Pantheon International Plc · LSE:PIN
Pantheon International — AMG Pantheon Credit Solutions Fund (P-SECC) — Investor Presentation (December 2024)
22 slides from Pantheon International's investor presentation, December 2024
Slide 1: AMG Pantheon Credit Solutions Fund (P-SECC)
PRIVATE WEALTH AMG PANTHEON CREDIT SOLUTIONS FUND (P-SECC) December 2024
Slide 2: Why do investors allocate to Private Credit?
Why do investors allocate to Private Credit? Large & growing market with potentially attractive yield and total returns 1 2 3 4 5 Opportunities for Private Credit Direct lending Floating rate Opportunities in investors have has offered an has proven to be exposure helps Private Credit increased attr
Slide 3: Benefits of Pantheon's private credit secondary approach
Benefits of Pantheon’s private credit secondary approach Potential premium absolute and risk-adjusted returns Traditional private credit fund Pantheon private credit secondaries • 9% discount for senior strategies2 Discount • None; OID of 1.5% - 3.0% ✓ • Potential for day 1 investment uplift, capita
Slide 4: Why invest in private credit secondaries now?
Why invest in private credit secondaries now? Consistent, growing deal flow with attractive pricing dynamics Pantheon’s credit secondary deal flow1 Pantheon’s historic private credit discounts2 0% $40 $36.0 $36 -5% -8.3% -8.6% -8.6% -10.1% $32 -10% -11.6% Market Volatility $28 Effective Discount to
Slide 5: Discounts in secondaries provide a potential buffer against defaults
Discounts in secondaries provide a potential buffer to protect investors from defaults | Illustrative example: Net IRR sensitivity to defaults in private credit funds 15.0% 10.0% Traditional PC fund return with 0% Net IRR defaults 5.0% GFC default levels reached ~11% for <2 years 0.0% 0.0% 2.0% 4.0%
Slide 6: Pantheon is a leader in the market for private credit secondaries
Pantheon is a leader in the market for private credit secondaries $9.2bn $6.3bn 2018 Capital raised1 Committed / Invested Pantheon launched first since 20182 dedicated private credit secondaries fund ~5,000 143 92 Underlying companies3 Investments Diversified number of GP since 20182 relationships2
Slide 7: Principles by which we invest
Principles by which we invest Pantheon’s investment philosophy underpinned by our partnership approach Don’t simply buy the manager based on reputation Identifying embedded value Seek to mitigate downside with multiple ways to “win” Embrace complexity and leverage our experience to solve pro
Slide 8: P-SECC seeks to solve for key issues in other private credit offerings
P-SECC seeks to solve for key issues in other private credit offerings Challenge P-SECC solution Most funds are managed by a single sponsor. To Diversification across: Diversification achieve optimal diversification, investors should Manager Vintage consider investing across multiple managers.
Slide 9: P-SECC portfolio overview
P-SECC portfolio overview Fund Overview Fund Highlights • P-SECC provides investors with exposure to a diversified Private • Core Private Credit exposure through a single allocation Credit portfolio sourced by Pantheon's dedicated Private Credit team. • Access to Private Credit deal flow from Panthe
Slide 10: P-SECC investment strategy
P-SECC investment strategy What are we looking for and what do we offer? Transaction profile1 P-SECC investment attributes2 Investment size $10 - $400m+ Embedded value Effective discount Target portfolios (LP/GP) Short duration of 2 – 4 years Macro / Senior Diversified Non Structural Stable >10 GP
Slide 11: P-SECC investment philosophy
P-SECC investment philosophy Be selective, partner with quality, intensive diligence, informed decisions Focus on Detailed Knowledge Team quality1 underwriting2 advantage2 experience4 • High quality managers, the • Rigorous due diligence • Focus on proprietary • Highly selective decision- majority o
Slide 12: P-SECC key terms
P-SECC key terms Structure Interval fund available for daily purchase with ticker PCSJX Investor Accredited Investors2 qualifications Minimum I share class: $50,000 investment Tax reporting 1099-DIV1 Management fee3 I share class: 1.15% (50bp annual fee waiver in place through May 2025) Performance
Slide 13: P-SECC performance
P-SECC performance As of 12/31/20241 Since Incpt. (%) 10.00 9.22 9.00 8.00 7.00 6.00 5.00 4.72 4.00 3.00 2.00 1.00 0.00 P-SECC Morningstar LSTA US Leveraged Loan Share Class Since Incpt. (%)2 Nav.($) Class I 9.22 $10.61 Morningstar LSTA US Leveraged Loan 4.72 Past performance is not indicative of fu
Slide 14: Project Mug
Project Mug Proprietary sale of a single LP interest in a US-focused senior fund Overview Portfolio and key highlights2 Type LP liquidity solution ✓ Diversified senior portfolio 15% Seller US Endowment 24% 4% ✓ GP with a proven track Pantheon Exposure $48.6m 5% record 7% 11% Closed December 2024 8%
Slide 15: Project Cub
Project Cub LP trade for a direct lending fund focused on 1L loans to sponsor-backed UMM companies Overview Portfolio and key highlights1 Type LP Liquidity Solution ✓ Diversified senior 7% portfolio of funded credits 4% Seller US Endowment 4% 28% 9% ✓ High-quality, blue-chip Pantheon Exposure $101m
Slide 16: Appendix
APPENDIX
Slide 17: Disclosure – case studies
Disclosure 1 – case studies These case studies are examples of specific private transactions made by Pantheon funds / clients and are designed to assist prospective investors / clients to understand Pantheon’s investment management style / strategy. It should NOT be regarded as a recommendation. Pan
Slide 18: 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 visit https://wealth.amg.com/resources/order-literature/ for a prospectus. Read it carefully before investing or se
Slide 19: Disclosures and general risks (continued)
Disclosures and general risks (continued) Investment program risks THE FUND’S PROSPECTUS PROVIDES A MORE COMPLETE DISCUSSION OF THE RISKS SUMMARIZED BELOW • The Fund’s performance depends upon the performance of the Investment Fund managers and selected strategies, the adherence by such Investment F
Slide 20: Disclosures and general risks (continued)
Disclosures and general risks (continued) Investment program risks (continued) • The Fund, and many of the investments held by the Investment Funds, will be priced in the absence of a readily available market and may be priced based on determinations of fair value, which may prove to be inaccurate.
Slide 21: Disclosures and general risks (continued)
Disclosures and general risks (continued) Investment program risks (continued) • Fund investors will have no right to receive information about the Investment Funds or Investment Fund managers, and will have no recourse against Investment Funds or their Investment Fund managers. • The Fund intends t
Slide 22: Disclosures and general risks (continued)
Disclosures and general risks (continued) PLEASE SEE THE PROSPECTUS FOR A MORE COMPLETE DISCUSSION OF THE RISKS ASSOCIATED WITH INVESTING IN PRIVATE CREDIT AND ADDITIONAL SPECIFIC RISKS RELATING TO SECONDARY INVESTMENTS, DIRECT LOANS AND DIRECT LENDING RISK Any statements regarding market events, fu
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