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Goldman Sachs to float Petershill Partners on LSE at £3.6 billion

Goldman Sachs to float Petershill Partners on LSE at £3.6 billion
Goldman Sachs to float Petershill Partners on LSE at £3.6 billion

Goldman Sachs, the global investment bank and financial services firm headquartered in New York, is reportedly planning to float a novel investment unit, Petershill Partners, on London Stock Exchange.

According to reports, the move could value the division at £3.6 billion, primarily owing to an ongoing boom within the private equity market.

Petershill Partners is anticipated to raise around $750 million (£542 million) with the help of an initial public offering (IPO), which would allow institutional investors like pension funds to participate in the profits of private equity and hedge funds without taking direct stakes within those companies.

According to sources familiar with the matter, the unit owns minority shares in 19 alternative asset managers, including private equity firms, venture capital firms, and hedge funds, with total $187 billion worth of assets under management and is expected to be valued at $5 billion (£3.6 billion) after the IPO.

The announcement comes after Bridgepoint, the private equity firm behind Wiggle, Burger King's UK business, and fast-food chain Itsu, announced its plans for a £2 billion float on the London Stock Exchange back in June.

Petershill Partners will be made up of assets controlled by Goldman Sachs since 2007. The company's existing institutional stakeholders will sell 25% of their stake in the company and put them up for sale on the public market as part of the listing.

Meanwhile, as a part of this IPO, Goldman Sachs is not selling any of its shares. However, it will continue to control the portfolio on behalf of investors.

The move to float the portfolio comes amid a surge in demand for private equity investments as investors seek higher financial returns in the face of low-interest rates.

The surge has been fueled in part by low-interest rates, as they have made it inexpensive for private equity enterprises to borrow money and fund their takeovers, as well as lower-than-usual company prices. British companies, for example, have become attractive targets in recent months, since their value has been reduced by both the Covid-19 pandemic and Brexit.

Source credit: https://www.theguardian.com/business/2021/sep/06/goldman-sachs-ipo-petershill-partners

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