Pantheon launches private credit fund for US market
Pantheon has launched a new private credit secondaries-focused fund for the US private wealth market.
The global investor said that the AMG Pantheon Credit Solutions Fund (PSECC) will build “a diversified portfolio of high-quality private credit investments, with the potential to generate strong, risk-adjusted total returns and an attractive income stream.”
The fund will offer investors private credit exposure, diversified by manager, vintage year, industry sector and company.
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Pantheon highlighted the rapid evolution of private markets secondaries, fuelled by the substantial growth in private credit over the past decade. Private markets secondaries – essentially a secondary market for private debt – service increasing demand for liquidity from investors.
“We are excited about extending our position in private credit secondary solutions to this important and growing client channel,” said Rakesh (Rick) Jain (pictured), Pantheon partner and global head of private credit.
“We see 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.”
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Pantheon has more than $3bn (£2.44bn) in client assets dedicated to private credit secondaries, as part of a wider private credit practice which has $6.7bn in assets under management or advice.
PSECC is the second vehicle launched within Pantheon’s US private wealth division and will sit alongside the AMG Pantheon Fund, a private equity fund with around $2.3bn in assets under management.
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“We have heard from the private wealth community that demand for private credit funds is increasingly focused on addressing concerns around inflation, rising rates, credit defaults and the continued need for enhanced income,” said Michael Hutten, Pantheon partner and head of US private wealth.
“We believe the unique combination of diversification, income and total returns in private credit secondaries offers a compelling, differentiated allocation solution for investors.”