Pantheon Asia Select 2014

Exhibit 17
Pantheon Access: Global Select
Prepared for State Universities Retirement System of Illinois
October 30, 2014
1
Exhibit 17
Presenting to you today
Susan Long McAndrews, Partner (joined 2002, 19 years of private equity experience)
Susan is a member of Pantheon’s Partnership Board and also leads Pantheon’s North American primary fund
investment activity. Susan is a member of the International Investment Committee, the US Regional Investment
Committee and the Global Infrastructure Committee. Prior to joining Pantheon, she was a principal at Capital Z
Partners in Asia, where she was responsible for executing investments in private equity funds and in fund
management companies. In addition, Susan was a director at Russell Investments from 1995 to 1998 in its private
equity group. Susan received a BA from the University of North Carolina at Chapel Hill in international studies and
Economics and an MA from Stanford University in international policy studies. Susan is based in San Francisco.
[email protected]
Yokasta Segura-Baez, Principal (joined in 2011, 9 years of private equity experience)
Yokasta focuses on client services and business development activities in North America. In addition, Yokasta is a
US representative on Pantheon’s Responsible Investing steering committee which establishes standards used by
the firm in screening GP’s and portfolio companies for environmental and sustainability practices. Yokasta is also
responsible for Pantheon’s diversity initiatives. As part of this responsibility, Yokasta manages Pantheon’s
partnership with Sponsors for Educational Opportunity (“SEO”) and is a member of their Limited Partners Advisory
Committee. Previously, Yokasta was an Investor Relations Manager with AXA Private Equity, responsible for
marketing all of AXA’s private equity strategies in North America and for providing investor relations support for
existing clients in the region. Prior to AXA, she practiced real estate law in the Dominican Republic. Yokasta has
an undergraduate degree in International Law with Honors from the University of Santo Domingo and a Master of
Politics and Diplomacy from the University Catolica de Santo Domingo. She received a Finance Certificate from
New York University and is fluent in Spanish and French. Yokasta is based in New York.
[email protected]
2
Exhibit 17
Agenda
>
Pantheon Overview
>
Pantheon Access
>
Pantheon Global Select
>
US Market & Opportunity
>
European Market & Opportunity
>
Asian / Emerging Market & Opportunity
>
Responsible Investing / Diversity Initiatives
>
Appendix

SURS Portfolio Update

Pantheon Team
3
Exhibit 17
Pantheon Overview
4
Exhibit 17
Investing in private markets assets for over 30 years
1 Pantheon
International Participations PLC
at 1st October 2014
3 As at 31st March 2014. This figure includes assets subject to discretionary or non-discretionary management, advice or those limited to a reporting function.
2 As
5
Exhibit 17
Global capabilities
Chris Meads
Chief Investment Officer and Head of Asian Primaries
Susan Long McAndrews
Head of U.S. Primaries
Dennis McCrary
Head of Co-Investment
2007
1987
Helen Steers
Elly Livingstone
Head of European Primaries Head of Global Secondaries
1982
LONDON
2014
SEOUL
NEW YORK
SAN FRANCISCO
1992
2014
HONG KONG
BOGOTÁ
The Americas
27 years
Nine U.S. funds
US$17.2bn AUM1
Europe
Asia
32 years
Seven European funds
US$9.2bn AUM1
22 years
Six Asian funds
US$4.0bn AUM1
> TEAM: 30
> TEAM: 33
>
TEAM: 102
> PE EXPERIENCE: 286 years
> PE EXPERIENCE: 362 years
>
PE EXPERIENCE: 84 years
> LANGUAGES: 9
> LANGUAGES: 13
>
LANGUAGES: 4
As at 1st October 2014
1 As at 31st March 2014. This figure includes assets subject to discretionary or non-discretionary management, advice or those limited to a reporting function.
