Pantheon Expands US Private Wealth Offering With Innovative Private Credit Secondaries Fund

Pantheon, a global private markets investor, has announced the filing for registration of an innovative evergreen private credit fund called the AMG Pantheon Credit Solutions Fund (PSECC). This fund will be the first of its kind to offer a private credit secondaries-focused investment strategy to the US private wealth market.

The PSECC fund aims to provide investors with a diversified exposure to core private credit, covering various managers, vintage years, industry sectors, and companies. Leveraging Pantheon’s expertise and global platform in private credit, the fund will acquire and build a carefully selected portfolio of high-quality, performing private credit at discounted pricing. This approach has the potential to generate strong risk-adjusted total returns and an attractive income stream for investors.

The launch of PSECC reflects the rapid growth of private markets secondaries, driven by the substantial expansion of private credit over the past decade. There is an increasing demand for liquidity and portfolio management solutions from both fund managers and investors. By focusing on private credit secondaries, the fund aims to benefit from attractive discounts that can enhance returns and mitigate potential defaults. Additionally, it offers greater diversification, shorter durations, and more immediate distributions compared to other private credit alternatives.

Rakesh (Rick) Jain, Pantheon Partner and Global Head of Private Credit, expressed excitement about extending the firm’s position in private credit secondary solutions to the US private wealth market. He sees a strong opportunity for investors to capitalize on the supply-demand imbalance of capital and expertise in this space, similar to the evolution of secondaries across private equity, infrastructure, and real assets.

Pantheon has been investing in private markets secondaries since 1988 and was a pioneer in credit secondaries, launching the world’s first dedicated fund in 2018. With over $3 billion in client assets dedicated to private credit secondaries, the firm is recognized as one of the largest and most experienced investors in the field. Pantheon’s broader private credit practice manages $6.7 billion in assets under management or advice, covering the entire credit spectrum.

The AMG Pantheon Credit Solutions Fund will be the second vehicle launched within Pantheon’s US Private Wealth division, joining the AMG Pantheon Fund, one of the largest and most established registered private equity funds in the US. The firm’s private wealth platform manages over $5.8 billion globally across a range of evergreen solutions.

Michael Hutten, Pantheon Partner and Head of US Private Wealth, highlighted the increasing demand for private credit funds from the private wealth community. He believes that private credit secondaries, with their unique combination of diversification, income, and total returns, offer a compelling and differentiated allocation solution for investors.

AMG, Pantheon’s majority owner, expressed excitement about expanding its long-term partnership with Pantheon in providing the adviser community with access to differentiated exposures through innovative private markets solutions. Rachel Jacobs, Head of Client Solutions at AMG, specifically mentioned the AMG Pantheon Fund and the upcoming private credit secondaries strategy, PSECC, as examples of these innovative offerings.

Overall, Pantheon’s filing for registration of the AMG Pantheon Credit Solutions Fund marks an important step in bringing private credit secondaries-focused investment strategies to the US private wealth market. With Pantheon’s extensive experience and expertise in private markets secondaries, the fund is well-positioned to deliver strong risk-adjusted total returns and attractive income streams to investors.

Leave a comment