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Pantheon closes debt secondary fund on $834m

The fund closed well in excess of its original target as both LPs and fund managers seek liquidity solutions.

Private markets investor Pantheon has held a final close of its second private debt secondaries vehicle at $834 million.

The fund, Pantheon Senior Debt II USD, comfortably beat its initial target of $500 million and brings Pantheon’s total capital dedicated to private debt secondaries to $2.4 billion.

Pantheon said debt secondaries are increasingly in demand as a liquidity solution for both fund investors and managers. The firm estimates the total debt secondaries market to be worth a record $18.4 billion in 2021.

The fund invests across the full credit spectrum from senior debt to opportunistic credit and will finance both LP and GP-led liquidity solutions. The fund received backing from institutional and private wealth investors across the US, Europe and Asia.

Pantheon’s global head of private debt, Rakesh Jain, said: “We see increasing investor interest in credit secondaries, due to the benefits of highly invested portfolios, high levels of diversification across company, industry, strategy and vintage year, attractive credit metrics, and shorter durations than what they might experience with other private credit investment alternatives.”

Pantheon said private debt secondaries form a key element in the firm’s evolution across equity, debt and infrastructure secondaries. Including its primary fund investments and co-investment strategies, the firm has $4.7 billion of assets under management or advice focused on private debt.