2 Includes one professional who fulfils investment and client service responsibilities
6
Exhibit 17
SURS & Pantheon: over a decade of working together
2006
Illinois enacts
Sudan investment
law; Pantheon
2008
signs affirmation
Pantheon
each year going becomes a PRI
2004
forward
signatory
PGSF II ($25m)
2012
PEURO VII
(€31m)
PUSA IX
($85m)
2014
SURS –
Pantheon
Global Select
2002
Separate Account
($600m)
PEURO III (€68m)
2007
PEURO VI (€31m)
PUSA VIII ($103m)
2011
Pantheon
endorses ILPA
PE principles
2015
Illinois enacts
new Public Act
disclosures law;
which Pantheon
adheres to,
effective
January 2015
For illustrative purposes only
7
Exhibit 17
Pantheon Access
8
Exhibit 17
Pantheon Access: an innovative primary platform
>
Strategy
A delivery platform allowing access to:
>
Pre-defined regional and global primary strategies
>
Multiple customization opportunities
>
Secondaries (10%) and co-investment (10%)
> Flexibility
Key Benefits
> Simplicity
> Competitive terms
> Launched in Q4 2013
Status
> Open for commitments
> Streamlined subscription process
Provides a “one-stop shop” for a diversified global private equity program
9
Exhibit 17
Pantheon ACCESS – structure for SURS
Pantheon Access Structure
Pantheon Multi-Strategy Program 2014
1.
Pantheon
Global Select
2014
2.
Investors select one or more Program strategies
Pantheon
USA Select
2014
Pantheon
Europe Select
2014
Pantheon
Asia Select
2014
Investors commit to a Fund
Luxembourg
Fund
US Fund
3.
Primary
investments
Customized
Strategies
Commitments made to underlying investment
Global
secondary
investments
Global
coinvestments
Global
Venture
10
Exhibit 17
Pantheon Global Select
11
Exhibit 17
Track-record of superior performance
Pantheon Global Select 2014 is a new product offering from Pantheon. Set forth below is Pantheon’s pro forma global primary performance, based upon the primary private equity investments of Pantheon’s
different regional fund vehicles and separate account clients.
Please note that this is hypothetical performance and no Pantheon fund or client has achieved the results in this hypothetical composite.
Average Net IRR: 14.0%
Average outperformance: 580 bps
Net IRR
25.0%
MSCI World PME
20.0%
15.0%
10.0%
5.0%
0.0%
Pro forma
1992 - 1994
Pro forma
1995 - 1997
Pro forma
1998 - 2000
Pro forma
2001 - 2003
Pro forma
2004 - 2006
Pro forma
2007 - 2009
Pro forma
2010 - 2012
TOTAL
1992-2012
Data as at 31st March 2014
The measures for the pro forma performance of Pantheon Global Select 2014 include the primary investment results of different regional fund vehicles and separate account clients, as described below. So as to represent the period of time over
which a Pantheon primary fund of funds may commit its capital, Pantheon has created nominal pools of capital, representing three-year time periods, each pool comprising the primary investments made during such period measured by date of first
draw down and weighted in line with the Pantheon Global Select 2014 strategic allocations. In compiling the underlying investment results, within regional and fund stage allocations, where possible, all underlying investments are weighted equally
by vintage year and represent all primary fund commitments made by PEURO 91 pro forma, PEURO 94 pro forma, PEURO I–VII, PUSA I–IX, PUSA SFP IX, PASIA I–VI, PEAF VI, PEMF (Ex-Asia) and Emerging Market Investments made by
Pantheon on behalf of separate account clients from 1992–2012. The pro forma results presented herein do not represent actual historical results achieved by any client, but instead reflects illustrative results. Pro forma results, such as those
depicted above, have inherent limitations which are described more fully in “Limitations of Investment Performance Data and Pro Forma Data” in Section XV “Risk Factors” in the PPM and as such should not be relied on as an indication of what
actual performance would have been for the time period shown or may be in the future.
Net IRR. Net IRR is the annualized internal rate of return (“IRR”) as calculated for each of the pro forma pools described above based upon pro forma net monthly cash flows and pro forma residual NAV included in the last month. The measure
presented is net of a pro forma management fee to Pantheon, assumed to be the highest default rate with respect to Pooled Investors set forth in the Key Terms for the Program (i.e. an annual management fee of 55bps on aggregate capital
commitments). Commencing on the eighth anniversary of the end of the first accounting period and in respect of each year following, the Management Fee is reduced to 90% of the amount paid in the previous year. Nominal net performance has
been calculated without taking into account fund organizational and administrative expenses, which include expenses incurred in connection with the formation of and sale of interests in the fund, fees and expenses related to investment activity
and all fees and expenses related to the operation and administration of the fund, nor of cash inefficiencies that may exist within the actual funds. The deduction of such fees would decrease returns. Prospective investors should note that the
actual fee structures for the regional funds and separate account clients differed from that included in the pro forma presentation above and varied throughout the periods presented.
