Pantheon International (PIN) investor relations material

Key trends in the private equity environment

• NAV performance is modestly improving, with venture capital showing stronger gains, though valuation re-rates remain a headwind but are waning.

• Liquidity remains constrained despite a pickup in exits in 2025; backlog of exits is still elevated and 2026 has been mixed.

• Capital supply is abundant but fundraising is down due to weak distributions; dry powder remains high but is moderating.

• Valuations and financing conditions are stabilizing, with full but steady multiples and supportive credit markets.

• Macro uncertainty persists, but underlying company performance has not been meaningfully impacted.

Private equity deal and exit activity

• Deal flow rebounded in 2025, approaching pre-COVID growth trends, with venture capital seeing the strongest growth.

• Exit activity has recovered, especially for VC-backed exits, but overall liquidity bottlenecks remain unresolved.

• Fundraising declined in 2025, with fewer funds closed and longer times to close; average fund size increased.

• Dry powder levels are moderating, potentially reducing deployment pressure.

Valuations, leverage, and market dynamics

• Valuation multiples have moderated but remain high by historical standards, with large-cap deals consistently priced above mid-market.

• Leverage multiples troughed in 2023 but credit markets reopened in 2024-2025; large-cap deals use more leverage than mid-market.

• The investment playbook is shifting from multiple expansion and financial engineering to operational value-add and creative liquidity solutions.