Pantheon raised $3.25 billion for its latest secondaries fund, which is the firm’s largest to date and blends traditional LP secondaries with GP-led secondaries opportunities.
Pantheon Global Secondaries Fund VII (PGSF VII) is focused on the middle market and attracted a great deal of capital from private wealth clients. The close well above the firm’s $2 billion target also highlights the fact that liquidity demands of both investors and managers are driving increased deal flow and attractive pricing for secondaries investors. Commitments also came from the AMG Pantheon Fund, the firm’s first U.S. registered fund launched in 2022.
“The secondaries market continues to evolve and present a growing range of compelling investment opportunities,” said Amyn Hassanally, partner and global head of private equity secondaries at Pantheon in New York. “We believe Pantheon’s scale, investment capacity and specialist expertise, combined with the global reach enabled by our broader private equity platform and deep industry relationships, positions us to capitalize on the opportunities we are seeing in the market and deliver strong risk-adjusted returns for our investors.”
So far, PGSF VII has put to work approximately 60% of total commitments raised, including more than 50% of commitments to the core commingled fund. This translates to a $2 billion portfolio, with over $1.2 billion in dry powder still to be deployed into an attractive market environment.
Last month, the $62 billion Pantheon announced its registration filing for an evergreen private credit fund anchored in private credit secondaries.
The firm’s private equity secondaries strategy dates back to 1988. The blending of LP and GP-led secondaries allows the program to capture potential discounts and early distributions that are typically associated with secondaries as well as the premium returns associated with more concentrated GP-led investments, officials said. The risk mitigation benefits available via secondaries is another plus as there is more visibility on mature underlying portfolio assets as well as in backing an existing manager and value creation plan, according to Pantheon.