MSCI World PME. The notional IRRs for the MSCI World Index were calculated using the Public Market Equivalent (PME) methodology, whereby the Pantheon net cash flows are hypothetically invested in the index, assuming zero cost. The MSCI
World Index assumes reinvestment of all dividends after tax and is supplied by Bloomberg/MSCI.
In considering this performance prospective investors should bear in mind that past or expected performance is not necessarily indicative of future results and there can be no assurance that Global Select will achieve similar returns or that
expected returns will actually be achieved. Past performance is not indicative of future results. Future returns are not guaranteed, and a loss of principal may occur.
12
Exhibit 17
Pantheon Global Select 2014
Regional
Strategy
5%-15%
0%-10%
Small/Mid
Buyouts
15%-25%
Large Buyouts
US
10%-20%
Europe
50%-60%
20%-30%
45%-55%
Asia & Emerging
Markets
Special
Situations
Mega Buyouts
15%-25%
Growth Equity
> Approximately 30-35 funds
> Plus 10% co-investments & 10% secondaries
> “One-stop shop” for diversified global private equity
As of March 2014
The ranges are indicative and serve as a target only. Pantheon will always retain flexibility to adapt allocations as required by market developments
13
Exhibit 17
Pantheon Global Select indicative roadmap
Pantheon Global Select Indicative Portfolio
Buyout
Small
Medium
Large
Mega
Fund 1
(2014)
Fund 9
(2015)
Fund 17
(2015)
Fund 23
(2015)
Fund 2
(2015)
Fund 10
(2015)
Fund 18
(2016)
Fund 3
(2015)
Fund 11
(2015)
Fund 19
(2016)
Fund 4
(2016)
Fund 12
(2016)
Fund 20
(2017)
Fund 5
(2016)
Fund 13
(2017)
Fund 21
(2017)
Fund 6
(2016)
Fund 14
(2017)
Fund 22
(2017)
Fund 7
(2017)
Fund 15
(2017)
Fund 8
(2017)
Fund 16
(2017)
Growth Equity
Special Situations
Fund 24
(2014)
Fund 27
(2014)
Fund 25
(2014)
Fund 28
(2015)
Fund 26
(2015)
Fund 29
(2016)
Fund 30
(2016)
Key
Europe
North America
Asia & ROW
May commit 10% to secondaries and / or 10% to co-investments
For illustration purposes only. Shows a hypothetical model portfolio based on the proposed weightings for Global Select 2014. The ranges are indicative and serve
as a target only. Pantheon will always retain flexibility to adapt allocations as required by market developments.
14
Exhibit 17
Global Select 2014: SURS terms
Key terms
Management fee
55 bps p.a., attenuating after year 8
Carried interest /
incentive fee
No carried interest on primaries. 10% on secondary and co-investments
(subject to an 8% preferred return)
Commitment period
Generally up to 5 years
Fund currency
USD
Pantheon commitment
1%
15
Exhibit 17
US Market & Opportunity
16
Exhibit 17
U.S. private equity market overview
Key market statistics
Deal activity1
Current status
Indicator
Capital Invested ($B)
Trend
$1,000
New deal
activity
Exit activity1
# of Deals Closed
4,000
3,274
$800
Capital Exited ($B)
2,482
2,270
$600 1,780
2,444 2,616 2,602
1,583
1,272
$400
$160
2,000
$120
494
$0
$40
0
555
600
421
390
800
728
618
354
400
256
200
$69
$400
342
0
Debt / EBITDA
9.7x
400
303
290
213
163
US purchase price multiples2
# of Funds Closed
297
$300
178 180
300
150
$100
8.4x
3.4x
3.3x
9.1x
7.7x
TEV / EBITDA
8.5x
8.8x 8.7x
8.8x
4.0x
3.9x
3.6x
3.5x
4.6x
4.9x
5.1x
5.3x
3.7x
200
2.7x
100
4.6x
$87 $115 $194 $290 $273 $128 $90 $112 $131 $230 $83
$0
8.4x
Equity / EBITDA
7.3x
218
218
$44 $128 $130 $197 $148 $102
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD
6/14
US PE fundraising1
Capital Raised ($B)
$91 $151 $163 $72
$0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD
6/14
$200
547
$80
Availability
of debt
Valuations
650
3,000
$221 $310 $509 $892 $355 $172 $385 $399 $459 $466 $244
Portfolio
company
earnings
1,000
801
1,000
$200
Exit activity
$240
$200
2,763
2,184
# of Exits
4.3x
9.5x
3.8x
4.0x
5.0x
5.1x
6.1x
4.8x
3.7x
5.7x
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD
6/14
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD
8/14
Note: the above table reflects Pantheon’s opinion of market trends and outlook as at September 30, 2014.
