Goldman Sachs Group Update
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According to people familiar with the matter, Goldman Sachs plans to include Petershill Partners in a transaction that will value the Wall Street bank’s shares in alternative asset management companies to more than $5 billion amid the global private equity investment boom.
Petershill Partners owns minority stakes in 19 alternative companies with total assets under management of US$187 billion. The company said on Monday that it is considering an initial public offering on the London Stock Exchange. The listing will give open market investors an opportunity to understand its performance and make it the largest listed alternative company in London.
When Petershill was founded in 2007, it was the first in a series of groups that aimed to acquire shares in private equity and alternative investment management companies, seeking to benefit from the recurring income stream of management and performance fees they generate. Other players in this field include Dyal Capital, Blackstone’s strategic capital holding company, and AlpInvest Partners.
The planned Peter Hill IPO further proves that Goldman Sachs CEO David Solomon is determined to develop the U.S. bank in areas that charge regular fees such as asset and wealth management, while reducing its reliance on volatile businesses such as stock and bond trading.Last month purchase Acquired the asset management department of the Dutch insurance company NN Group for 1.6 billion euros.
Investors have been increasing their exposure to private equity and private debt to seek returns in a low interest rate environment. According to data from data provider Preqin, the assets of the entire alternative industry are expected to grow at a compound annual growth rate of 9.8%, from USD 10.7 trillion in 2020 to USD 17.2 trillion in 2025.
According to the expected “IPO Intent” document, Petershill’s distributable income to partners increased from US$108 million in 2018 to US$243 million in 2020, and reached US$310 million in the 12 months ended June 30 .
Its 19 minority investments in alternative companies were previously managed by Goldman Sachs Asset Management. Petershill’s holdings include Caxton Associates (one of the world’s oldest and most famous hedge funds), Ross Turner’s Pelham Capital and technology acquisition company Accel-KKR.
According to the document, if it continues, the IPO plans to raise $750 million through the issuance of new common stock, and it will also sell existing common stock to achieve 25% of free float. People familiar with the matter said that the listing will make the entire business valued at more than $5 billion.
The company appointed an independent board of directors led by Chairman Naguib Kheraj, former Barclays Finance Director and Chairman of Professional Pension Insurance Company Rothesay Life and Vice Chairman of Standard Chartered Bank.
In its 14-year history, Petershill has raised and deployed $8.5 billion in funds, involving a wide range of strategies, including private equity, private credit, private physical assets, and absolute returns.
About four-fifths of Petershill’s assets belong to private market managers, and the rest belong to hedge fund strategies. Most of the new acquisitions are expected to occur in private capital management companies, whose targets are strategies such as technology, healthcare, and ESG, which may find opportunities as the world rises from the pandemic.
Ali Raissi, co-head of Petershill Group, said in a statement, “This IPO will be the natural next step in the process of providing products to partner companies, establishing a permanent source of capital, and demonstrating the development of long-term strategic alliances and partnerships.”
Petershill’s co-head Robert Hamilton Kelly said in a statement that the transaction “will provide shareholders with alternative industry growth and profitability” and expose investors to “a high-yielding cash-generating company whose economy comes from high-performance companies.” Based on the stable, long-term cost-related benefits provided by long-term assets”.
The Financial Times reported last month that the five largest listed private capital companies in the United States have already More than tripled Since the deep market sell-off last year, the comprehensive value has been rising because investors have been trying to benefit from the huge fees earned in the boom of unlisted assets.
In July, Bridgepoint Advisers, headquartered in the UK 300 million pounds raised In another London IPO, the stock of the acquiring group has risen 12% since then.