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Pantheon International PLC

Pantheon International Plc Performance Update at 31 May 2019

Pantheon International Plc (LON: PIN) has today provided a performance update for the 31 May 2019.

Highlights

2,770.6p NAV per share

+6.5% NAV per share growth for the month

£1.5bn Net asset value

£17.4m Net portfolio cash flow*

3.4x Financing cover**

+95% Total shareholder return (5Y)***

Month to 31 May 2019

Pantheon International Plc announced an unaudited net asset value per share at 31 May 2019 of 2,770.6p, an increase of 169.7p (+6.5%) from the NAV per share as at 30 April 2019. Valuation gains* (89.8p, +3.5%), investment income* (0.7p, +0.0%) and foreign exchange movements* (+82.9p, +3.1%) were offset by expenses and taxes**** (-3.7p, -0.1%).

PIP’s valuation policy for private equity funds is based on the latest valuations reported by the managers of the funds in which PIP has holdings. In the case of PIP’s valuation as at 31 May 2019, 96% of reported valuations are dated 31 March 2019 or later. A detailed description of PIP’s valuation policy can be found on pages 92 and 93 of the 2018 Annual Report.

At 31 May 2019, PIP’s private equity assets stood at £1,450m, whilst net available cash balances^ were £141m. The Asset Linked Note^^ outstanding as at 31 May 2019 amounted to £92m. Undrawn commitments to investments stood at £521m as at 31 May 2019, calculated using exchange rates at that date. PIP’s multi-currency revolving credit facilities comprise a US$163.0m facility and a €59.8m facility, which remained undrawn as at the month end.

PIP’s portfolio generated net cash* of £17.4m during the month, with distributions of £28.7m relative to £11.3m of calls from existing commitments to private equity funds.

PIP made £53.7m new commitments during the month across three primaries (£45.8m) and two secondaries (£7.9m). This included: a £23.8m primary commitment to Advent Global Private Equity IX, a large buyout fund with a global focus; a £20.5m primary commitment to Searchlight Capital III, a global special situations fund; and a £5.4m secondary direct investment in a US terminal and ports operator.

*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.

Year to 31 May 2019

Performance

The unaudited NAV per share at 31 May 2019 of 2,770.6p is an increase of 355.8p (+14.7%) relative to the NAV per share as at 31 May 2018. Valuation gains* (266.4p, +11.0%), investment income* (19.7p, +0.8%), foreign exchange movements* (+107.9p, +4.5%) and share buybacks (0.3p, +0.0%) were partially offset by expenses and taxes**** (-38.5p, -1.6%).

Portfolio Net Cash Flow

PIP’s portfolio generated net cash* of £169.8m during the year, with distributions of £276.5m relative to £106.7m of calls from existing commitments to private equity funds.

New Commitments

PIP made 59 new investments during the year to 31 May 2019, amounting to £340.7m in commitments. This included 13 secondary investments (£104.9m), 20 primary investments (£159.8m) and 26 co-investments (£76.0m).

Performance as at 31 May 2019^^^

 1 Year(%)3 Years(% pa)5 Years(% pa)10 Years(% pa)Since Inception(% pa)
NAV per share14.7%16.8%14.9%11.2%11.9%
Ordinary share price10.7%19.6%14.3%18.9%11.5%
FTSE All-Share TR-3.2%8.7%5.3%9.6%7.7%
MSCI World (£) TR2.5%13.8%11.8%13.0%7.8%

^^^PIP was launched on 18 September 1987. The performance figures for PIP assume reinvestment of dividends, capital repayments and cash flow from warrants.

Largest Holdings

Largest managers by value as at 31 May 2019

 Region% of portfolio
1 ProvidenceUSA6.1%
2 Venture FundµUSA4.0%
3 Essex WoodlandsUSA3.7%
4 Barings Private Equity AsiaAsia and EM2.9%
5 Energy Minerals GroupUSA2.8%

Largest companies by value as at 31 May 2019µµ

 Country Sector % of portfolio
1 EUSA PharmaUKHealthcare1.8%
2 Tug HillUSAEnergy1.7%
3 Energy CompanyµUSAEnergy1.4%
4 Abacus Data SystemsUSAIT1.2%
5 Dermatology CompanyµUSAHealthcare1.1%

µConfidential

µµBased on valuations as at 31 March 2019 adjusted for known calls and distributions to 31 May 2019, and accounts for over 98% of PIP’s portfolio.

Foreign Exchange Exposure

At 31 May 2019, the value of the private equity investment assets stood at £1,450m. Of the private equity investment assets at PIP’s holding level, 79% were represented by funds reporting values denominated in US dollars, 17% denominated in euros, 3% denominated in sterling and 1% denominated in other currencies. Of the 79% of investment assets denominated in US dollars, approximately 9% (expressed as a proportion of PIP’s total portfolio) are invested in funds investing mainly in Europe and approximately 9% (expressed as a proportion of PIP’s total portfolio) in funds investing mainly in Asia. In addition to the funds reporting values denominated in sterling, many of the euro-denominated funds have investments in the UK.

Monthly Report

The May monthly newsletter can be accessed on PIP’s website at www.piplc.com in the Investor Relations section under the heading “Newsletters”.