1 Source: Pitchbook, Q3 2014 Private Equity Breakdown, U.S. buyouts.
2 Source: S&P Capital IQ, M&A Stats.
17
Exhibit 17
Thematic investment opportunities
Seek out sectors with favorable
growth characteristics
Capitalize on undervalued and
complex situations
> Cautious approach to GDPcorrelated industries in the
current environment
> Managers acquire companies
that are overlooked because of
their perceived intricacies
> Growth tied to innovation,
population, or global markets
> Trade complexity for attractive
entry valuations
> Sub-sectors within energy,
healthcare, and technology
> Operational skill sets and sector
expertise are critical to success
> Primarily accessed via
sector-focused managers
> Opportunistic across sectors
Re-industrialization provides private equity opportunities
> Re-shoring has driven growth in the manufacturing sector
> Significant investment in new capacity and technology will be
required
> Target chemicals, machinery and equipment, and services
subsectors
> Executable across stages
Seek demonstrated value creation capabilities in all strategies
Pantheon’s opinion as of October 1st, 2014
18
Exhibit 17
Strategy in action: target technology across stages
Strong market
acceptance and
deal flow with
positive returns
> Top quartile track record
since 1994
> First institutional growth
capital and select buyouts
> Software, services and
internet businesses
> Differentiated involvement
post-investment
Invested
Invested
> Tech venture fund founded by
proven high-profile
entrepreneurs
> Thought leaders in internet
and enterprise technology
> Disruptive model of valueadded services
Growth Equity
Positive
performance
with early
realizations
Buyouts
> Talented and sophisticated
team of tech experts
> Industry reputation and deal
access
> Strong performance
momentum
Invested
Venture Capital
Strong
deployment
and early
performance
Pantheon view. Past performance is not indicative of future results. Future performance is not guaranteed, and loss of principle may occur These examples are of
successful or potentially successful portfolio investments and are not representative of every investment. A list of all technology sector and/or US primary investments can
be made available upon request. This case study is an example of the type of investments that Pantheon seeks to make. The statements above reflect the views and
opinions of Pantheon as of the date of the investment analysis. All forecasts are speculative, subject to change at any time and may not come to pass due to economic
and market conditions.
19
Exhibit 17
European Market & Opportunity
20
Exhibit 17
European private equity market overview
Key market statistics
Deal activity1
Current status
Indicator
Trend
€150
500
368
358
371
400
341
€100
350
292
250
201
700
618
596
554
€125
600
496
500
440
€100
385
300
€75
# of Exits
Capital Exited (€B)
€150
450
€125
New deal
activity
# of Deals Closed
Capital Invested (€B)
449
Exit activity1
400
€75
293
284
300
200
€50
150
95
100
€25
Exit activity
€0
€127
€34
€23
€46
€44
€61
€38
€11
2007
2008
2009
2010
2011
2012
2013
H1 2014
100
€94
€35
€27
€59
€108
€88
€89
€63
2007
2008
2009
2010
2011
2012
2013
H1 2014
0
Median entry EV/EBITDA2
# of Funds Closed
Capital Raised (€B)
343
Equity / EBITDA
9.1x
8.7x
300
270
€80
230
229
197
250
206
€60
164
3.2x
6.9x
4.4x
200
100
8.1x
7.9x
6.1x
4.1x
5.5x
50
€98
€48
€41
€42
€57
€92
2008
2009
2010
2011
2012
2013
7.5x
4.3x
4.7x
2.7x
3.0x
3.4x
3.2x
2.8x
2009
2010
2011
2012
2013
€67
0
2007
7.5x
5.4x
3.8x
€20
4.7x
4.3x
150
€101
TEV / EBITDA
9.8x
350
€100
€0
Debt / EBITDA
400
351
€40
Valuations
€0
European PE fundraising1
€120
Portfolio
company
earnings
200
€25
50
0
Availability
of debt
€50
H1 2014
2006
2007
2008
Note: the above table reflects Pantheon’s opinion of market trends and outlook as at June 30, 2014. Subject to rounding differences
1 Source: Preqin. Deal activity based on completed buyout deals in Europe 2007-2013. Exit activity includes all Europe-based private equity backed exits from 2006-2013,
excluding venture
2 Source: PEURO I-VII primary investment only, as at December 31, 2013
21
Exhibit 17
One continent, many different market opportunities
UK and Ireland
> Largest and most mature
European PE market
> PE-friendly environment
> Deep PE infrastructure
