Proactive, responsible, long-term performance.
Pantheon International Plc
Annual Report and Accounts 2021
Contents
Strategic Report
At a glance
Why choose us?
Chairman's statement
Q&A with John Burgess and John Singer Our business model
Our strategy
Key performance indicators Responsible investment and ESG Financing our undrawn commitments Risk management and principal risks s172(1) statement
Viability statement Investment policy
Manager's Review
Performance
Portfolio
Our market
Sector themes
Distributions
Calls
New commitments
Buyout analysis
Other information
Key Pantheon personnel supporting PIP
At a glance as at 31 May 2021
04 | Directors' Report | 82 | 31.7% | in the year | ||
01 | Governance | 78 | Share price | |||
02 | Board of Directors | 80 | ||||
increase | ||||||
10 | Statement on Corporate Governance | 86 | ||||
14 | Audit Committee Report | 92 | Market | |||
18 | Directors' Remuneration report | 95 | £1.5bn capitalisation | |||
20 | Directors' Responsibility Statement | 99 | ||||
19.6% | ||||||
24 | Independent Auditor's Report to the | NAV per | ||||
26 | Members of Pantheon International Plc | 100 | share growth | |||
32 | Financial Statements | 106 | in the year | |||
+11.8% annual NAV | ||||||
40 | ||||||
34 | Income Statement | 108 | ||||
Average | ||||||
38 | ||||||
Statement of Changes in Equity | 109 | |||||
41 | Balance Sheet | 110 | growth since | |||
Cash Flow Statement | 111 | £1.9bn | 1987 | |||
46 | Notes to the Financial Statements | 112 | value | |||
42 | ||||||
44 | Other Information | 128 | Net asset | |||
AIFMD Disclosures | 130 | |||||
47 | 1.22% | AIC ongoing | ||||
Alternative Performance Measures | 132 | |||||
50 | ||||||
Glossary of Terms | 136 | 1 | ||||
54 | charges | |||||
Directors and Advisers | 138 | |||||
62 | ||||||
63 Retail investors advised by independent financial advisers
- The Company currently conducts its affairs so that its shares can be recommended by
- independent financial advisers to retail private investors in accordance with the FCA's rules
76 in relation to non-mainstream investment products.
The shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in a UK-listed investment trust.
Strategic Report | Manager's Review | Governance | Financial Statements | Other Information | 01 |
About PIP
PIP makes the private, public
Pantheon International Plc ("PIP" or the "Company") is a listed FTSE 250 private equity investment trust, overseen by an independent Board of Directors and managed by Pantheon, one of the leading private equity investment managers globally.
Firms backed by private equity are all around us, making up a dynamic and growing market. For many people, this exciting sector can appear to be inaccessible. But with just one PIP share, investors can access a high quality, actively managed and diversified portfolio of private equity assets.
Pantheon's responsible, transparent and collegiate culture is one of the reasons why PIP has such an outstanding 33-year track record. It is also down to having the right skills, experience and relationships built up over many years. We believe that taking a long-term and ethical view leads to better outcomes, whatever is going on in the world.
Privileged access to exciting companies
Imperfect Foods | Signature Foods | ZeniMax Media | ||||||||||
p.30 | p.56 | p.59 | ||||||||||
Sandaya | NAMSA | |||||||
p.53 | p.68 | |||||||
- Including financing costs, PIP's total ongoing charges would be 1.43%.
02 Pantheon International Plc Annual Report and Accounts 2021
At a glance
A straightforward investment, managed with integrity
Strategic Report | Manager's Review | Governance | Financial Statements | Other Information | 03 |
Privileged access to the right companies
The dispersion of performance between managers in private equity | Pantheon, which has been in business for almost four decades, |
is much wider than in other asset classes. Therefore, selecting | has an extensive network of relationships with private equity |
and accessing the best private equity managers with robust | managers across the world, including invitation-only funds, |
organisations, proven operational and sector expertise, and a | exclusive secondary deals and co-investments with direct |
sustainable investment strategy is key to achieving success. | holdings in attractive private companies. |
PIP
PIP is managed by Pantheon, | ||
Shareholders | one of the leading private equity | |
investors in the world. | ||
Invest via LSE | Supervises | |
PIP | PIP Board | Pantheon |
Manages
Putting shareholders first
PIP has an independent board that looks after shareholders' interests, with rigorous systems and processes applied to ensure that the relationship with Pantheon is effective and beneficial.
