Case study

Introducing PIP to the private placement market in debut issuance

12 Mar 2024 . 3 min read

Making the private, public

Pantheon International Plc (PIP) is a FTSE 250 investment trust with a highly diversified portfolio and a strong track record of long-term market outperformance [1]. Since its inception in 1987, PIP has become one of the longest established private equity companies listed on the London Stock Exchange [2] and has outperformed the FTSE All-Share and MSCI World [3].

With US$62 billion in discretionary assets under management (as at 30 September 2023), and a team of 128 investment professionals globally (as at 31 December 2023), Pantheon has a strong track record of investing in private equity-backed companies and funds over various market cycles in the primary, secondary and co-investment markets.

PIP raises $150 million in highly oversubscribed transaction

Having historically relied predominantly on bank financing, PIP sought to diversify its funding base through a debut private placement issuance. This would not only provide the opportunity to diversify its lender base and lengthen its maturity profile, but also benefit from the positive pricing dynamics on offer for this format when compared to bank debt.

With NatWest appointed as Joint Agent, PIP held investor meetings in London and across the United States to meet one-to-one with key accounts. The meetings allowed PIP to explain in detail the diverse nature of its portfolio, its investment approach, and its strong historical performance. This personal effort with investors paid off: demand for the transaction was very strong, leading to an oversubscribed orderbook which allowed PIP to tighten pricing.

The deal was ultimately placed with five investors, with PIP printing $150 million and spreading the issuance across 5-year, 7-year, and 10-year tranches to minimise its refinancing risk.

The transaction represents the first time NatWest have seen an investment trust with private equity as the underlying assets access the market, and the strong result for PIP indicates there is demand for more issuers of PIP’s nature in the private placement market.

NatWest plays key role supporting PIP’s private placement issuance

Robert Busby, Managing Director, Private Placements at NatWest, said: “We are delighted to have been able to support PIP with their debut private placement. This transaction showcases the benefits of the private placement market for issuers seeking to diversify their funding platform and also demonstrates the significant liquidity available in the market for high quality financial issuers like PIP.”

Parin Avari, Director, RBSI, said: “PIP is one of the first listed Private Equity focused trusts we have seen to access the Private Placement market, demonstrating access to alternative funding sources and long-term debt. Having also supported on its Revolving Credit Facility, PIP is an excellent example of NatWest Group’s capability to provide holistic solutions to Investment Trusts and Funds.”

1: Source: PIP 2023 Annual report, Page 9

2. Source: londonstockexchange.com

3: Source: piplc.com

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