> Pan-European and local
managers provide excellent
coverage
France
> Thriving mid-market focused PE
industry
> “Insiders’” market with limited
penetration by pan-European
firms
> Management teams very
accepting of PE
> Understanding of local culture
and industrial relations key to
success
Southern Europe
> Italy, Spain and Portugal are
dominated by family-owned
businesses
> Tend to be “insiders” market,
small number of local managers
> Larger transactions tend to be
undertaken by pan-European
firms
Nordic
> Region notable for significant
number of high-quality industrial
and service companies
> Market dominated by a number
of local players
> Management teams tend to be
high quality and have
international outlook
Germany, Austria & Switzerland
> Tends to be dominated by
corporate spin-outs generally
backed by pan-European firms
> Family-owned business
succession drives mid-market
volume
> Industrial, export-orientated
companies are a key focus
Central & Eastern Europe
> Growing volume of transactions
> Relatively faster-growing
economies
> Large number of small PE firms
Source: Pantheon Opinion; PEInsight / Unquote – March 2014;
22
Exhibit 17
Strategy in action: targeting attractive themes across stages
Index
Growth
> Top quartile track record Funds II
to V
> Exceptional brand name due to
its investment team credentials
and ability to spot, invest in, and
develop leading tech companies
> Strong networks generating
privileged deal flow in growth
deals
> Positive
performance with
early realizations
managing risk for
portfolio
> Access to premier
VC and growth
manager which is
closed to new LP
relationships
Buyouts
> Positive performance by
leading Nordic-cap buyout
focused manager, highly
access constrained
> Committed and stable team
with low team turnover
> Value creation through
export-led growth and
operational improvements
Invested
> Capital efficient model
generating attractive returns
from early-stage life sciences
> Exceptional team with strong
focus on early liquidity
> Pharma & med-tech
companies increasingly
interested in acquiring novel
technologies
Invested
Growth Equity
Invested
Venture Capital
Top quartilemanager with
differentiated
operational
approach
Pantheon view. Past performance is not indicative of future results. Future performance is not guaranteed, and loss of principle may occur These examples are of
successful or potentially successful portfolio investments and are not representative of every investment. This case study is an example of the type of investments that
Pantheon seeks to make. The statements above reflect the views and opinions of Pantheon as of the date of the investment analysis. All forecasts are speculative,
subject to change at any time and may not come to pass due to economic and market conditions.. A list of all European primary investments is available upon request.
23
Exhibit 17
Asia & Emerging Markets Opportunity
24
Exhibit 17
Asia private equity market overview
Key market statistics
Deal activity by type1
Current status
Indicator
Buyout
Trend
H1 2014
New deal
activity
2013
2012
Growth Capital
2 12
4
2011
Public to Private
Other
3
4
4
2 24
3
6
15
10
Trade sale
H1 2014
7
5
6
2
4
4
Exit activity
2010
IPO
1 10
12
10
PIPE
Exit activity by type1
5
6
34
3 1 25
25
2013
17
2012
16
2011
31
2010
34
Restructuring
49
Portfolio
company
earnings
132
98
Valuations
151
8x
88
39
50
45
32
9 197
10 18 7 187
121
12 x
9.7x
10 x
56
8
33 10 211
214 8 156
PASIA portfolio entry multiples2
208
168
9
Number of exits
Asia PE fundraising1
220
Unspecified
13 94
142
Deal volume US$bn
Availability
of debt
Sale to GP
8.4x
10.7x
10.6x
9.0x
9.6x
8.4x
7.4x
7.2x
6x
4x
28
2x
0x
2010
2011
2012
Agg. capital raised US$bn
2013
H1 2014
Agg. no of funds
2005 2006 2007 2008 2009 2010 2011 2012 2013
Cost weighted Average entry TEV/EBITDA
Note: the above table reflects Pantheon’s opinion of market trends and outlook as at 30th June 2014. Subject to rounding differences
1Source: Preqin. Deal activity based on completed deals in Asia 2010-Q2 2014. Excludes venture. Other includes add-ons, distressed debt, merger, recapitalisation,
restructuring, special situations and turnarounds. Exit activity includes all Asia-based private equity backed exits from 2010-Q2 2014. Excludes venture.
