Petershill Partners, named for a Goldman building opposite St Paul’s in the City, is selling a 25% stake in itself, expecting to raise $750 million in new money and allowing existing investors a chance to cash out.
The bulk of the rest of the equity is held by Goldman clients, the bank itself has less than 1%.
Petershill takes stakes in alternative investment managers – 19 of them so far – and gives them strategic advice to grow.
Those 19 firms have assets of towards $190 billion. The float will give ordinary investors access to funds normally only available to very large players such as pension and hedge funds.
Petershill was founded in 2007 and sits within Goldman Sachs Asset Management in London and New York. Its rapid growth and decision to list in London is a boost to the City’s claims to be at the heart of the alternative investment market, a burgeoning industry worth many trillions of dollars.
The co-heads of the business are Ali Raissi and Robert Hamilton Kelly. A management committee atop them is chaired by Naguib Kheraj, the former Barclays Bank finance director.
The float will be overseen by Goldman itself, Merrill Lynch and JP Morgan – a rare example of Goldman handing fees to its most deadly rivals. BNP Paribas and UBS are also on the ticket.
Kheraj, said: “Through a London listing, Petershill Partners would make available to public market institutional investors a unique opportunity to access stakes in a number of leading privately owned alternative asset managers.”
He added: “Through Petershill Partners, investors would benefit from the expertise of Goldman Sachs as its operator, both in terms of managing the existing portfolio and developing opportunities to make additional future investments in this rapidly growing industry.”
Raissi said: “Over the past 14 years, the Petershill group within Goldman Sachs has established itself as a partner of choice in the private capital sector.
“This IPO would be a natural next step in the evolution of the offering to partner firms, establishing a permanent capital source, and demonstrating long-term strategic alignment and partnership.”