Investment trust insider on Petershill – James Carthew: Petershill, a complex play on ‘alts’ growth
One of the more unusual new investment companies coming to the market last year was Petershill Partners (PHLL). It started trading on the premium segment and main market of the London Stock Exchange in early October at 350p per share, giving it a market value of over £4bn. Of that, around $700m was new money, the balance having rolled over from an earlier unlisted vehicle.
It didn’t get off to a good start – the shares closed at a low of 194.8p on 18 February – but in recent weeks these have perked up, closing on Friday at 285p, down 18% from launch.
PHLL is managed by Goldman Sachs Asset Management, and it provides capital and other financial support to alternative asset management businesses investing around the world. The investment trust earns money from a share of management fees, performance fees and investment income/capital gains. Value can also be created as the underlying firms expand their assets under management.
The idea behind the closed-end fund dates back to 2007 when Goldmans raised $1bn for a limited partnership vehicle, Petershill Fund I. Around three-quarters of PHLL is owned by funds managed by Goldmans, including Petershill Funds II and III. That leaves a limited free float, which may make its shares more volatile.
The latest limited partnership vehicle, Petershill Fund IV raised $5bn last year. It will… read more here