Pantheon Launches Third US Fund-of-Funds

Pantheon Group, which recently wrapped its first European fund-of-funds on ecu 214 million and is approaching a close over target on its second Asian fund-of-funds, began marketing its third US fund-of-funds in April. In contrast with the group’s two earlier US-focused vehicles, which were raised from non-US LPs, Pantheon USA Venture Partners III aims to tap domestic investors for half its $300 million (ecu 275 million) goal.

Gary Hiatt, who joined Pantheon last year from San Francisco City & County Employees Retirement System, will play an instrumental role in marketing the fund to US investors – mainly endowments, foundations and family trusts – working alongside managing director David Braman and vice president Jay Pierrepont.

At its target level the new fund-of-funds will weigh in at more than twice the size of its $130 million 1995 predecessor. The vehicle is slated for investment in venture funds, which will comprise some 45% of its eventual portfolio; buyout funds, which will absorb a further 40%; and special situations, including secondary positions. The bulk of Pantheon USA Venture Partners III’s buyout allocation will be devoted to funds from established management groups, but Pantheon may also consider making commitments to a small number of first-time vehicles.