Pantheon Infrastructure has raised an “impressive” £400m making it one of the largest IPOs in the UK investment trust space.
The new investment trust had been targeting £300m but instead was oversubscribed and hit its maximum size of £400m. It will target total net asset value returns of 8-10% a year by investing in equity and equity-related investments in private infrastructure assets.
The £400m raised was described as an “impressive result”, in an analyst note from Numis.
“We believe Pantheon Infrastructure would have been helped by the strong reputation of Pantheon and targeting in-vouge assets classes, as well as the use of co-investments which should be attractive from a fees perspective,” the note said.
Pantheon runs $71bn in private equity, infrastructure, real assets, private debt and real estate.
The investment trust will target digital infrastructure (wireless towers, data centres, and fibre-optic network), renewables and energy efficiency (smart infrastructure, wind, solar, and sustainable waste), power and utilities (transmission and distribution networks, regulated utility companies and efficient conventional power assets), transport and logistics (ports, rail, roads, airports and logistics assets) and social and other (education, healthcare, government and community buildings).
The global portfolio will focus on developed OECD markets, primarily in Europe and North America, alongside 5-15% in the Asia-Pacific region.
It will not invest in coal, oil, upstream gas, nuclear energy or mining sectors.
Pantheon Ventures partner Richard Sem (pictured) said private capital had an important role in “adapting and creating the infrastructure that we require for a sustainable future”. Pantheon Infrastructure would allow public market investors to access these opportunities, Sem said.
“Through our network, the Pantheon platform benefits from favourable access to a high volume of quality assets, with downside protected cash flows, strong ESG credentials, and positive exposure to secular changes in society.”
See also: Investment trusts raise record £8.7bn in 2021 so far