As part of this, the Board of PIP monitors Pantheon's investment strategy to ensure that it is relevant, adheres to the Company's investment policy, and is constructed around seeking the best performing assets worldwide that can generate attractive returns over the long term.
Pantheon
Founded in London in 1982, Pantheon
serves an institutional client base...
US$65.9bn1 680+
Assets Under Management | clients around |
the world | |
Award-winning3 |
Pantheon has a strong reputation for responsible investing and diversity…
Gender diversity4 | Ethnic diversity4 | ||
Overall | Investment | Overall workforce6 | |
workforce5 | team heads | ||
41% | 43% | 33% | |
Women | Non-white ethnic | ||
Pantheon provides clients with access to its global network of relationships…
DUBLIN | BERLIN | |||
9 | ||||
1 | SEOUL | |||
LONDON | 3 | |||
SAN | NEW | |||
277 | TOKYO | |||
FRANCISCO | YORK | |||
36 | 40 | people | 5 | |
HONG | ||||
KONG | ||||
BOGOTÁ | 9 | |||
4 |
Why PIP's structure works
background |
9 3832
1132 | >4852 | 10,000 |
For the most part, capital in the private equity industry is managed in non-listed structures, typically limited partnerships. Investors wishing to invest directly in a private equity fund are often expected to lock up their capital for at least ten years and many private equity firms only accept high minimum commitments to their funds from selected investors. Shares in a listed private equity investment trust, such as PIP, give investors ready access to private equity opportunities.
14
years of UNPRI7 membership, one of the first private
A+
awarded to Pantheon for private equity by
offices people
c. | ||
investment professionals | advisory board | private equity managers |
with an aggregate of over | seats held | in Pantheon's database |
1,000 years' financial | ||
services experience |
For just one share, investors can participate in an actively managed, globally diversified private equity portfolio. Investors can also benefit from the administrative simplicity and liquidity obtained from being able to buy and sell shares trading on a recognised stock exchange. In addition, the capital gains that arise are retained within the investment trust structure, and are not subject to corporation tax.
equity signatories
the UNPRI in 2020
1 | As at 31 December 2020. | 4 | The response rate for our voluntary survey in December 2020 - January 2021 was 73%, |
2 | As at 30 June 2021. | compared to our 68% response rate in the prior annual survey. | |
3 | See the Award Methodologies section on Pantheon's website for details regarding | 5 | c.1% prefer not to say. |
the awards mentioned above: www.pantheon.com. | 6 | c.2% prefer not to say. | |
7 | United Nations Principles for Responsible Investment. |
04 Pantheon International Plc Annual Report and Accounts 2021
WHY CHOOSE US?
Our time-tested culture leads to
LONG-TERM PERFORMANCE
Strategic Report | Manager's Review | Governance | Financial Statements | Other Information | 05 |
We think long term, make the right choices and deliver results
strong outcomes
Private equity is the term used for privately negotiated investments typically made in non-public companies. It can be an attractive asset class for a broad range of investors as it can boost the performance of their investment portfolios. But barriers to entry are high and doing it well requires experience and expertise.
PIP is a FTSE 250 company and one of the longest established private equity funds listed on the London Stock Exchange.
Our long-term track record speaks for itself: PIP has outperformed the FTSE All-Share and MSCI World since its inception in 1987.
