Report
Mark Thomas

Pantheon International Plc (PIN): The real costs of public vs. PE ownership

In this note, we use some high-profile, mainly hostile, bid situations to illustrate the “agency” costs that can be a material drag on the performance of a listed equities portfolio. The strong corporate governance embedded in PE limits such costs, allowing i) a long-term focus (with a through-cycle perspective), ii) shorter periods of operational underperformance, iii) reduced risk of non-financially motivated acquisitions, and iv) aligned managers’ and shareholders’ interests. While PE is resource-intensive, we demonstrate how PIP avoids agency costs – a material factor in it delivering market-beating, post-cost returns since inception.
Underlying
Pantheon Resources

Pantheon Resources is engaged in the investment in oil and gas exploration and development. Co. operates in the U.K. through its parent undertaking and in the U.S. through subsidiary companies. Co. operates in two reportable segments: USA and Head Office. Non-current assets, income and operating liabilities are attributable to the USA, whilst most of the corporate administration is conducted through Head Office. As of June 30 2017, Co. held 58% working interest in the VOBM#1 & VOBM#2H wells in Polk County. Co. also held 75% working interest in VOBM#4 in Tyler County.

Provider
Hardman & Co
Hardman & Co

We are a rapidly growing, innovative corporate research & consultancy business, based in London, serving the needs of both public and private companies.

Our expert team of sector analysts and market professionals collectively have over 400 years of experience.  This depth of knowledge and a reputation for integrity have built trust with investors. With effective communication and precision distribution, we help companies disseminate their investment message to interested investors, as well as advise them on strategy.

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Analysts
Mark Thomas

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