Investment Process

A detailed and rigorous approach to selection

Our established portfolio of assets has been carefully selected, based on the strengths of our appointed private equity managers. Pantheon’s ability to assess the risks as well as the opportunities as part of its detailed due diligence process is critically important. Pantheon focuses on understanding the mechanics of how a manager (“General Partner” or “GP”) operates and whether they have the right people, strategy and tools in place to deliver good performance in the future.

01

Source & Screen

  • Preliminary review of fund information
  • Face to face meeting with manager
  • Review and discussion by investment team
  • Agree on process and staffing

Reasons to decline

  • GP franchise or governance weakness
  • Investment strategy drift
  • Insufficient team depth and quality
  • Misalignment of carried interest, fee structure and compensation & incentives
  • Review of fund due diligence information
  • Follow-on meetings with manager and team
  • Review and discussion by investment team
  • Advance notice given and discussion with regional and global investment committees

Reasons to decline

  • Portfolio performance issues
  • Questionable GP value-add
  • Fund legal structuring issues
  • Team capabilities or commitment levels
  • Unfavourable references
  • ESG or compliance concerns
  • Assess and model company financials
  • Reference calls
  • Legal, compliance and ESG reviews
  • Conduct portfolio company meetings
  • Investment recommendation
  • Regional and global investment committee approval

Reasons to decline

  • Portfolio performance issues
  • Questionable GP value-add
  • Fund legal structuring issues
  • Team capabilities or commitment levels
  • Unfavourable references
  • ESG or compliance concerns
  • Complete initial subscription documentation process
  • Secure approval of Pantheon Fund GP / manager
  • Finalise subscription documentation
  • Transfer subscription documentation
  • Correspondence with GP

Reason to decline

  • Legal issues or structuring issues

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