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Pantheon gathers $834m for sophomore senior debt fund

Pantheon has closed its second senior debt fund at $834 million, beating its initial $500 million target.

Pantheon has closed its second senior debt fund at $834 million, beating its initial $500 million target. Pantheon Senior Debt II USD is focused on senior private debt secondary investments. Pantheon’s private debt business, which also includes primary fund investment and co-investment strategies, now has $4.7 billion in assets under management, according to the firm.

PRESS RELEASE

Pantheon, a leading global private markets investor, is delighted to announce the final close of Pantheon Senior Debt II USD (PSD II), our flagship global fund dedicated to senior private debt secondary investment opportunities, on $834m, substantially in excess of the initial target of $500m.

With this close Pantheon’s total capital dedicated to private debt secondary investing has passed $2.4bn, positioning the firm as an industry leader in a rapidly evolving segment that is increasingly in demand as a liquidity solution for both investors and credit fund managers. Pantheon estimates, based on our own deal sourcing, suggest that global private debt secondary deal flow reached a record $18.4bn in 2021i – and our experience suggests that this will continue to expand.

Pantheon’s private debt secondary programs invest across the full credit spectrum, from senior to more opportunistic credit, including both LP and GP-initiated liquidity solutions, and on behalf of a global base of institutional and private wealth investors across the US, Europe and Asia, with a range of flexible investment structures.

“We are pleased with the continued growth and expansion of our leadership position in private credit secondaries, and these recent closings establish Pantheon as one of the largest scale providers of secondary-focused credit liquidity solutions globally,” said Rakesh (“Rick”) Jain, Global Head of Private Debt at Pantheon.

Mr. Jain continued: “We will continue to leverage our expertise in credit secondaries to capitalize on the growing range of compelling and often complex opportunities in this space, and to evolve our investment capabilities to meet the needs of our clients worldwide. We see increasing investor interest in credit secondaries, due to the benefits of highly invested portfolios, high levels of diversification across company, industry, strategy and vintage year, attractive credit metrics, and shorter durations than what they might experience with other private credit investment alternatives.”

Paul Ward, Managing Partner at Pantheon, said: “Pantheon has invested in private debt for 25 years, and since the launch of our dedicated strategy in 2018 our global team of specialists has built a premier franchise in private debt secondary investing globally.”

Mr. Ward added: “This development is a key element in our broader and ongoing strategic evolution as a global leader in private market investing, with deep experience and a proven track record across all asset classes and stages, including as a first mover in secondaries across private equity, global infrastructure and private debt.”

In aggregate, Pantheon’s private debt business, which also includes primary fund investment and co-investment strategies, now has $4.7bn in assets under management or adviceii, including more than $3.4bn in new capital raisediii since it was launched as a dedicated strategy in 2018 as an extension of our established secondaries capabilities.

Pantheon has invested in private equity secondaries since 1988 and in infrastructure secondaries since 2009, with a combined total of $22.7bn committed to both LP- and GP-led secondary transactions across private equity, infrastructure and private debtiv.