Pantheon to Launch European Vehicle –

SAN FRANCISCO – Pantheon Ventures was readying a European fund-of-funds, tentatively called Pantheon Europeon Fund II Ltd., just as its latest United States vehicle was nearing a final wrap.

The European fund, planned for launch this fall, will target $400 million but will be raised in euros, said Managing Director Gary Hiatt. Managed from Pantheon’s London headquarters, the vehicle’s limited partners will be from Europe, North America, Asia and the Pacific Rim, and it will invest in European venture capital and buyout partnerships.

The new fund is a follow-up to 1997’s Pantheon European Fund Ltd. (VCJ, December 1997, page 29), an ECU-denominated fund totaling about $240 million that is about 80% committed, Mr. Hiatt said.

Meanwhile, U.S.-focused Pantheon Ventures III had amassed $445 million and at press time was awaiting one more potential limited partner to bring the total to $455.8 million, Mr. Hiatt said. Pantheon III was launched in mid-1998 with a $300 million target (VCJ, September 1998, page 21) and was the London, Honk Kong and San Francisco-based firm’s first vehicle to target U.S. investors.

By mid-July, about one-third of Pantheon III was invested in 15 private equity funds, including most recently Centennial Fund V, Menlo VIII, Great Hill Partners and Advent Atlantic and Pacific IV, Mr. Hiatt said.

Pantheon III also has backed funds managed by Summit Partners, Weston Presidio Capital, Worldview Technology Partners, Polaris Venture Partners, InterWest Partners, Geocapital Partners, Advanced Technology Ventures, Thomas H. Lee Co. and Thoma Cressey Equity Partners (VCJ, May, page 21).

Mr. Hiatt said the fund likely would be half committed by the middle of the third quarter.

He declined to name limited partners but said slightly more than half the vehicle’s capital came from public and private pensions, with the remainder coming from endowments, foundations and a smattering of families.