Andrew Lebus, managing partner at Pantheon Ventures, highlights a value opportunity among private-equity trusts.
His own £890 million Pantheon International Participations fund trades at a discount of 17% to its net asset value, with the sector as a whole on an average discount of 13%. This is despite discounts across the closed-ended world being at one of their tightest ever levels.
It is also despite private equity in general enjoying a particularly fecund spell, as holdings have been sold into a rampant IPO market – particularly benefiting Pantheon’s mature portfolio.
The trust invests in other private equity funds globally, and in the current environment is focusing on the secondary market – buying from those who have ‘lost a bit of interest’, says Lebus.
Pantheon International Participations has returned 49% over the past three years, compared with a peer-group average of 35%.