Pantheon has a long history of investing in infrastructure assets through our private equity managers. Our infrastructure programme provides incremental diversification through a multi-strategy approach which combines exposure to secondaries, co-investments and primaries.
As a pioneer of the private equity fund of funds market, Pantheon has a proven history in selecting high quality private equity managers as well as completing secondary transactions and co-investments. The infrastructure team is able to apply this expertise in this evolving asset class.
The strategy for Pantheon’s infrastructure programme is focused on secondaries and co-investment with the aim of generating superior returns with strong downside protection. As for our private equity funds, diversification is a key component to Pantheon’s approach to building portfolios of infrastructure investments. We diversify by:
> Investment Type
Pantheon’s strategy targets secondary investments and select co-investment opportunities, offering the potential to diversify investments into prior vintage years and select the best co-investment opportunities in the current market. This strategy is supplemented by the selective commitment to primary fund interests on a strategic basis.> Manager
We focus on managers with a range of investment styles and strategies. In addition to Core Plus managers that apply a value enhancement or activist investment approach, we also target Core managers by targeting a combination of managers, Pantheon aims to create an attractive mix of yield and growth opportunity.> Industry Sector
We target a range of industry sectors including but not limited to energy, transport, communication, water and social infrastructure.
> Vintage Year
We spread risk across market cycles in order to avoid over-committing capital in periods when asset valuations are high. Our capital is usually committed over 3-4 years, and the funds in which we invest commit their capital over 3-6 years.
> Asset Stage
We are primarily focused on opportunities in mature operating assets and existing assets with refurbishment needs (“brownfield”).
We are primarily focused on the developed infrastructure markets where investment opportunities should continue to arise from underinvestment in infrastructure, ongoing privatisation by governments and opportunities coming from the private sector. In addition, we will consider selective investments in developing markets.