Petershill Partners plc
("Petershill Partners"), the diversified, global alternatives
investment group focused on private capital strategies, today
announces the sale of its stake in LMR Partners
Highlights
·
Petershill Partners has completed the sale of its
entire stake in LMR Partners back to LMR Partners' leadership team.
The total nominal consideration of up to $258 million consists of
$107 million upfront payment in cash paid at close, $111 million
deferred consideration and an earn-out payment of up to $40 million
in cash. The accounting fair value of the sale consideration at
closing is expected to be marginally above the carrying value of
the investment in LMR Partners as at 31 December 2023 which was
$195 million.
·
LMR Partners is a global multi-strategy and
absolute return investment firm predominately focusing on market
neutral and relative value strategies. LMR Partners was founded in
2009 and manages total assets of approximately $11
billion.
·
The transaction is consistent with Petershill
Partners' strategic focus on private market alternative asset
firms. Following completion of the transaction, more than 90% of
ownership weighted AUM will be focused on private capital
strategies.
·
The impact of the sale is expected to have an
immaterial impact on Partner Fee-Related Earnings given the
majority of earnings going forward from LMR Partners were expected
to consist of Partner Realised Performance Revenues (PRE).
Consequently, Petershill Partners does not anticipate any change to
its Full Year 2024 guidance in connection to the sale.
·
The Board continues to focus on capital efficiency
and will consider the most appropriate use for the proceeds
received from the sale.
Ali Raissi-Dehkordy and Robert
Hamilton Kelly, Co-Heads of the Petershill Business within Goldman
Sachs Asset & Wealth Management commented: "This transaction is
consistent with our strategy and further refines Petershill
Partners' focus on private market strategies, an area where we
continue to see attractive growth opportunities. We would like to
thank the entire LMR Partners team for the exceptional
collaboration since we became partners in 2018. We wish the team
all the best and continued success for the future".
ABOUT PETERSHILL PARTNERS
Petershill Partners and its
subsidiaries is a diversified, publicly listed, global alternatives
investment group focused on private equity and other private
capital strategies. Through its economic interests in a portfolio
of alternative asset management firms ("Partner-firms"), Petershill
Partners provides investors with exposure to the growth and
profitability of the alternative asset management industry.
Petershill Partners is operated by Goldman Sachs Asset Management
and is governed by a diverse and fully independent Board of
Directors (the "Board").
Through our Partner-firms, we have
exposure to $332 billion of total assets under management ("AuM"),
comprising a diverse set of more than 232 long-term private equity
and other private capital funds where capital is typically locked
in over a multi-year horizon. These underlying funds generate
recurring management fees and the opportunity for meaningful profit
participation over the typical 8+ year lifecycles of such funds.
Petershill Partners believes its approach is aligned with the
founders and managers of its Partner-firms and, as a result, allows
Petershill Partners to participate in these income streams in a way
that provides high-margin, diversified and stable cash flows for
its shareholders.
For more information, visit
https://www.petershillpartners.com.
Information on the website is not incorporated by reference into
this press release and is provided merely for
convenience.
ISIN: GB00BL9ZF303
BofA Securities is acting as sole
financial adviser and is one of the corporate brokers to Petershill
Partners
Merrill Lynch International ("BofA Securities"), which is
authorised by the Prudential Regulation Authority ("PRA") and
regulated by the Financial Conduct Authority ("FCA") and the PRA in
the United Kingdom, is acting exclusively for Petershill Partners and for no one
else in connection with the matters referred to in this
Announcement and will not be responsible to anyone other than
Petershill Partners for providing the protections afforded to its
clients or for providing advice in relation to the matters referred
to in this Announcement. Neither BofA Securities, nor any of its
affiliates, owes or accepts any duty, liability or responsibility
whatsoever (whether direct or indirect, whether in contract, in
tort, under statute or otherwise) to any person who is not a client
of BofA Securities in connection with this Announcement, any
statement contained herein or otherwise.
ABOUT LMR
LMR Partners is an investment manager
with offices in London, Hong Kong, New York, Zurich, Glasgow, Dubai
and Dublin employing over 300 people to manage total assets of
approximately $11 billion. The investment
approach deploys capital across liquid, market-neutral trading
strategies, employing both systematic and discretionary approaches.
LMR looks to find relative-value investment opportunities within
equity, fixed income, credit, volatility, commodities, and
event-driven markets, across a variety of regions and time
horizons.
For more information, visit
https://www.lmrpartners.com/
Contact Information
Please direct any questions to
Petershill Partners Investor Relations, via e-mail, at
PHP-Investor-Enquiries@gs.com
Analyst / Investor enquiries:
|
Gurjit Kambo
|
|
+44 (0)
207 051 2564
|
Media enquiries:
Please note Petershill Partners
financial calendar for the remainder of 2024:
|
Interim results to 30 June
2024
Q3 Trading Update to 30 September
2024
|
|
17
September 2024
19
November 2024
|
These written materials are not an
offer of securities for sale in the United States. Securities may
not be offered or sold in the United States absent registration
under the US Securities Act of 1933, as amended, or an exemption
therefrom. The issuer has not and does not intend to register any
securities under the US Securities Act of 1933, as amended, and
does not intend to offer any securities to the public in the United
States. Any securities of Petershill Partners plc referred to
herein have not been and will not be registered under the US
Investment Company Act of 1940, as amended, and may not be offered
or sold in the United States or to "U.S. persons" (as defined in
Regulation S under the US Securities Act of 1933, as amended) other
than to "qualified purchasers" as defined in the US Investment
Company Act of 1940, as amended. No money, securities or other
consideration from any person inside the United States is being
solicited and, if sent in response to the information contained in
these written materials, will not be accepted.
FORWARD-LOOKING
STATEMENTS
This press release may contain
forward-looking statements that involve substantial risks and
uncertainties. You can identify these statements by the use of
forward-looking terminology such as "may," "will," "should,"
"expect," "anticipate," "project," "target," "estimate," "intend,"
"continue," or "believe" or the negatives thereof or other
variations thereon or comparable terminology. You should read
statements that contain these words carefully because they discuss
our plans, strategies, prospects and expectations concerning the
business, operating results, financial condition and other similar
matters. These statements represent the Company's belief regarding
future events that, by their nature, are uncertain and outside of
the Company's control. There are likely to be events in the future,
however, that we are not able to predict accurately or control. Any
forward-looking statement made by us in this press release is based
upon information known to the Company on the date of this press
release and speaks only as of such date. Accordingly, no assurance
can be given that any particular expectation will be met and
readers are cautioned not to place undue reliance on forward
looking statements. Additionally, forward looking statements
regarding past trends or activities should not be taken as a
representation that such trends or activities will continue in the
future. Other than in accordance with its legal or regulatory
obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.