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Goldman Sachs has said Petershill Partners, its alternative asset portfolio, is to price its initial public offering at 350 pence a share, implying a market capitalisation of about £4bn when it lists on the London Stock Exchange.
The IPO of Petershill Partners, which owns minority stakes in 19 alternative asset companies with a combined $187bn of assets under management, comes amid a global boom for the private equity industry.
Petershill will seek to raise £1bn from the share sale, with the exercise of the so-called greenshoe option raising an additional £200m and taking the total to £1.2bn. Including the greenshoe, this represents 29 per cent of its issued share capital. The proceeds of the IPO will be used to fund expenses and buy more stakes in alternative asset managers.
Petershill sits within Goldman Sachs Asset Management and is run by co-heads Ali Raissi and Robert Hamilton Kelly.
About four-fifths of Petershill’s assets are in private markets managers and the remainder in hedge fund strategies. Holdings include stakes in Caxton Associates, one of the world’s oldest and best-known hedge funds, Ross Turner’s Pelham Capital and technology buyout firm Accel-KKR.
The listing gives “public market investors a unique opportunity to gain diversified access to the rapidly growing alternative investment industry”, said Naguib Kheraj, Petershill chair, in a statement on Tuesday. “We are very happy with the mix of shareholders participating in the offering.”
Kheraj, a former Barclays finance director chairs specialist pension insurer Rothesay Life and is deputy chair of Standard Chartered.