Investment trust Pantheon Infrastructure (PINT) is seeking to float on the London Stock Exchange at an issue price of 100p per share.
Looking to raise £300m from institutional and retail investors, the trust will use the cash injection to invest in different industries, from digital infrastructure such as data centres and fibre-optic networks to utility companies and transport and logistics assets.
Private equity Pantheon Ventures – which since 2015 has carried out 34 co-investment transactions for a total of $2.7bn and an 18.5 per cent gross internal rate of return – will become PINT’s investment manager.
“We are very pleased to announce the launch of PINT, which is an exciting opportunity for investors to gain access to attractive risk-adjusted returns from infrastructure assets that benefit from long-term contractual cash flows, and have a positive correlation to inflation and favourable exposure to secular changes in society,” said PINT’s chairman Vagn Sorensen.
“Pantheon has a proven track record of delivering strong returns by applying a disciplined investment process across a globally diversified portfolio and we are confident that their approach, which focuses on co-investing, thus minimising fees while maximising the number of investment opportunities it can access, offers a compelling and differentiated opportunity for investors.”
PINT’s total net asset value (NAV) total return per share is expected to be between eight and 10 per cent per year, while the firm’s initial divided will increase from 2p per share until the end of 2022 to 4p from 2023.
“There is a growing and substantial requirement for investment in a number of different infrastructure sectors globally, where private capital is playing an increasingly important role in adapting to key global trends such as the transition to a low-carbon economy,” said Pantheon’s partner Richard Sem.
“The strategy is expected to deliver a robust income stream and capital growth from creating value in the underlying portfolio companies.”