Goldman's Petershill to list $5-bn alternative asset portfolio on LSE

Petershill will place minority stakes in 19 private equity, other alternative managers into a structure that will then list in an initial public offering, according to a document filed with LSE.

Goldman Sachs Group Inc.’s Petershill unit, which specializes in buying stakes in alternative asset managers, plans to list a new investment vehicle that holds stakes in companies managing $187 billion in assets. 

Petershill will place minority stakes in 19 private equity and other alternative managers into a structure that will then list in an initial public offering, according to a document filed with the London stock exchange on Monday. The new Petershill will issue shares worth around $750 million as well as sell existing shares, according to the statement. 

The entity, to be called Petershill Partners, names Petershill’s stakes in Francisco Partners, Riverstone Holding LLC, and other long-term holdings, though will not include its more recent investment in Permira. The entity would likely make new acquisitions over time. Bloomberg News last month reported Petershill’s plans to list a permanent capital vehicle and seek a valuation of around 3 billion pounds ($4.2 billion). 

People familiar with the plans told Bloomberg News that based on recent industry multiples, the valuation could be above $5 billion.

The planned listing comes amid a bumper period for alternative assets, especially private equity, which has seen near record inflows of new capital and an exhaustive deal wave since the middle of last year. Listing 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 about $1.25 billion, according to data compiled by Bloomberg. Bridgepoint shares are now trading 44% above their IPO price. 

Petershill Partners has appointed Standard Chartered Plc Deputy Chairman Naguib Kheraj as its executive chair, according to the statement. Petershill Partners posted distributable earnings of $310 million for the 12-months ending June 30, it added.

Petershill’s business of buying minority stakes in private equity firms is booming, and rivals like Blackstone Inc. and Blue Owl Capital Inc.’s Dyal Capital arm have also raised funds dedicated to the strategy. 

Goldman has expanded its alternative investments business in recent years as Chief Executive Officer David Solomon preached the benefits of business lines generating steady fees. 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.’s Merrill Lynch International, Goldman Sachs, and JPMorgan Chase & Co.’s Cazenove unit to serve as joint global co-ordinators, according to the statement.