SOLUTIO and Pantheon close EUR 250 million private debt secondary fund
Grünwald near Munich / London — The investment specialists SOLUTIO, Grünwald near Munich, and Pantheon, London, have successfully closed their first joint private debt secondary fund. SOLUTIO PREMIUM Private Debt I invests in funds that pool private corporate loans (private debt). This is the world’s first investment program with this focus that we know of. The final closing took place in February 2020 above the planned hard cap target volume of EUR 250 million.
Between 75 and 85 percent of the funds raised will be used for senior loans (senior debt), including unitranche, and between 15 and 25 percent for subordinated / other debt. The main focus is on loans for companies held by private equity companies (“corporate sponsored deals”). In the past, these have mostly reported low default rates.
SOLUTIO AG and Pantheon (UK) LLP operate the fund as partners in a joint venture. Pantheon is one of the leading fund of funds managers with a global presence (Americas, Europe, Asia) and manages $47 billion in client assets under management. The company has over 35 years of experience in private financial markets.
“What makes the investment approach special is that we get a clear information advantage by accessing Pantheon’s investment platform,” said SOLUTIO CEO Robert Massing (photo). “We gain insight into Pantheon’s extensive primary investments in private equity, allowing us to best explore opportunities in the secondary private debt space.”
“Private debt is becoming increasingly popular as an alternative asset class and is no longer a niche product. This is also shown by the growing secondary market in this segment,” said Ralph Günther, Partner and Head of DACH Region at Pantheon. Investments in the secondary market are generally less risky than in the primary market, as defaults and impairments have already been factored into the valuation. “Such more security-oriented transactions have a place in a well-diversified portfolio.” Pantheon has invested more than 1.5 billion euros in credit-oriented funds since 1997.
SOLUTIO PREMIUM Private Debt I invests in medium-sized companies (mid market) primarily in Europe and North America.
About SOLUTIO AG
SOLUTIO AG, founded in Munich in 1998, develops innovative investment concepts especially for the needs of German and Austrian institutional investors in the field of real assets. SOLUTIO initiates investment concepts exclusively together with managers who have a proven track record of above-average success. The company itself also participates in all investment concepts. Over the past two decades, SOLUTIO AG and its joint venture partners have launched a total of 16 investment programs in the asset classes of private equity, infrastructure and private debt with a total volume of over 4.7 billion euros.