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Petershill Partners PLC on Wednesday posted a maiden profit as a listed company, declaring a dividend and setting out plans for a share buyback.
The London-based investment vehicle is managed by Goldman Sachs Asset Management, part of Goldman Sachs Group Inc, and invests in alternative asset managers. Petershill debuted on the London Stock Exchange in late September last year, raising $720 million.
Pretax profit for the period running from March 24 to December 31 was $260.5 million. Income was $137.5 million, while the positive change in fair value of investments was $234.0 million. Partner distributable earnings rose by 57% to $382 million from $243 million.
Petershill benefits from the diversification of its partner firms, commented Hubert Lam, a research analyst at Bank of America Securities.
‘The weighted average capital duration is 8.1 years, highlighting the longevity of assets, which drives high-quality recurring revenues,’ Lam wrote in a note on Wednesday.
Petershill expects between $40 billion and $45 billion of gross fee-paying assets to be raised by partners in 2022.
‘This implies net fundraising of $30 to $40 billion adjusted for realisations (20-25% organic growth), compared to our estimate of about $30 billion,’ BofA's Lam said.
Petershill will propose a final dividend of 2.6 cents per share to shareholders at the annual general meeting on May 24, it said, and plans to launch a share buyback of up to $50 million.
Analysts at JP Morgan Cazenove said Petershill is operating in a favourable market at the moment. ‘We believe the environment for Petershill to undertake further investments remains attractive which may lead to the rate of investments exceeding our base case of around £200 million per annum.’
Petershill Partners shares were up 4.0% at 275.00 pence each in London on Wednesday afternoon.
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