Long-term performance
Thinking long term, making the right choices and delivering results
Proactive
A carefully diversified and actively managed portfolio designed to perform well in a range of conditions
Responsible investment
A thoughtful ESG approach informs every decision we make
Annualised performance | Since | |||||||||||||||||||
1 yr | 3 yrs | 5 yrs | 10 yrs | |||||||||||||||||
inception | ||||||||||||||||||||
NAV per share | 19.6% | 12.6% | 14.7% | 12.6% | 11.8% | |||||||||||||||
Ordinary share price | 31.7% | 10.6% | 15.9% | 13.4% | 11.4% | |||||||||||||||
FTSE All-Share, Total Return | 23.1% | 1.9% | 7.0% | 6.3% | 7.5% | |||||||||||||||
MSCI World, Total Return (Sterling) | 37.6% | 14.9% | 16.8% | 13.3% | 8.6% | |||||||||||||||
Share price vs. market performance | Since | |||||||||||||||||||
1 yr | 3 yrs | 5 yrs | 10 yrs | |||||||||||||||||
inception | ||||||||||||||||||||
Versus FTSE All-Share, Total Return | +8.6% | +8.7% | +8.9% | +7.1% | +3.9% | |||||||||||||||
Versus MSCI World, Total Return (Sterling) | (5.9%) | (4.3%) | (0.9%) | +0.1% | +2.8% | |||||||||||||||
Performance since inception (re-basedto 100) | ||||||||||||||||||||
5,000 | ||||||||||||||||||||
4,000 | ||||||||||||||||||||
3,000 | ||||||||||||||||||||
2,000 | ||||||||||||||||||||
1,000 | ||||||||||||||||||||
0 | 99 00 01 02 03 04 05 06 07 08 09 10 | |||||||||||||||||||
87 88 89 | 90 | 91 | 92 | 93 | 94 | 95 | 96 | 97 | 98 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 19 20 21 | |||
PIP FINANCIAL YEAR | ||||||||||||||||||||
NAV | PIP OrdinaryShare Price | MSCI World Total Return (Sterling) | FTSE All-Share Total Return |
06 Pantheon International Plc Annual Report and Accounts 2021
Why choose us?
PROACTIVE | Our carefully diversified and |
actively managed portfolio is | |
designed to perform well in | |
a range of conditions | |
Deliberate choices have been made to position PIP for the future.
PIP's portfolio is carefully stewarded and has been | PIP's co-investment and single asset secondary |
actively managed to increase concentration, invest | programmes, focus investment activity on mid-market |
in more direct company holdings, allocate further to | and growth opportunities and increase exposure |
promising industry segments and reduce the maturity | to more resilient sectors. This active and flexible |
profile. We have made conscious decisions to expand | management style underpins PIP's performance. |
Active portfolio management | |||||||||||||||
By type | By stage | By vintage | By region | By sector | |||||||||||
100% | |||||||||||||||
80% | |||||||||||||||
60% | |||||||||||||||
40% | |||||||||||||||
20% | |||||||||||||||
0% | Jun | May | May | Jun | May | May | Jun | May | May | Jun | May | May | Jun | May | May |
15 | 18 | 21 | 15 | 18 | 21 | 15 | 18 | 21 | 15 | 18 | 21 | 15 | 18 | 21 |
Primary | Small/mid buyout | 0-3 years | USA | Information technology | |||||||
Co-investment | Large/mega | 4-7 years | Europe | Healthcare | |||||||
Secondary | buyout | 8+ years | Asia and EM1 | Consumer | |||||||
Growth | Global2 | Industrials | |||||||||
Special situations | Financials | ||||||||||
Venture | Communication services | ||||||||||
Generalist | Energy | ||||||||||
Materials | |||||||||||
Utilities | |||||||||||
Strategic Report | Manager's Review | Governance | Financial Statements | Other Information | 07 |
Pantheon, which has been in business for almost four decades, has an extensive network of relationships with private equity managers across the world, including invitation-only funds, exclusive secondary deals and co-investments with direct
Portfolio concentration is increasing3
OF MANAGERS | 90 | ||
60 | |||
30 | |||
NUMBER | |||
0 | Jun 15 | May 21 | |
COMPANIES | 800 | ||
600 | |||
400 | |||
OF | |||
NUMBER | 200 | ||
0 | |||
Jun 15 | May 21 | ||
holdings in attractive private companies.
HELEN STEERS | |
PIP Lead Manager. | |
Partner | NAMSA |
- EM: Emerging Markets.
- Global category contains funds with no target allocation to any particular region equal to or exceeding 60%.
- Number of managers and portfolio companies comprising 80% of PIP's total exposure. Exposure is equivalent to the sum of the NAV and undrawn commitments.
p.68 |
Attachments
- Original document
- Permalink
Disclaimer
Pantheon International plc published this content on 05 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2021 08:15:07 UTC.