2Source: Pantheon, PASIA III to PASIA VI primary investments only, as at Q4 2013
25
Exhibit 17
A wide spectrum of thematic opportunities
Latin America
> Increasing middle
class
> Growth investment
opportunities
China
> Growth model
rebalancing
> Efficiency gains
through
professionalization
Africa, Middle East &
Turkey
> Structural changes
> Urbanization and
emerging consumer
class
Japan and Korea
> Industry consolidation
> Business solutions to
aging demographics
in Japan
India
> Corporate
deleveraging
> Technology enabled
service model
upgrade
Australia & New
Zealand
> Corporate and
household
deleveraging
> Platform roll-up
South East Asia
> ASEAN integration
and cross-border
expansion
> Family business
successions
Pantheon opinion, as at 2014
26
Exhibit 17
Strategy in action: customized stage focus across markets
> Clearly defined investment
focus around the strong
background and experience
of its founders
> Pre-deal consulting driven
involvement model along with
high GP commitment
> Strong partnership of
international investment
expertise and local capability
> Long standing experience in
providing structured credit
> Sizeable and attractive
opportunity set with limited
competition in stressed and
distressed Indian market
> One of the few funds focused
purely on mid-market control
buyouts on a regional basis
> Differentiated strategy in a
less competitive market
> Strong capabilities of
sourcing high quality
proprietary deal flow
Strong DPI and
performance in a
relatively short
period on an
earlier fund
Early performance
uplift
Invested
Buyouts
Invested
Special Situations
Invested
Growth Equity
Strong
performance track
record on earlier
funds
Pantheon view. Past performance is not indicative of future results. Future performance is not guaranteed, and loss of principle may occur These examples are of
successful or potentially successful portfolio investments and are not representative of every investment. This case study is an example of the type of investments that
Pantheon seeks to make. The statements above reflect the views and opinions of Pantheon as of the date of the investment analysis. All forecasts are speculative,
subject to change at any time and may not come to pass due to economic and market conditions.. A list of all Asian primary investments is available upon request.
27
Exhibit 17
Responsible Investing & Diversity Initiatives
28
Exhibit 17
What is ESG and why is it important?
ESG incorporates active consideration of environmental, social, and
corporate governance (ESG) factors within investment decision-making
and ownership practices
To fulfill their fiduciary duty, investors need to give appropriate consideration
to ESG issues, and the Principles for Responsible Investment (PRI) provide
a framework for this
The PRI were developed by the United Nations Secretary-General and
Pantheon has signed up to adhere to these principles
Our clients are increasingly focusing on ESG issues and are
asking us to prove that we take ESG considerations into account
when making investments
29
Exhibit 17
What is Pantheon doing to promote Responsible Investing?
> Educating clients through
conferences, seminars and
briefing notes
> Working with GPs and LPs
Integrating ESG in:
> Due diligence
> Reporting/monitoring
> Risk matrix
1. Investment
analysis/
processes
4. Promoting
acceptance
> Tabling ESG issues at
advisory boards
> Committed to following policy
of active ownership
2. Active
ownership
5. Working
together
> Collaboration with clients,
GPs and trade bodies
> Importance of sound ESG
practices highlighted during
negotiations of Pantheon
side-letters with GPs
> Work with trade bodies on
disclosure issues
3. Disclosure
6. Reporting
> Encouraging GPs to report
on ESG issues and their
value add in reports to
investors
In 2014, Pantheon received an almost perfect score on its
annual assessment from PRI
30
Exhibit 17
Pantheon at forefront of diversity initiatives
> Seek talented professionals; ongoing HR initiatives to ensure
Hiring
opportunities are provided to minorities, women and persons
with disabilities
Sourcing and
evaluation of
emerging
mangers
> Actively monitor the roster of emerging managers
Involvement in
non-profit
organizations
> Active participation and support of major industry
> Maintain an open-door policy
organizations
> SEO, NASP, Toigo, etc.
