Pantheon – the private equity arm of multi-manager specialist Russell Investment Group – has managed Pip since its launch in 1987. The trust, which is available to retail investors through a savings scheme, takes a fund of funds approach. It invests globally in private equity funds and occasionally makes direct investments in private equity companies.
Pip invests in a combination of new private equity funds and in more mature portfolios through shares on the secondary market.
The underlying funds are usually aimed at institutions and seeks minimum investment levels of at least $10m.
Pantheon Ventures managing partner Andrew Lebus says: “Funds of funds are a lower risk way of investing in anything – they provide a good diversity of manager and strategies.
“The difference in performance between the best and worst private equity funds is huge.
“We are able to select funds that are best at operating in particular strategies, with specialist skills to bear on the companies they buy.
Lebus adds: “We are buying a portfolio of specialist private equity funds around the world, which is different to a generalist portfolio.”