Petershill Partners, Goldman Sachs’ £ 3.6 billion investment vehicle, confirms intention to float in London
- Petershill plans to raise £ 542million by issuing new IPO ordinary shares
- Founded 14 years ago, Petershill owns shares in 19 alternative asset companies
- There has been a boom in new companies listed on the London markets this year
An investment group created by banking giant Goldman Sachs has confirmed its intention to list on the London Stock Exchange.
Petershill Partners, owner of a minority stake in several alternative asset companies, could be valued up to $ 5bn (£ 3.6bn) on the list, allowing it to become a stand-alone company.
The group also plans to raise $ 750 million (£ 542 million) by issuing new ordinary shares from the initial public offering to buy more stakes in the alternative asset management sector.
Petershill Partners, owner of a minority stake in several alternative asset companies, could be valued at up to $ 5 billion (£ 3.6 billion) on the list
The company has engaged Merrill Lynch International, Goldman Sachs International and JP Morgan Securities plc as joint global coordinators, while BNP PARIBAS and UBS AG London Branch have been appointed joint bookkeepers for the offering.
The industry is expected to see its assets under management increase by a compound annual growth rate (CAGR) of 10% between 2020 and 2025, data provider Preqin has estimated.
Established 14 years ago, Petershill owns shares in 19 alternative asset companies which collectively manage $ 187 billion in assets and are owned by clients of Goldman Sachs Asset Management (GSAM).
Its holdings include Silicon Valley-based Industry Ventures, which has invested in Facebook and Alibaba, private equity group Accel-KKR, and Caxton Associates, one of the world’s oldest hedge funds.
Its distributable income fell from $ 108 million in 2018 to $ 243 million two years later, while in the 12 months ending at the end of June of this year, the equivalent figure was $ 310 million.
If the IPO went ahead, it would make the company the largest listed alternative firm in London and come in the midst of a significant boom in new companies listed on the capital stock market.
Ali Raissi, co-director of the Petershill Group, said the IPO is “a natural next step in the evolution of the offering to partner companies, establishing a permanent source of capital and demonstrating strategic alignment and partnership. long-term”.
Parent Company: Petershill owns shares in 19 alternative asset companies which collectively manage $ 187 billion in assets and are owned by clients of Goldman Sachs Asset Management (GSAM)
“We will continue to support the growth of the leading alternative asset managers whose best days are ahead, while allowing their management teams to maintain their strategic focus, dynamism and independence.”
In recent years, investors have turned to alternative investments in record numbers due to low interest rates from banks. But some models have collapsed due to the complexity of investing or the lack of unrealistic returns.
Petershill said his model would create a very diverse business, focusing on the fastest growing areas of the alternative investment industry, and backing the funds he has invested in with a large flow of cash from the stock market.
The group’s new chairman, Naguib Kheraj, said: “With a listing in London, Petershill Partners would offer institutional investors in the public market a unique opportunity to access stakes in a number of private alternative asset managers from foreground”.
Listing: London is seeing a big boom in new publicly traded companies, such as the payment app Wise and online greeting card seller Moonpig
He added: “Through Petershill Partners, investors would benefit from Goldman Sachs’ expertise as an operator, both in terms of managing the existing portfolio and developing opportunities to make further future investments in it. rapidly growing sector.
Other big companies to feature on the LSE this year include the payment app Wise, online greeting card seller Moonpig, bootmaker Dr Martens and food delivery giant Deliveroo.
Another was private equity firm Bridgepoint Capital, which saw its share price rise by more than a fifth on the day it opened on the London Stock Exchange.
At the same time, foreign private equity firms are buying up more and more London-listed companies due to their relatively cheap price resulting from the Brexit vote which drastically dropped the value of the pound and the coronavirus pandemic.
Blackstone bought out real estate development firm St Modwen and private jet services group Signature Aviation, and the road services firm AA was bought by Warburg Pincus and TowerBrook Capital Partners.