31
Exhibit 17
Deal funnel
• 39 MFDB managers
Identified Managers
• 36 managers monitored
Institutional quality
Materials received
Meetings held
Advanced
due
diligence
Invested
• 18 opportunities
• 12 first meetings in 2013-2014
• 5 opportunities
• 4 commitments
Note: Managers included fit, to the best of our knowledge, SURS’ criteria for MFDB managers (majority ownership by minorities, women,
or disabled persons). Other includes private equity real estate firms.
32
Exhibit 17
Public Act 098-1022
Pantheon Compliance with Sec. 1-113.21. related to Contracts for Services
>
Number of investment and senior staff who are (i) a minority person, (ii) a
female, and (iii) a person with a disability;
>
Number of contracts for services with (i) a minority owned business, (ii) a
female owned business, and (iii) a business owned by a person with a
disability;
>
Number of contracts with a business other than (i) a minority owned business,
(ii) a female owned business, or (iii) a person with a disability.
33
Exhibit 17
Diversity initiatives and collaboration
Relationship:
>
Pantheon has created a partnership with Sponsors for Educational Opportunity (“SEO”)
Background:
>
Founded in 1963, SEO’s mission is to provide academic enrichment and career development opportunities to talented
young people from underserved and underrepresented communities
Outcome of Pantheon’s engagement:
>
Pantheon was granted an LP Advisory Board seat alongside large institutional investors and GPs (Yokasta Segura-Baez
serves as Pantheon’s rep), and also benefits by securing an annual summer intern, along with introductions to additional
candidates for employment, as appropriate
Pantheon and SEO’s first collaborative event: Private Equity Clinic for university students hosted at Pantheon’s New York office
34
Exhibit 17
Appendix
35
Exhibit 17
SURS portfolio update as at Q2 2014
No.
Commitment
Paid-in
Paid-in/
committed
Distributions
NAV
Total value
$m
%
$m
%
$m
$m
$m
Multiple
Gross
IRR
Separate Account
Buyout
30
388
39
362
93
419
201
620
1.71 x
12.1%
Venture
16
99
10
97
97
58
80
139
1.43 x
7.1%
Special situations
8
67
7
64
95
83
20
103
1.62 x
11.3%
Growth Equity
3
18
2
18
100
18
13
32
1.72 x
12.2%
Secondaries
11
31
3
29
93
42
4
46
1.62 x
15.6%
Total Separate Account
68
604
61
570
94
621
318
939
1.65 x
11.3%
PEURO III LP
1
89
9
82
92
110
37
147
1.80 x
15.6%
PEURO VI LP
1
42
4
27
66
7
31
38
1.37 x
9.5%
PEURO VII LP
1
42
4
14
35
0
16
16
1.13 x
n/a
PUSA VIII LP
1
103
10
68
66
10
89
99
1.45 x
12.0%
PUSA IX LP
1
85
9
30
35
2
33
35
1.16 x
n/a
PGSF II LP
1
25
3
23
92
20
8
28
1.22 x
4.9%
Total Funds of Funds
6
386
39
245
63
149
214
363
1.48 x
12.9%
74
989
100
815
82
770
532
1302
1.60 x
11.6%
Funds of Funds
Total investments
Past performance is not indicative of future results. Future performance is not guaranteed, and loss of principle may occur
36
Exhibit 17
Global investment team with deep experience
International Investment Committee
Susan Long
McAndrews
Partner
San Francisco
Chris Meads
Partner
Hong Kong
Elly Livingstone
Partner
London
Dennis McCrary
Partner
San Francisco
Helen Steers
Partner
London
Brian Buenneke
Partner
San Francisco
Andrew Lebus
Partner
London
Paul Ward
Partner
London
Jaime Londoño
Principal
Bogotá
Tanu Chita
Vice President
London
Xan Morgan
Vice President
San Francisco
Andrea Echberg
Partner
London
Brian Lim
Partner
Hong Kong
Rob Wright
Partner
London
Imogen Richards
Principal
London
Jérôme Duthu-Bengtzon
Vice President
London
Jan Pribyl
Vice President
London
Matt Garfunkle
Partner
San Francisco
Jeff Miller
Partner
San Francisco
Evan Corley
Principal
San Francisco
Alex Scott
Principal
London
Charles Helmore
Investment Director
London
Andrew Sherriff
Vice President
San Francisco
Jie Gong
Partner
Hong Kong
Nik Morandi
Partner
London
Maureen Downey
Principal
San Francisco
Dushy Sivanithy
Principal
London
Sibing Huang
Vice President
Hong Kong
Toni Vainio
Vice President
London
Brett Johnson
Partner
San Francisco
Rudy Scarpa
Partner
New York
Kevin Dunwoodie
Principal
San Francisco
Alex Wilmerding
Principal
Hong Kong
Greg Little
Vice President
San Francisco
Charlotte Westley
Vice President
San Francisco
Matt Jones
Partner
New York
Francesco
di Valmarana
Partner
London
Leon Hadass
Principal
London
Erik Wong
Principal
London
Sara Lonergan
Vice President
San Francisco
Bing Wong
Vice President
San Francisco
Veena Isaac
Principal
New York
Petra Bukovec
