Goldman Sachs plans to conduct an IPO with the $5 billion Petershill division

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Goldman Sachs Group Update

According to people familiar with the matter, Goldman Sachs plans to list its Petershill Partners unit on the occasion of the global private equity investment boom. The transaction will value Wall Street Bank’s alternative assets business to more than $5 billion.

Petershill owns a minority stake in 19 alternative companies, with total assets under management of US$187 billion, and 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.

The document stated that if it continues, the IPO plans to raise $750 million through the issuance of new common stock, and 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 has appointed an independent board of directors led by Chairman Naguib Kheraj, former Barclays Chief Financial Officer 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 development of providing products to partner companies, establishing permanent capital sources, and demonstrating 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-yield cash-generating company whose economy comes from a high-performance company.” Based on the stable and 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 as investors try 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.

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