Interim Management Statement

6th November 2014 Pantheon International Participations PLC Interim Management Statement (Unaudited) for the Quarter Ended 30th September 2014 Pantheon International Participations PLC ("PIP" or the "Company") presents its interim management statement for the period from 1st July 2014 to 30th September 2014. This constitutes the Company's first interim management statement in the financial year ending 30th June 2015, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. The Company published an unaudited Net Asset Value ("NAV") as at 30th September 2014 on 24th October 2014. This interim management statement summarises the information as at 30th September 2014 and any further developments up to 5th November 2014. Investment Objective PIP's primary investment objective is to maximise capital growth by investing in a diversified portfolio of private equity funds and directly in private companies. General Information 30/09/2014 30/06/2014 Change NAV per share 1,470.6p 1,364.2p 7.8% Ordinary share price 1,195.0p 1,150.0p 3.9% Redeemable share price 1,090.0p 1,070.0p 1.9% Net asset value £969m £902m 7.4% Outstanding commitments £214m £176m 21.6% Performance The NAV per share at 30th September 2014 was 1,470.6p, representing an increase of 106.4p, or 7.8%, relative to the NAV per share at 30th June 2014. Portfolio gains added 55.1p per share in the quarter. Investment income increased the NAV per share by 8.0p. Favourable currency movements increased NAV per share by 47.6p but expenses and taxes reduced it by 5.1p. Share buybacks resulted in an uplift to NAV per share of 0.8p. The Company's ordinary share price increased during the quarter by 3.9% to 1,195.0p, whilst the price of its redeemable shares increased by 1.9% to 1,090.0p at 30th September 2014. Subsequent to the quarter end, up until the market close on 4th November 2014, the share price of the ordinary shares increased to 1,202.0p and the redeemable share price increased to 1,128p. Portfolio Cash Flow PIP's portfolio generated positive net cash of £53.1m in the quarter before the cost of new commitments. Distributions amounted to £62.0m and calls from existing commitments totalled £8.9m. Distributions in the quarter included: * £2.5m in relation to the sale of business software provider Visma AS with £1.6m from KKR & Co. and £0.9m from HgCapital. * £2.3m from Brentwood Associates following the partial sale of its investment in fast-casual restaurant chain, Zoë's Kitchen. * £2.1m from EQT Partners, mainly relating to the sale of Taiwanese cable TV channel operator, Gala TV. * £1.8m from Thomas H. Lee Partners following the sale of Acosta, a sales and marketing agency, which realised a multiple of 3.4x. * £1.8m from Mercapital in relation to the sale of facility management company, Clece, at a multiple of 1.7x. * £1.7m from Bencis following the sale of SPG Prints BV, a manufacturer of printing systems for graphics and textiles, to Investcorp. * £1.5m from Genstar Capital in relation to the sale of healthcare software and payments solution provider, Evolution1, which realised a 2.5x return on invested capital. * £1.4m from Clessidra Capital Partners, mainly relating to the sale of Camfin, the majority owner of tyre manufacturer Pirelli, at a cost multiple of approximately 1.8x. New Commitments PIP invested a total of £87.4m in new commitments in the quarter, which consisted of the following: * Three secondary investments totalling £40.6m in five European buyout funds that were, on average, 80% funded. * Three primary commitments in US buyout funds: £9.9m in Hellman & Friedman Capital Partners VIII, £6.0m in ABRY Partners VIII and £5.5m in Wasserstein Partners III (made alongside co-investment in ALM Media listed below). * Two primary commitments in European buyout funds: £9.3m in Altor Fund IV and £7.5m in ECI 10. * Four co-investments totalling £8.6m, that include a £4.2m investment alongside Wasserstein & Co. in ALM Media, a global leader in specialised business news and information. Since the quarter-end, PIP has completed a £5.7m primary commitment to a Pan-Asian growth capital and buyout fund and a £1.4m secondary investment in a Latin American buyout fund. For its new private equity investments, the Company will continue to emphasise secondary transactions, supplemented with co-investments alongside leading private equity managers selected by Pantheon. The Company will also look to make primary commitments on a targeted basis for portfolio construction purposes. The pipeline of investment activity is likely to lead to the completion of further transactions in the coming quarter. Share Buybacks During the quarter, PIP bought back for