Interim Management Statement

7th May 2014


                   Pantheon International Participations PLC                   
        Interim Management Statement (Unaudited) for the Quarter Ended         
                                31st March 2014                                


Pantheon International Participations PLC ("PIP" or the "Company") presents its
interim management statement for the period from 1st January 2014 to 31st March
2014. This constitutes the Company's second interim management statement in the
financial year ending 30th June 2014, as required by the UK Listing Authority's
Disclosure and Transparency Rule 4.3.
 
The Company published an unaudited Net Asset Value ("NAV") as at 31st March 2014
on 24th April 2014. This interim management statement summarises the information
as at 31st March 2014 and any further developments up to 2nd May 2014.
 

Investment Objective

PIP's primary investment objective is to maximise capital growth by investing
in a diversified portfolio of private equity funds and directly in private
companies.


General Information

                                     31/03/2014     31/12/2013   Change 
                                                                        
NAV per share                          1,344.1p       1,303.9p      3.1%
                                                                        
Ordinary share price                   1,100.0p       1,028.0p      7.0%
                                                                        
Redeemable share price                 1,055.0p       1,012.5p      4.2%
                                                                        
Net asset value                           £898m          £872m      3.0%
                                                                        
Outstanding commitments                   £188m          £188m      0.0%
                                                                        
 
 
Performance
The NAV per share at 31st March 2014 was 1,344.1p, representing an increase
of 40.2p, or 3.1%, relative to the NAV per share at 31st December 2013.
 
Portfolio gains added 48.7p per share in the quarter, led by value increases
in the venture & growth portfolio. Investment income increased the NAV per
share by 3.9p. Adverse currency movements decreased NAV per share by 7.7p and
expenses further decreased it by 4.7p.
 
The Company's ordinary share price increased during the quarter by 7.0% to
1,100.0p, whilst the price of its redeemable shares increased by 4.2% to
1,055.0p at 31st March 2014. Subsequent to the quarter end, up until the
market close on 2nd May 2014, the share price of the ordinary shares increased
to 1,108.0p and the redeemable share price remained unchanged.
 
 
Portfolio Cash Flow
PIP's portfolio generated positive net cash of £38.8m in the quarter before the
cost of new commitments. Distributions amounted to £46.5m and calls from existing
commitments totalled £7.7m.


Distributions in the quarter included:

*   £2.8m from Providence Equity Partners in relation to the sale of digital
    automotive marketplace operator AutoTrader Group to Cox Enterprises.
 
*   £2.3m from Tricor Pacific Capital in relation to the sale of Golden Boy Foods,
    a leading Canadian manufacturer, marketer and distributor of private label and
    branded food products, to Post Holdings at a 3.1x cost multiple.

*   £2.1m was received from Hutton Collins following the refinancing of Caffè Nero.
 
*   £2.0m from Mid Europa Partners in relation to the sales of TV, broadband and
    telecom provider SBB/Telemach Group at a cost multiple of 2.5x, and mobile
    telecom services provider T-Mobile Czech Republic to Deutsche Telekom.

*   £1.0m was received from Chequers Capital in relation to the recapitalisation of
    Accelya, a provider of business process outsourcing services for the airline
    industry, which realised a 3.7x cash return.

*   £0.6m from Summit Partners Europe in relation to the recapitalisation of security
    software developer AVAST Software BV, an investment that has to date realised a
    2.3x investment cost multiple.


New Commitments

PIP invested a total of £17.3m in new commitments in the quarter,
which consisted of the following:

*   Two secondary commitments totaling £12.1m in European small buyout
    funds and global development funds.
 
*   A primary commitment of £2.4m to Clayton, Dubilier & Rice Fund IX,
    a large buyout fund based in the USA.
 
*   A co-investment of £1.7m alongside ABRY Partners in Aegis Sciences
    Corporation, a specialty toxicology laboratory providing a range of
    testing services.

*   A co-investment of £1.1m alongside Apollo Global Management, LLC in
    Athene Holdings, a provider of fixed annuities in the USA.

Since the quarter-end PIP has completed a £3.7m primary commitment to
a European venture fund.
 
For its new private equity investments, the Company will continue to emphasise
secondary transactions, supplemented with co-investments alongside leading private
equity managers selected by Pantheon. The Company will also look to make primary
commitments on a targeted basis for portfolio construction purposes.
 
