Petershill, a private equity unit of Goldman Sachs that takes minority stakes in alternative investment firms including hedge funds and private equity managers, has unveiled plans for a new publicly-traded vehicle on the London Stock Exchange.
Petershill, a private equity unit of Goldman Sachs that takes minority stakes in alternative investment firms including hedge funds and private equity managers, has unveiled plans for a new publicly-traded vehicle on the London Stock Exchange.
Goldman is preparing an initial public offering (IPO) for the new unit, Petershill Partners, which will provide direct minority equity investments and acceleration capital for hedge funds and private equity companies.
Petershill currently holds minority stakes in 19 private equity, hedge fund and other alternative asset management firms, which together have some USD187 billion of aggregated assets under management and which were previously held in private funds managed by Goldman Sachs Asset Management (GSAM).
These assets – which include holdings in high-profile hedge fund firms Caxton Associates and LMR Partners, as well as tech-focused private equity outfit Francisco Partners – will be rolled into the new publicly-listed company.
The deal would involve the issuance of some USD750 million of new shares, along with the sale of existing shares, according to a London Stock Exchange filing. The new unit could be worth around USD5 billion, media reports on Monday suggested.
Petershill Partners will be a fully independent standalone company run by the GSAM team which was founded in 2007 as the first minority stake acquirer in alternative asset managers, the LSE announcement said. In the past, Goldman Sachs Asset Management’s original Petershill Fund I held minority positions in a number of well-known hedge fund managers, including Winton Capital and CapeView Capital.
Goldman described the plan as a “distinctive and compelling” alternative asset management industry proposition.
It pointed to a “significant and growing” AUM opportunity and private market investment universe sized at USD1.2 trillion, a diversified global investment group, and a “proven track-record of creating ‘win-win’ strategic partnerships” across the hedge fund and private equity spectrum, with the ability to “anticipate thematic trends and pivot investment strategies over time into new, fast-growing opportunity sets.”
Naguib Kheraj, non-executive chair of Petershill Partners, said the London listing would make available to public market institutional investors a “unique opportunity” to access stakes in a number of leading privately owned alternative asset managers.
Ali Raissi, co-head of the Petershill group within Goldman Sachs, described the IPO as a “natural next step”, adding Petershill has established itself as a “partner of choice in the private capital sector” over the past 14 years.
Robert Hamilton Kelly, co-head of the Petershill group within Goldman Sachs, said: “We believe our long track record of creating win-win partnerships and the extremely high barriers to entry in this industry position us well to continue to deliver growth and generate attractive returns for all stakeholders.”
