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14 May 2013 07:00
PANTHEON INTERNATIONAL PARTICIPATIONS PLC - Interim Management StatementPANTHEON INTERNATIONAL PARTICIPATIONS PLC - Interim Management Statement
PR Newswire
London, May 13
13th May 2013
Pantheon International Participations PLC Interim Management Statement (Unaudited) for the Quarter Ended 31st March 2013Pantheon International Participations PLC ("PIP" or the "Company") presents itsinterim management statement for the period from 1st January 2013 to 31st March2013. This constitutes the Company's second interim management statement in thefinancial year ending 30th June 2013, as required by the UK Listing Authority'sDisclosure and Transparency Rule 4.3.
The Company published an unaudited Net Asset Value ("NAV") as at 31st March2013 on 22nd April 2013. This interim management statement summarises theinformation as at 31st March 2013 and any further developments up to 10th May2013.
Investment Objective PIP's primary investment objective is to maximise capital growth by investingin a diversified portfolio of private equity funds and, occasionally, directlyin private companies. General Information 31/03/2013 31/12/2012 Change NAV per share 1,293.0p 1,206.3p 7.2% Ordinary share price 1,075.0p 882.5p 21.8% Redeemable share price 1,032.5p 865.0p 19.4% Net asset value £884m £831m 6.4% Outstanding commitments £189m £183m 3.3% PerformanceThe NAV per share at 31st March 2013 was 1,293.0p, representing an increase of86.7p, or 7.2%, relative to the NAV per share at 31st December 2012.
Portfolio gains, mainly from the buyout segment of the portfolio, added 13.2pper share in the quarter.
Foreign exchange gains increased NAV per share by 72.6p per share. During thequarter the Company invested £4.9m (at market value) buying back shares forcancellation. These buybacks resulted in an uplift to NAV per share ofapproximately 2.5p. Expenses and interest, net of income, reduced NAV per shareby 1.6p.
The Company's ordinary share price increased during the quarter by 21.8% to1,075.0p, whilst the price of its redeemable shares increased by 19.4% to1,032.5p at 31st March 2013. Subsequent to the quarter end, up until the marketclose on 10th May 2013, the share price of the ordinary and redeemable sharesdecreased to 1,045.0p and 1,030.0p respectively.
Portfolio Cash Flow
PIP's portfolio generated positive net cash of £34.8m in the quarter before thecost of new commitments. Distributions amounted to £43.0m and calls fromexisting commitments totalled £8.2m.
Distributions in the quarter included:
* £4.4m in relation to the highly profitable sale of stock received from the initial public offering of operational intelligence software provider Splunk. * £1.8m from Equistone Partners Europe, mainly relating to the sale of packaging manufacturer Paragon Print and Packaging to Sun European Partners at a cost multiple of 2.2 times and fluid control equipment manufacturer Hydrasun Holdings to Investcorp at a cost multiple of 2.6 times. * £1.4m from Bain Capital, mainly relating to the sale of shares in HCA Healthcare and the debt re-financing of HD Supply which, taking into account any unrealised holdings, have generated cost multiples of 4.4 times and 3.7 times respectively. * £1.0m was received from Nova Capital as the final instalment from the disposal of Carbolite at a 3.5 times cost multiple.New Commitments
For its new private equity investments, the Company has continued to emphasisesecondary transactions, supplemented with co-investments alongside leadingprivate equity managers selected by Pantheon. PIP made a total of £26.3m newcommitments in the quarter, which consisted of the following:
* A secondary commitment of £10.4m to an Asian mid-market fund, that was approximately 90% funded at completion. * A secondary commitment of £10.1m to two large buyout funds based in the USA that, on an aggregated basis, were approximately 50% funded at completion. * A co-investment of £2.1m in a telecommunications equipment firm in the USA. * A co-investment of £2.0m to a US-based domestic bank. * A co-investment of £1.7m to a specialist insurance business in the USA.The pipeline of investment activity is likely to lead to the completion offurther transactions in the coming quarter.
