Pantheon International PLC (LSE:PIN) reported half-year net asset value growth of 3.1% as earnings at underlying companies continued to grow well and it received £112 million in dividend proceeds, with the private equity trust seeing an uptick in new deal activity in the market.
A three-step corporate programme was launched in the period, including a share buyback programme of up to £200m, involving a tender offer, and a reworking of the capital structure.
Since August, PIP has bought back 56,760,264 shares for a total amount of £172.4 million, at an average price of 303.7p, representing an average 36% discount to NAV, with a £150 million reverse tender offer completed in October.
PIP's share price increased 8.1% during the period and it was up by 20% for the calendar year 2023.
The next steps in the programme include setting out a continuing buyback mechanism to be implemented over the next financial year, beginning in June, with other ideas being worked on to stimulate further demand for the shares.
Looking at the underlying portfolio, annualised revenue growth was 18% and EBITDA grew 19% over the past five financial years, which PIP said indicated the strength and resilience of these companies and underpins confidence in PIP's reported NAV.
Cash inflows from realisations were significant at £112 million, equivalent to 9% of opening NAV.
As at 30 November 2023, PIP had access to net available cash of £24 million in addition to its multi-currency revolving £500 million credit facility of which £121 million was drawn at the period end.
Chair John Singer said it was a "extremely busy period" for PIP, with the capital activities "enabling us to fulfil our purpose, which remains to deliver excellent risk-adjusted long-term capital appreciation to a growing shareholder base of institutions and individuals, through easier access to diversified and well selected private companies, while offering the daily liquidity of a quoted stock".
"We will continue our dialogue with a wide group of shareholders and ensure that we put their interests first."
Commenting on the wider private equity market, Pantheon partner Helen Steers, who is co-lead manager of PIP, said: "Market dislocation offers good opportunities for those investors that have the capital and the expertise to take advantage of them, and we have seen new deal activity starting to tick up towards the end of 2023.
"We believe that Pantheon's reputation as an established and a reliable partner through market cycles will continue to serve us well for securing high quality deal flow from private equity managers on behalf of PIP."
Shares in PIP rose by a penny to 318p in early trading on Thursday.