TIDMPIN
RNS Number : 3996L
Pantheon International PLC
30 April 2020
30 April 2020
For immediate release
The information contained in this announcement is restricted and
is not for publication, release or distribution in the United
States of America, Canada, Australia (other than to persons who are
both wholesale clients and professional or sophisticated investors
in Australia), Japan, the Republic of South Africa or any other
jurisdiction where its release, publication or distribution is or
may be unlawful.
Pantheon International Plc
("PIP" or the "Company")
Performance Update at 31 March 2020
and
Further statement by the Board and Manager on the impact of the
COVID-19 crisis and the Manager's Provision relating to the March
NAV
Highlights
2,794.9p NAV per share
-3.8% NAV per share movement for the month
GBP1.5bn Net asset value
-GBP12.2m Net portfolio cash flow*
3.2x Financing cover**
+24% Total shareholder return (5Y)***
Month to 31 March 2020
PIP announced an unaudited net asset value ("NAV") per share as
at 31 March 2020 of 2,794.9p, a decrease of 111.8p (-3.8%) from the
NAV per share as at 29 February 2020. As described in the joint
statement by the Board and Manager below, the NAV as at 31 March
2020 includes a provision by the Manager ("the Manager's Provision"
or "the Provision") relating to the impact of the COVID-19 crisis.
As at 31 March 2020, valuation gains* were 30.4p (+1.0%),
investment income* added 1.7p (+0.1%), the Manager's Provision was
-226.3p (-7.8%), foreign exchange movements* added 86.1p (+2.9%),
and expenses and taxes**** were -3.7p (-0.1%).
At 31 March 2020, net of the Manager's Provision, PIP's private
equity assets stood at GBP1,461m, whilst net available cash
balances^ were GBP116m. The Asset Linked Note^^ ("ALN") outstanding
as at 31 March 2020 amounted to GBP65m. Undrawn commitments to
investments stood at GBP548m as at 31 March 2020, calculated using
exchange rates at that date. PIP's multi-currency revolving credit
facilities comprise a US$163.0m facility and a EUR59.8m facility,
which remained undrawn as at the month end.
PIP made 14 new investments during the month amounting to
GBP67.8m of new commitments. This included an GBP17.5m primary
commitment to Hg Genesis 9, a European mid-market buyout fund with
a technology focus; a GBP10.7m primary commitment to Index Ventures
Growth V, a European growth equity fund; and an GBP11.1m secondary
commitment to an Australian buyout fund portfolio.
*Figures are stated net of movements associated with the ALN
share of the reference portfolio.
**Ratio of net available cash, portfolio value and undrawn loan
facility to outstanding commitments.
***Based on the change in the ordinary share price over the
period.
****Withholding taxes on investment distributions.
^Net available cash calculated as cash and net current assets /
(liabilities) less undistributed net cashflows associated with the
ALN.
^^Unlisted 10-year note issued on 31 October 2017 whose cost and
repayments are linked to a reference portfolio consisting of the
Company's older vintage funds.
Performance as at 31 March 2020^^^
1 Year 3 Years 5 Years 10 Years Since Inception
(%) (% pa) (% pa) (% pa) (% pa)
NAV TR per share 7.5% 9.0% 12.1% 11.6% 11.6%
Ordinary share price (20.4%) (0.8%) 4.5% 12.0% 10.4%
FTSE All-Share TR (18.5%) (4.2%) 0.6% 4.4% 6.9%
MSCI World (GBP)
TR (9.1%) 1.3% 6.7% 8.9% 7.4%
^^^PIP was launched on 18 September 1987. The performance
figures for PIP assume reinvestment of dividends, capital
repayments and cash flow from warrants.
Further statement by the Board of PIP and its Manager, Pantheon,
on the COVID-19 crisis and the Manager's Provision relating to the
March NAV
Pantheon continues to be in close contact with the underlying
managers in PIP's portfolio and is encouraged by their detailed and
structured responses as they endeavour to assess both the
short-term impact of the situation and the longer-term
implications. These communications have covered a range of topics
including the operational impact on each underlying portfolio
company (including site closures and personnel affected);
disruption to supply chains; impact on demand, bookings and
revenue; access to applicable government programmes; funding
requirements; financing and cash positions, and any potential
breaches to banking covenants. Many managers are applying a
"traffic light" system of grouping portfolio companies into "low
impact", "medium impact" and "high impact" categories. Sector and
geography play a large part in this exercise: companies operating
in sectors such as information technology, for example, are
currently generally classified as low impact while businesses in
segments such as consumer discretionary, or operating in certain
virus "hotspots", fall into a high impact category. This is a fluid
and unpredictable situation, and it is still difficult to evaluate
the full extent of the impact of COVID-19 on PIP's portfolio,
however the Board remains reassured that the majority of PIP's
diversified portfolio is tilted towards more resilient industry
sectors such as information technology and healthcare. The Board
and the Manager continue to be confident that our managers are
working hard to preserve value and ensure the best possible
outcomes for their portfolio companies, which are long-term
investments, as well as for the investors in their funds.
