risk have several Capital contributions Transition from investing stage to harvesting stage advantages Blind pool risk
Slide 16: What differentiates Pantheon's secondary approach?
What differentiates Pantheon’s secondary approach? 40+ year track record investing in private equity Pantheon $65.4 billion private equity assets under management and advice1 platform Average annual deployment of ~$4 billion across PE primaries, co-investments and secondaries2 Pantheon holds
Slide 17: Pantheon's platform provides a potential sourcing advantage
Pantheon’s platform provides a potential sourcing advantage 2010 – H1 2023 LP vs GP-Led deal funnel1 Strong 30+ year relationships provide sourcing advantage2 Traditional LP GP-Led $542.3 bn $343.8 bn Screened 2,532 deals 1,023 deals Avg. length Avg. deployed Avg. # of deals / $67.4 bn $48.2 bn of r
Slide 18: Experience buying positions in leading, high quality General Partners
Experience buying positions in leading, high quality General Partners Leveraging our broad platform to access top quality GPs1 Transaction Type Stage2 Geography3 Single Asset GP-Led Small Buyout Medium Buyout North America Traditional LP Deals Growth Equity Other Europe Asia & Australasia Pantheon o
Slide 19: Why invest in private equity secondaries now
Why invest in private equity secondaries now Most attractive buyout fund pricing in a decade Historical buyout fund pricing and Pantheon’s Q1 2023 pricing1 Par 100% 97% 97% 96% 95% 99% 94% 95% 93% 91% 89% 90% Buyout Fund Pricing 84% 85% 75– 85%2 80% 75% 70% 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 20: Accessing Private Equity through Co-Investments
Accessing Private Equity through Co-Investments What is a Co-Investment? ✓ Equity investment directly into an operating company ✓ Investment generally made alongside a private equity fund that is contributing capital to the transaction Benefits of Co-Investing Access to Long-standing relationships w
Slide 21: What differentiates Pantheon's co-investment approach?
What differentiates Pantheon’s co-investment approach? 40 year track record investing in private equity Pantheon $65.4 billion private equity assets under management and advice1 platform Average annual deployment of ~$4 billion across PE primaries, co-investments and secondaries2 Pantheon ho
Slide 22: Invest alongside leading GPs where we have deep relationships
Invest alongside leading GPs where we have deep relationships First Advisory Board Deals Large PE Primary Investor in High Conviction GPs1 GP Region Primary Member3 Shown4 $47.1bn private equity primary assets under management 2000 Europe ✓ 33 and advice 2000 Europe ✓ 24 ~136 core primary GPs target
Slide 23: Finding value in the current market
Finding value in the current market Attractive pricing in deals with greater operational complexity Complex deals at GP partner is key given dependence on their ability to execute attractive pricing Upside potential on exit multiple Seek deals with high probability of near-term M&A Near-term
Slide 24: AMG Pantheon Fund: Differentiated access to Private Equity
AMG Pantheon Fund: Differentiated access to Private Equity 35+ year history of managing listed evergreen private equity fund, Pantheon Significant evergreen International PLC experience 8+ years of managing the AMG Pantheon Fund First investment made in 2014 229 investments in current portfo
Slide 25: Fund Terms & Performance
Fund Terms & Performance AMG Pantheon Fund
Slide 26: AMG Pantheon Fund terms & fees
AMG Pantheon Fund terms & fees Terms Fees4 Tax reporting 1099 DIV1 Asset-based fee Class 1: 1.45% Investor qualifications Accredited Investors2 Incentive fee None Minimum investment Class 1: $50,000 Capital calls None Subscriptions Monthly Valuations Monthly Liquidity Quarterly 3 Advisors Pantheon V
Slide 27: AMG Pantheon Fund performance (as of 8/31/2023)
AMG Pantheon Fund performance (as of 8/31/2023)1 MTD (%) QTD (%) YTD (%) 1Yr (%) 3Yr (%) 5Yr (%) Since Incpt. (%) 20 16.11 16.91 15.60 15 12.95 12.51 11.00 9.29 9.40 10 8.41 8.33 5 1.91 0.55 0.89 0 -5 -2.39 Share Class MTD (%) QTD (%) YTD (%) 1Yr (%) 3Yr (%) 5Yr (%) Since Incpt. (%)2 Nav.($) Class 1