The pipeline of investment activity is likely to lead to the completion of
further transactions in the coming quarter. This includes one new secondary
which is at an advanced stage, pending completion that is scheduled at the
end of June. Beyond that the pipeline of secondaries has increased since the
start of the year, and activity is expected to continue to pick up during the
second quarter.
 
 
Share Buybacks

There were no share buybacks during the quarter.
 
From August 2011, when the Company started buying back shares, up to
31st March 2014, it has acquired, for investment purposes, approximately
11.5% of its outstanding shares.
 
After the quarter end PIP bought back for cancellation 250,000 ordinary shares
at a price of 1,090p per share, which represented a discount of approximately
16% to the 31st December 2013 NAV per share, and 240,000 redeemable shares at
a price of 1,050p which represented a discount of approximately 19% to the 
31st December 2013 NAV per share.
 
The Board expects the Company's mature portfolio to remain cash generative and
continues to believe that share buybacks are an effective means of enhancing NAV
per share as an alternative to new investments when the Company's shares are
trading at a wide discount.


Cash Balance and Remaining Facilities

As at 31st March 2014, PIP had cash balances equivalent to a total of
approximately £95m.
 
In addition, the Company's multi-currency revolving credit facility agreement 
("the Bank Loan Facility"), comprising an $82m US dollar facility and a €57m 
euro facility, was completely undrawn. The Bank Loan Facility expires in June 2015.
 
Based on exchange rates at 31st March 2014, PIP's total available liquid financing
capacity, comprising its cash and bank facility, stood at £191m.
 
 
Undrawn Commitments

Undrawn commitments to investments stood at £188m at 31st March 2014, calculated using
exchange rates at that date. Drawdowns of undrawn commitments typically occur over a
period of several years.


Historical Total Return Performance to 31st March 2014¹


                                                                          Since 
                                 1 Year   3 Years   5 Years   10 Years Inception

                                      %    % p.a.    % p.a.     % p.a.    % p.a.

NAV per share                      4.0%      8.5%      7.1%       9.4%     11.3%
                                                                          
Ordinary share price               2.3%     14.9%     39.7%       9.0%     11.0%
                                                                           
FTSE All-Share Total Return        8.8%      8.8%     16.4%       8.6%      8.1%
                                                                          
MSCI World (sterling) Total        9.1%      9.5%     15.3%       8.5%      7.0%
Return                                                                    
                                                                          

 

¹PIP was launched on 18th September 1987. The performance figures for PIP
assume reinvestment of dividends, capital repayments and cash flow from
warrants.

 
Valuations

PIP's valuation policy for private equity funds is based on the latest accounts
produced by the managers of the funds in which PIP has holdings. In the case of
the valuation as at 31st March 2014, the majority of valuations (accounting for
circa 94% by value) are dated 31st December 2013. Private equity funds may
contain a proportion of quoted shares from time to time, for example where the
underlying company investments have been taken public but the holdings have not
yet been sold. The quoted market holdings at the date of the latest fund accounts
are reviewed and compared with the value of those holdings at the period end. If
there has been a material movement in the value of these holdings, the valuation
is adjusted to reflect this.


Foreign Exchange Exposure

At 31st March 2014, the value of the private equity investment assets stood at
£803m. Of the private equity investment assets held by PIP, looking through
feeders and funds of funds, 68% were represented by funds reporting values
denominated in US dollars, 24% denominated in euros, 5% denominated in sterling
and 3% denominated in other currencies. Of the 68% of investment assets
denominated in US dollars, approximately 3% (expressed as a proportion of PIP's
total portfolio) are invested in funds investing mainly in Europe and
approximately 11% (expressed as a proportion of PIP's total portfolio) in funds
investing mainly in Asia. In addition to the funds reporting values denominated
in sterling, many of the euro-denominated funds have investments in the UK.

Other than as described in the paragraphs above the Board is not aware of any events
during the period from 31st March 2014 to the date of this statement that would have
a material impact on the financial position of the Company.
 
 
Tom Bartlam
 
Chairman
6th May 2014
 
 
The views, information and data in this announcement should not be deemed as a
financial promotion or recommendation. Shareholders are advised that this statement
is unaudited.

                               ENDS                                      

 

For more information please visit PIP's website at www.pipplc.com or contact:

Andrew Lebus or Alexis Barling                         
Pantheon                                             
0207 484 6200                          

Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of this announcement.