cancellation 100,000 ordinary shares at a price of 1,144.0p per share (16% discount to NAV per share at 30th June 2014), and 100,000 redeemable shares at a price of 1,055p per share (23% discount to NAV per share at 30th June 2014). From August 2011, when the Company started buying back shares, up to 30th September 2014, it has acquired, for investment purposes, approximately 12.7% of its outstanding shares. After the quarter end, PIP bought back for cancellation 25,000 ordinary shares at a price of 1,190.0p (13% discount to NAV per share at 30th June 2014) and 100,000 redeemable shares at a price of 1,097p (20% discount to NAV per share at 30th June 2014). The Board expects the Company's mature portfolio to remain cash generative. In certain circumstances, usually where the Company's shares are quoted at a significant discount to NAV, the Board may view the shares as presenting an attractive investment opportunity relative to other uses of cash, such as new investment commitments. In such circumstances, the Board will consider targeted buybacks of ordinary and redeemable shares instead of, or in addition to, new investments as a means of utilising cash generated from the Company's portfolio. Cash Balance and Remaining Facilities As at 30th September 2014, PIP had cash balances equivalent to a total of approximately £96m. In addition, the Company's multi-currency revolving credit facility agreement ("the Bank Loan Facility"), comprising an $82m US dollar facility and a €57m euro facility, was completely undrawn. The Board expects to renew the credit facility before its expiry in June 2015. Based on exchange rates at 30th September 2014, PIP's total available liquid financing capacity, comprising its cash and bank facility, stood at £191m. Undrawn Commitments Undrawn commitments to investments stood at £214m at 30th September 2014, calculated using exchange rates at that date. Drawdowns of undrawn commitments typically occur over a period of several years. Historical Total Return Performance to 30th September 2014¹ Since 1 Year 3 Years 5 Years 10 Years Inception % % p.a. % p.a. % p.a. % p.a. NAV per share 14.6% 8.5% 12.2% 9.6% 11.4% Ordinary share price 13.1% 24.9% 24.8% 8.7% 11.1% FTSE All-Share Total Return 6.1% 13.9% 9.7% 8.2% 8.0% MSCI World (sterling) Total 12.7% 17.2% 11.2% 8.9% 7.1% Return ¹PIP was launched on 18th September 1987. The performance figures for PIP assume reinvestment of dividends, capital repayments and cash flow from warrants. Valuations PIP's valuation policy for private equity funds is based on the latest accounts produced by the managers of the funds in which PIP has holdings. In the case of the valuation as at 30th September 2014, the majority of valuations (accounting for circa 94% by value) are dated 30th June 2014. Private equity funds may contain a proportion of quoted shares from time to time, for example where the underlying company investments have been taken public but the holdings have not yet been sold. The quoted market holdings at the date of the latest fund accounts are reviewed and compared with the value of those holdings at the period end. If there has been a material movement in the value of these holdings, the valuation is adjusted to reflect this. Foreign Exchange Exposure At 30th September 2014, the value of the private equity investment assets stood at £873m. Of the private equity investment assets at PIP's holding level, 74% were represented by funds reporting values denominated in US dollars, 21% denominated in euros, 4% denominated in sterling and 1% denominated in other currencies. Of the 74% of investment assets denominated in US dollars, approximately 4% (expressed as a proportion of PIP's total portfolio) are invested in funds investing mainly in Europe and approximately 10% (expressed as a proportion of PIP's total portfolio) in funds investing mainly in Asia. In addition to the funds reporting values denominated in sterling, many of the euro-denominated funds have investments in the UK. Other than as described in the paragraphs above, the Board is not aware of any events during the period from 30th September 2014 to the date of this statement that would have a material impact on the financial position of the Company. Tom Bartlam Chairman 5th November 2014 The views, information and data in this announcement should not be deemed as a financial promotion or recommendation. Shareholders are advised that this statement is unaudited. ENDS For more information please visit PIP's website at or contact: Andrew Lebus or Alexis Barling Pantheon 020 7484 6200 Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of this announcement.
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