PIP's reported net asset value at any month end is based
principally on the latest valuations received by the Company from
its underlying managers, subject to adjustments made to convert
foreign currency holdings at the prevailing exchange rates on the
month end reporting date. In the case of the Company's NAV as at 31
March 2020, the majority (94%) of underlying valuations reported by
our managers reflected valuations as at 31 December 2019. Clearly
since that date, the COVID-19 pandemic has caused significant
economic disruption globally and volatility in asset prices.
Therefore, in order to give investors as meaningful an assessment
as is possible at this stage of the potential impact of the crisis
on PIP's NAV, Pantheon has made the Manager's Provision, taking a
proactive and prudent approach when valuing the Company's assets as
at 31 March 2020.
Through its ongoing and detailed conversations with PIP's
private equity managers, Pantheon was able to obtain guidance from
a large majority - those managing 71% by value of PIP's underlying
portfolio - on the impact of the economic and market turmoil on the
value of their portfolio companies as at 31 March 2020. As a
result, the Manager's Provision has been made against the reported
valuations of the funds in PIP's portfolio to reflect those
managers' provisional assessments of the impact of the COVID-19
pandemic on their portfolios. The small proportion of the portfolio
that consists of publicly listed investments has also been adjusted
to reflect the closing share prices at the end of March, for
frequently traded positions. In the case of investments where
guidance has not been provided, Pantheon has used its proprietary
portfolio modelling tool to make an adjustment. This analytical
tool uses the GICS^^^^ Level 1 classifications of the Company's
underlying portfolio companies to apply the relevant sectoral index
movement within the appropriate regional MSCI index between 31
December 2019 and 31 March 2020. The aggregate of this movement has
then been modified by a blended adjustment factor that takes
account of Pantheon's observations of the co-relationship between
public market index movements and the aggregate movements in the
value of its private equity assets based on a comprehensive
analysis of these co-relationships seen during the Global Financial
Crisis. In aggregate, these adjustments account for the Provision
which has reduced the reported NAV as at 31 March 2020 by a total
of GBP122m amounting to 226.3 pence per share. Pantheon will
continue to monitor developments closely and, as further
information relating to valuations as at 31 March 2020 and
subsequent quarters is received, these will be reflected in the
future announcements of monthly NAVs.
PIP continues to have a healthy net cash position (GBP116m as at
31 March 2020) and unutilised credit facilities amounting to
US$163.0m and EUR59.8m committed until June 2022. Its carefully
controlled level of undrawn commitments relative to NAV and
available liquidity to meet calls, all of which has been stress
tested by the Manager over the past several years, means that the
Company can continue to meet calls from underlying funds even
during periods of market disruption. Furthermore, we are backing
experienced and operationally focused private equity managers who
have managed portfolios through various macroeconomic cycles, and
who have carefully considered the use of debt in their investee
companies, many of which have covenant-lite structures in
place.
The Board recognises that the ongoing market impact of the
crisis, which has been reflected in PIP's share price and across
the wider listed private equity sector, is creating uncertainty for
shareholders. However, we continue to have conviction in the
private equity market, which is long term and flexible in nature,
and the Manager's ability to manage PIP through this crisis.
We are committed to sharing as much information as possible, as
and when we can, and the team at Pantheon remains available to
investors to answer any questions. They can be contacted using the
details below.
^^^^GICS: Global Industry Classification Standard
Monthly Report
The March monthly newsletter can be accessed on PIP's website at
www.piplc.com in the Investor Relations section under the heading
"Newsletters".
This announcement contains inside information.
Ends
LEI: 2138001B3CE5S5PEE928
For more information please visit PIP's website at www.piplc.com
or contact:
Pantheon
Helen Steers / Andrew Lebus / Vicki Bradley
020 3356 1800
NOTES
PIP
PIP 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. PIP offers investors a liquid, differentiated entry point
to the excellent growth potential of global private equity, with
access to the primary, secondary and co-investment opportunities of
some of the best managers in the world. The Company has a track
record of outperformance and manages risk through diversification
and rigorous selection based on Pantheon's extensive experience and
international platform.
Pantheon
Pantheon is a leading global private equity, infrastructure,
real assets and debt fund investor that invests on behalf of over
550 investors. Founded in 1982, Pantheon has developed an
established reputation in primary, co-investment and secondary
private asset solutions across all stages and geographies. Pantheon
has $47.1 billion in AUM^^ (as at 30 September 2019) and 330
employees (as at 31 March 2020), including 99 investment
professionals, located across offices in London, San Francisco, New
York, Hong Kong, Seoul, Bogotá, Tokyo and Dublin.
^^ This figure includes assets subject to discretionary or
non-discretionary management, advice or those limited to a
reporting function.
Important Information
A copy of this announcement will be available on the Company's
website at www.piplc.com . Neither the content of the Company's
website, nor the content on any website accessible from hyperlinks
on its website for any other website, is incorporated into, or
forms part of, this announcement nor, unless previously published
by means of a recognised information service, should any such
content be relied upon in reaching a decision as to whether or not
to acquire, continue to hold, or dispose of, securities in the
Company.
Sir Laurie Magnus
Chairman, Pantheon International Plc
Beaufort House, 51 New North Road, Exeter, Devon, EX4 4EP
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END
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