Pantheon International (PIN) H2 2024 earnings summary

Executive summary

• NAV per share grew 6.1% for the year ended 31 May 2024, with share price up 20% and discount to NAV narrowing to 34% at year-end.

• Average annualized NAV growth was 13.5% over 10 years, outperforming major indices, with 13.7% annualized since inception.

• £197m invested in share buybacks at a 35% discount, adding 4.7% to NAV; £200m buyback program completed post year-end.

• Portfolio is diversified across direct investments (54%) and funds (46%), with a focus on high-growth sectors like IT and healthcare.

• Portfolio companies delivered 17% EBITDA and 14% revenue growth, outperforming public benchmarks.

Financial highlights

• Net assets at 31 May 2024 were £2.28bn, with NAV per share at 490.5p, up from 462.4p the prior year.

• Five-year total shareholder return was 46.5%, and annualized NAV per share growth over 10 years was 13.5%.

• Portfolio generated positive net cash flow of £37m for the year and £1.6bn over 10 years.

• Weighted average uplift on exits was 20% for the year and 30% since 2012; average cost multiple at exit was 3.0x.

• Ongoing charges ratio was 1.31% (1.87% including financing costs).

Outlook and guidance

• New capital allocation policy from June 2024 links buybacks to share price discount and net portfolio cash flow, with quarterly reviews.

• Board expects net leverage to remain below 10% of NAV under normal conditions.

• Early signs of improvement in the M&A market; several portfolio companies are positioned for sale as conditions improve.

• Enhanced marketing efforts aim to broaden the investor base, especially among UK retail and institutional investors.

• Focus remains on long-term capital growth, not dividends.