Pantheon announced that its private credit secondaries portfolio hit $3 billion in value as the close of its latest offering secured $590 million from investors.
The fundraise includes a $390 million in commitments to a commingled fund and another $200 million was raised for a discretionary secondary credit opportunistic co-investment account.
Pantheon Credit Opportunities Fund II program (PCO II) will invest in secondary investment in high-quality credit portfolios, primarily in the U.S. and with a focus on downside protection, targeting a mix of both senior strategies and assets, as well as opportunistic exposures including special situations, growth lending, and specialty- and asset-backed finance.
The secondaries program currently has exposure to approximately 1,500 companies and more than 30 private credit managers.
Building on a well-established program
The close of this offering follows the above-target close of the $92.8 billion firm’s senior credit-focused Pantheon Senior Debt II USD program in 2022.
“We are excited to have closed our latest private credit secondary offering and are grateful to our clients for their continued support and growing interest in these strategies,” said Rakesh “Rick” Jain, global head of private credit at Pantheon. “PCO II is another successful milestone in the development of our credit secondary solutions business. As a first mover in credit secondaries, we will continue to leverage our sale, leadership position, credit expertise and partnership approach with GPs to capitalize on the increasing demand for private credit liquidity solutions.”
Growing deal flow
Pantheon said that private secondaries deal flow reached a new high of $22 billion last year, which is up from $5.5 billion in 2018.
Last year for its part, Pantheon’s team committed a record total of $1.7 billion across 27 transactions in Europe and North America. These were alongside more than 30 fund managers with roughly 70% sourced proprietarily from Pantheon’s extensive network of relationships across the global private credit market.