Slide 28: AMG Pantheon Fund performance (as of 6/30/2023)
AMG Pantheon Fund performance (as of 6/30/2023)1 MTD (%) QTD (%) YTD (%) 1Yr (%) 3Yr (%) 5Yr (%) Since Incpt. (%) 25 18.51 19.32 20 15.09 15 13.35 12.53 12.18 11.19 9.07 9.49 10 7.24 6.05 6.83 5 3.32 1.04 0 Share Class MTD (%) QTD (%) YTD (%) 1Yr (%) 3Yr (%) 5Yr (%) Since Incpt. (%)2 Nav.($) Class 1
Slide 29: AMG Pantheon Fund monthly and calendar year performance
AMG Pantheon Fund monthly and calendar year performance1,2 (as of 8/31/2023) Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2015 – – – – – – – – – 1.38% 0.00% 0.10% 1.48% 2016 -0.68% -0.20% 0.69% 0.00% 0.20% 0.00% 0.29% 0.29% -0.10% -0.48% 1.85% 0.10% 1.95% 2017 0.00% 1.24% 1.04% 0.00% 8.
Slide 30: Top 10 Private Equity Managers in AMG Pantheon Fund
Top 10 Private Equity Managers in AMG Pantheon Fund Number of positions in AMG Private Equity Manager1 % of NAV2 Pantheon Fund Geography 7 Co-investments Insight Venture Partners 8.52% North America 6 Secondaries 3 Co-investments Altamont Capital Partners 4.33% North America 2 Secondaries Five Arrow
Slide 31: Top 10 Private Equity Managers in AMG Pantheon Fund
Top 10 Private Equity Managers in AMG Pantheon Fund Number of positions in AMG Private Equity Manager1 % of NAV2 Pantheon Fund Geography Hg Capital 2.08% 6 Co-investments North America 2 Co-investments BC Partners 1.94% Europe 1 Primary GHO Capital 1.89% 1 Secondary Europe Deutsche Private Equity 1.
Slide 32: Appendix
Appendix
Slide 33: Disclosures and general risks
Disclosures and general risks Investors should carefully consider the Fund’s investment objectives, risks, charges and expenses before investing. For this and other information, please call 1-877-355-1566 or visit www.pantheon.com/our-strategies/amg-pantheon-fund/ for a prospectus. Read it carefully
Slide 34: Disclosures and general risks (continued)
Disclosures and general risks (continued) Underlying funds will not be registered as investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”), and the Master Fund’s investments in underlying funds will not benefit from the protections of the 1940 Act. The value of t
Slide 35: Disclosures and general risks (continued)
Disclosures and general risks (continued) Investment program risks (continued) • Each of the Fund and the Master Fund intend to qualify as a Regulated Investment Company (“RIC”) under the Internal Revenue Code, but may be subject to income tax liability if it fails so to qualify. • Due to the nature
Slide 36: Disclosures and general risks (continued)
Disclosures and general risks (continued) Investment program risks (continued) • The performance of a fund may be substantially adversely affected by a single investment. Private fund investments are less transparent than public investments and private fund investors are afforded fewer regulatory pr
Slide 37: Description of commonly used indices
Description of commonly used indices Description of commonly used indices This list may not represent all indices used in this material. Pantheon does not attest to or verify the accuracy of the underlying data sourced from these indices and databases. MSCI World Index is a free float‐adjusted marke
Slide 38: Description of commonly used indices (continued)
Description of commonly used indices (continued) Description of commonly used indices This list may not represent all indices used in this material. Pantheon does not attest to or verify the accuracy of the underlying data sourced from these indices and databases. Cambridge Associates Private Invest
Slide 39: Definitions
Definitions Buyout: Funds that acquire controlling interests in companies with a view towards later selling those companies or taking them public. Co-investment: Portfolio company investments alongside a private equity fund. Infrastructure (Core Plus): Funds that generally invest in long-term assets
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