Rivkin Securites’ Wholesale Funds are available to wholesale investors only. Therefore, Rivkin will not issue a financial services guide, product disclosure statement, or any other retail documentation in relation to this service.
With markets swinging from one headline to the next, and traditional income sources like term deposits struggling to outpace inflation, more investors are asking: Where can I find stable income without taking on too much risk? That’s where the Pantheon Global Credit Secondaries Fund (PGCS) comes in.
Built for today’s income-hungry, risk-conscious investor, PGCS offers access to a world that was once only open to institutions: private credit secondaries. In simple terms, it’s about buying performing private loans at a discount, generating both income and growth, while benefiting from diversification and professional management.
Why Private Credit, and Why Now?
Private credit has become one of the fastest-growing corners of the investment world. With global banks lending less, private managers have stepped in, offering loans to mid-sized companies and earning consistent returns in the process. But getting into this space has traditionally meant long lockups and limited access. PGCS changes that.
Rather than funding new loans (which can be slower and more uncertain), PGCS focuses on secondary opportunities—buying into existing, seasoned portfolios of loans from other investors. These loans are often trading at discounts due to liquidity needs, not quality issues.
Market growth provides a significant opportunity.
Private credit AUM ($tn) 2017-2029 Forecast, up ~130% since 2017.
The Advantage of Buying at a Discount
PGCS takes advantage of these pricing dislocations to build a portfolio with both immediate yield and capital growth potential. On average, Pantheon has purchased credit portfolios at around a 12% discount, unlocking returns in two ways:
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Yield – Income from loan repayments, currently targeting around 11.9% per annum.
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Growth – Capital appreciation as the discount unwinds and loans are repaid at or near face value.
Imagine buying a rental property that’s already paying rent, and you secure it for 10–15% below its true value. That’s effectively what PGCS is doing across thousands of loans and dozens of fund managers.
Pantheon’s historic effective discounts in Private Credit Secondaries
What Makes PGCS Stand Out
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Attractive Returns: A target return of 12-14% p.a. net of fees, with a target yield of 9-10%.
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Diversification: Exposure to thousands of underlying loans across geographies, industries, and managers.
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Defensive Positioning: Focused on senior secured loans, which sit at the top of the capital structure and offer stronger protection in downturns.
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Access with Flexibility: While not traded daily, PGCS offers quarterly redemption windows, giving investors more access than traditional private markets.
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Institutional Experience: Managed by Pantheon’s team of over 20 private credit professionals, with over $6.4 billion in credit AUM.
A Real-World Example: “Project Sunrise”
To illustrate how this works in practice, consider Project Sunrise, a recent investment in a portfolio of senior loans managed by Guggenheim Investment Management. These loans were already performing well, spread across 26 mid-sized U.S. companies, and offered a strong yield of over 13% at entry.
Pantheon was able to negotiate favourable terms, including a deep discount and additional yield through financing arrangements. It’s the type of deal that doesn’t show up on public markets and the type of opportunity PGCS is built to access.
Portfolio and key highlights
- 100% senior loans
- Diversified portfolio of hand-picked, performing credits
- high-quality GP with an established track record
- ~13% Loss-burdened underwritten Net IRR
- ~1.8x Underwritten TVPI
Net Underwritten IRR and TVPI is a mixture of contracted yield and embedded value at time of investment; this includes current pay, payment-in-kind (PIK) and value uplift.
Deal highlights
- The transaction objective was to provide liquidity to the GP and facilitate its transition to
managing more third-party capital (vs investing off B/S). - Diversified portfolio of 26 unique borrowers in the upper middle market, where the largest borrower comprises <7% of the total portfolio.
- Hand-picked, high-quality portfolio with strong credit metrics including W.A. revenue/EBITDA of $673m/$166m and W.A. leverage / LTV of 4.8x/35%.
- Access to immediate vehicle-level financing with attractive pricing of ~S+250bps, generating additional incremental portfolio yield.
Power of the Pantheon Platform
- Pantheon appointed as Co-Lead given its scale, expertise and track record in executing numerous credit-focused GP liquidity solutions.
- Direct dialogue with the GP resulted in the ability to drive the negotiation of terms, structuring and documentation.
- Extensive access to the GP and diligence materials, including the GP’s original IC memos, quarterly update memos and financials.
- Pantheon diligence angles – exposure to ~50% of the portfolio through investments held across the broader Pantheon platform.
Source: PSD III USD Case Studies
What Investors Should Know
This strategy is not without risk. Defaults can occur, and private credit does not have the same liquidity as listed assets. But PGCS is structured to reduce those risks by investing in seasoned, diversified, and discounted portfolios that are already generating income. For investors with a medium-to-long-term horizon, it can offer a powerful complement to equities and traditional bonds.
Final Thoughts
The current opportunity in private credit secondaries has been created by market volatility, not failing assets. That gives investors a rare window to enter a high-quality income strategy at attractive prices.
As pricing inefficiencies normalise, so too will return expectations. For those seeking reliable income, low correlation to equities, and capital growth potential, PGCS offers a sophisticated solution wrapped in a practical structure.
Now is the time to act. If you’re interested in adding resilient income and diversification to your portfolio, speak with our team about the Pantheon Global Credit Secondaries Fund today.
Access to Wholesale Investor Content
- Asset Test: You have net assets of at least $2.5 million
- Income Test: Gross income of at least $250,000 per annum over the past two financial years
- Professional Investor: You hold an Australian Financial Services Licence (AFSL) or control assets of at least $10 million.
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