(Bloomberg) — Goldman Sachs Group Inc.’s Petershill unit, which specializes in buying stakes in alternative asset managers, plans to list a new investment vehicle in London that could be valued at more than $5 billion.
Petershill will place minority stakes in 19 private equity, hedge funds, 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 vehicle will issue shares worth around $750 million as well as sell existing shares.
The entity, to be called Petershill Partners, will hold stakes in companies managing $187 billion in assets. These include Accel-KKR, Francisco Partners, Riverstone Holdings LLC, Caxton Associates LP and LMR Partners LP, according to the statement. The unit will not include a more recent investment in Permira.
Bloomberg News last month reported Petershill’s plans to list a permanent capital vehicle. Based on recent industry multiples, the unit’s valuation could exceed $5 billion, people familiar with the matter said, asking not to be identified discussing confidential information.
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.
PE Boom
Petershill Partners posted distributable earnings of $310 million for the 12 months ending June 30 and has appointed Standard Chartered Plc Deputy Chairman Naguib Kheraj as its chair.
The IPO will establish a pool of permanent capital and align Petershill with its investment targets for the long term, co-head Ali Raissi said in the statement. “We would continue to support the growth of leading alternative asset managers whose best days are ahead of them, whilst 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 rivals like Blackstone Inc. and Dyal Capital have also raised funds dedicated to the strategy. While Petershill has chosen to list some assets in a format similar to that of a real estate investment trust, Dyal in May went public in a merger with Owl Rock Capital via a special-purpose acquisition company.
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., Goldman Sachs and JPMorgan Chase & Co. as joint global co-ordinators for the London listing. BNP Paribas SA and UBS Group AG are bookrunners, according to the statement.
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