Pantheon Bundles Private Equity Stakes Into $1 Billion CFO

Pantheon bundled a mix of private assets, including stakes in secondaries funds, co-investment strategies and a seeded private equity portfolio, into a $1 billion collateralized fund obligation, an increasingly popular way to raise cash without selling investments outright.

The CFO, a first for the firm’s private equity team, exceeded its target of $750 million, the firm said in a statement Thursday. Neuberger Berman, Vista Equity Partners, Dawson Partners and Carlyle AlpInvest have created similar investments, rated structures of debt and equity, in recent months.

As a prolonged deal rut has made exits elusive, demand for secondhand private assets ...