Share Buybacks
During the quarter, PIP bought back for cancellation 550,000 redeemable sharesat a price of 890p per share. This transaction was executed at a discount ofapproximately 26% to the 31st December 2012 NAV per share.
In total, from August 2011, when the Company started buying back shares, up to31st March 2013, it has acquired, for investment purposes, approximately 9.5%of its outstanding shares. The value of these buybacks amounted to £52.6m, or26% of the net cash flow generated from the portfolio between 30th June 2011and 31st March 2013.
Additionally, after the quarter end PIP bought back for cancellation 130,000ordinary shares at a price of 1,033p per share, which represented a discount ofapproximately 20% to the 31st March 2013 NAV per share.
The Board expects the Company's mature portfolio to remain cash generative andcontinues to believe that share buybacks are an effective means of enhancingNAV per share as an alternative to new investments when the Company's sharesare trading at a wide discount.
Cash Balance and Remaining Facilities
As at 31st March 2013, PIP had cash balances equivalent to a total ofapproximately £83m.
In addition, the Company's multi-currency revolving credit facility agreement("the Bank Loan Facility"), comprising an $82m US dollar facility and a €57meuro facility, was completely undrawn. The Bank Loan Facility expires in June2015.
Based on exchange rates at 31st March 2013, PIP's total available liquidfinancing capacity, comprising its cash and bank facility, stood at £185m.
Undrawn Commitments
Undrawn commitments to investments stood at £189m at 31st March 2013,calculated using exchange rates at that date. Drawdowns of undrawn commitmentstypically occur over a period of several years.
Historical Total Return Performance to 31st March 2013¹
Since 1 Year 3 Years 5 Years 10 Years Inception % % p.a. % p.a. % p.a. % p.a. NAV per share 13.4% 11.6% 3.4% 9.1% 11.5% Ordinary share price 38.5% 25.9% 4.9% 10.4% 11.2% FTSE All-Share Total Return 16.8% 8.8% 6.7% 10.7% 8.1% MSCI World (sterling) Total 18.4% 9.1% 8.5% 9.9% 7.0%Return¹PIP was launched on 18th September 1987. The performance figures for PIPassume reinvestment of dividends, capital repayments and cash flow fromwarrants.
ValuationsPIP's valuation policy for private equity funds is based on the latest accountsproduced by the managers of the funds in which PIP has holdings. In the case ofthe valuation as at 31st March 2013, the majority of valuations (accounting forcirca 88% by value) are dated 31st December 2012. Private equity funds maycontain a proportion of quoted shares from time to time, for example where theunderlying company investments have been taken public but the holdings have notyet been sold. The quoted market holdings at the date of the latest fundaccounts are reviewed and compared with the value of those holdings at the yearend. If there has been a material movement in the value of these holdings, thevaluation is adjusted to reflect this.
Foreign Exchange Exposure
At 31st March 2013, the value of the private equity investment assets stood at£806m. Of the private equity investment assets at PIP's holding level, 70% wererepresented by funds reporting values denominated in US dollars, 22%denominated in euros, 7% denominated in sterling and 1% denominated in othercurrencies. Of the 70% of investment assets denominated in US dollars,approximately 6% (expressed as a proportion of PIP's total portfolio) areinvested in funds investing mainly in Europe and approximately 14% (expressedas a proportion of PIP's total portfolio) in funds investing mainly in Asia. Inaddition to the funds reporting values denominated in sterling, many of theeuro-denominated funds have investments in the UK.
Other than as described in the paragraphs above the Board is not aware of anyevents during the period from 31st March 2013 to the date of this statementwhich would have a material impact on the financial position of the Company.
Tom Bartlam Chairman13th May 2013The views, information and data in this announcement should not be deemed as afinancial promotion or recommendation. Shareholders are advised that thisstatement is unaudited.
ENDSFor more information please visit PIP's website at www.pipplc.com or contact:
Andrew Lebus or Alexis BarlingPantheon020 7484 6200Neither the contents of the Company's website nor the contents of any websiteaccessible from hyperlinks on the Company's website (or any other website) isincorporated into, or forms part of this announcement.