Goldman’s Petershill to list $5 billion vehicle in London

According to a document filed with the London Stock Exchange on Monday, Petershill will hold a minority stake in 19 private equity, hedge funds and other alternative managers in a structure that will later be listed in an initial public offering. The new Petershill vehicle will issue shares worth approximately $750 million as well as sell off existing shares.

The entity, called Petershill Partners, will hold a stake in the companies managing $187 billion in assets. These include Accel-KKR, Francisco Partners, Riverstone Holdings LLC, Caxton Associates LP and LMR Partners LP. The entity will not include a recent investment in Permira.

Bloomberg News last month reported Petershill’s plans to list a permanent capital vehicle. Based on recent industry multiples, the entity could be valued at more than $5 billion, people familiar with the matter said, asking not to be identified while discussing confidential information.

The planned listing comes amid a bumper period for alternative assets, particularly private equity, which has seen record inflows of new capital and an all-out deal wave since the middle of last year. The listing of a vehicle in London, where Petershill was founded, would follow the successful stock market debut of British private equity firm Bridgepoint Group plc, whose July IPO raised nearly $1.25 billion, according to data compiled by Bloomberg. . Shares of Bridgepoint are now trading 44% above its IPO price.

PE Boom

Petershill Partners posted distributable earnings of $310 million for the 12 months ended June 30 and appointed Standard Chartered plc’s vice president Naguib Kharaj as its chairman.

The IPO will establish a pool of permanent capital and align Petershill with its investment goals for the long term, co-head Ali Raisi said in the statement. “We will continue to support the development of leading alternative asset managers whose best days are ahead of them, while allowing their management teams to maintain their strategic focus, drive and independence,” he said.

Petershill’s business of buying minority stakes in private equity firms is booming, and Blackstone Inc. And rivals such as Dial Capital have also raised funds dedicated to the strategy. While Petershill has chosen to list some properties in a format similar to a real estate investment trust, Dayal went public in May in a merger with OwlRock Capital through a special purpose acquisition company.

Goldman has expanded its alternative investment business in recent years as Chief Executive Officer David Solomon preached the benefits of stable fee-generating business lines. In August, the Wall Street firm agreed to buy the asset-management arm of Dutch insurer NN Group NV for 1.6 billion euros ($1.9 billion).

Petershill has appointed Bank of America Corp, Goldman Sachs and JPMorgan Chase & Co as joint global coordinators for the London listing. According to the statement, BNP Paribas SA and UBS Group AG are the Buchrunners.