Private markets giant Pantheon announced its registration filing for an evergreen private credit fund anchored in private credit secondaries.
The AMG Pantheon Credit Solutions Fund (PSECC) expands Pantheon’s longtime partnership with AMG to provide private markets access to the adviser community, which already includes the $2.3 billon AMG Pantheon Fund — one of the largest private equity funds registered in the U.S.
Pantheon said PSECC will build a diverse portfolio of private credit investments that aim to offer risk-adjusted total returns and an attractive income stream. The fund seeks to profit from several key strengths of secondary investing, including the potential for attractive discounts that can enhance returns and mitigate against potential defaults, as well as greater diversification, shorter durations and more immediate distributions compared to private credit alternatives, officials said.
“We are excited about extending our position in private credit secondary solutions to this important and growing client channel,” said Rakesh (Rick) Jain, Pantheon partner and global head of private credit. “We see a strong opportunity for investors to capitalize on the supply-demand imbalance of capital and expertise in this space, similar to the evolution of secondaries across private equity, infrastructure and real assets.”
Since 1988, Pantheon has been investing in private markets and launched the world’s first dedicated fund in credit secondaries in 2018. The firm has more than $3 billion in client assets are dedicated to these secondaries. Pantheon has nearly $7 billion in private credit overall and a total of $93 billion in AUM.
Pantheon closed its latest credit secondaries fund in May with $590 million. The fund, Pantheon Credit Opportunities Fund II program (PCO II), invests in secondaries in high-quality credit portfolios, primarily in the U.S. and with a focus on downside protection, targets a mix of both senior strategies and assets, as well as opportunistic exposures including special situations, growth lending, and specialty- and asset-backed finance.
“We have heard from the private wealth community that demand for private credit funds is increasingly focused on addressing concerns around inflation, rising rates, credit defaults and the continued need for enhanced income,” said Michael Hutten, Pantheon partner and head of U.S. private wealth, which has an evergreen platform that totals $5.8 billion. “We believe the unique combination of diversification, income and total returns in private credit secondaries offers a compelling, differentiated allocation solution for investors.”
