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.

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

Preliminary diligence

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

Detailed diligence

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

Commitment

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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