Goldman Sachs (GS) is ready to list the new investment vehicle Petershill Partners on the London Stock Exchange (LSE). The new vehicle will be composed of assets already under Goldman Sachs and will facilitate existing investors selling 25% of their stakes to offer on the market. Petershill Partners' IPO is expected to raise about $750m at an estimated $5b valuation. Petershill, which has minority stakes in 19 alternative assets managers, will allow institutional investors such as pension funds to access stakes in private equity firms.
GS's move comes just a month after Bridgepoint announced plans for a $2.8b IPO on the LSE (you may call it a private asset manager clash of the titans). Overall, there were 785 private equity deals in the UK in just the first half of 2021. The combined value of these deals amounts to approximately $102b.
Why it matters
Goldman Sachs's move comes amid a boom in the private equity market. Assets of private equity firms are expected to increase 9.8% in value by 2025 to $17.5t. The boost is driven by low interest rates and cheaper valuations for companies. We may witness other private equity firms trying to cash in on this boom in the near future.
