One solution open to investors seeking exposure to private equity is to commit via funds-of-funds. These are pooled vehicles which invest over a number of years into selected private equity funds rather than directly into companies. A single investment into a fund-of-funds therefore enables investors to access a broadly diversified underlying portfolio where the individual fund managers have been selected by specialist private equity professionals.
By making commitments to several private equity funds, an investor can broaden the diversification of an underlying portfolio by geography, investment stage and by sector. Performance varies dramatically between individual private equity funds. Consequently, manager selection is of critical importance.
Formed in 1987, PIP is the longest established private equity fund-of-funds listed on the London Stock Exchange. PIP provides liquidity for its shareholders with the benefits of exposure to a balanced portfolio of private equity fund investments, diversified by geography, sector, stage and vintage.
Pantheon UK, PIP’s manager, has a strong track record of investing in high performing private equity funds. With $24.0 billion (as at 30th September 2012) in assets under management and over 400 institutional clients, including public and private pension plans, insurance companies, banks, endowments and foundations, Pantheon is one of the world’s foremost private equity fund-of-funds managers.