Vice President
London
Kathryn Leaf Wilmes
Partner
New York
Global pool of 23 investment associates
Senior Associates:
Associates:
Analysts:
Quantitative Research:
1
Raj Chall, Eric Cheung, Kunal Sood, Jeremy Weisberg, Ana Maria Zarruk Serrano
Pierre Garnier, Amir Gupta, Nick Kavanagh, Brandon Park, Daniele Pitsch, Charlie Tafoya, Brandon Vu, Richard Wong, Jin Yan
Vladimir Balchev, Jamie Hayford, Noé Richard, Cullen Wilson, Joanna Yiu
Andrea Carnelli, Andres Reibel, Ian Roberts, Stefan Von Pfefer
Observer, As at 1st September 2014.
37
Exhibit 17
Disclosure
This document and the information contained herein is the confidential and proprietary information of Pantheon; it may not be reproduced, provided or disclosed
to others, or used for any other purpose, without the prior written permission of Pantheon; and must be returned promptly upon request. This document is
distributed by Pantheon which is comprised of operating entities principally based in San Francisco, New York, London and Hong Kong. Pantheon Ventures Inc.
and Pantheon Ventures (US) LP are registered as investment advisors with the U.S. Securities and Exchange Commission. Pantheon Ventures (UK) LLP is
authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Pantheon Ventures (HK) LLP is regulated by the Securities and
Futures Commission in Hong Kong.
In Australia, this document and the information contained herein is intended only for wholesale investors under section 761G of the Corporations Act 2001 (Cth)
("Wholesale Investor"). By receiving this document you represent and warrant that you are a Wholesale Investor. Pantheon Ventures (UK) LLP is exempt from
the requirement to hold an Australian financial services licence under the Corporations Act 2001 (Cth) in relation to the provision of any financial product advice
regarding the financial products which are referred to in this document and is regulated by the FCA under UK laws, which differ from Australian laws.
In Europe and the United Kingdom, this document and the information contained herein is provided by Pantheon Ventures (UK) LLP solely to professional clients
or eligible counterparties for the purposes of the rules of the Financial Conduct Authority. In all other jurisdictions, this document is intended for institutional
clients and investors to whom this document can be lawfully distributed without any prior regulatory approval or action.
Nothing in this document constitutes an offer or solicitation to invest in a fund managed or advised by Pantheon or recommendation to purchase any security or
service. Nothing contained in this document is intended to constitute legal, tax, securities or investment advice. The general opinions and information contained
in this publication should not be acted or relied upon by any person without obtaining specific and relevant legal, tax, securities or investment advice. In general,
alternative investments such as private equity or infrastructure involve a high degree of risk, including potential loss of principal invested. These investments can
be highly illiquid, charge higher fees than other investments, and typically do not grow at an even rate of return and may decline in value. These investments are
not subject to the same regulatory requirements as registered investment products. In addition, past performance is not necessarily indicative of future
results. This presentation may include “forward-looking statements”. All projections, forecasts or related statements or expressions of opinion are forwardlooking statements. Although Pantheon believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct, and such forward-looking statements should not be regarded as a guarantee, prediction or definitive statement of
fact or probability. All information or discussion in these materials regarding funds managed/advised by Pantheon or its affiliates is qualified entirely by the terms
and provisions of the relevant private placement memorandum(s) and limited partnership agreement(s) for such fund(s).
Any reference to the title of “Partner” in these materials refers to such person’s capacity as a partner of Pantheon Ventures (UK) LLP. In addition, any reference
to the title of “Partner” for persons located in the United States refers to such person’s capacity as a limited partner of Pantheon Ventures (US) LP.
Copyright © Pantheon 2014.
All rights reserved.
PVL 5931
38