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Petershill Partners Tepid Market Reception

Petershill is a publicly traded fund traded out of London (as most public funds are due to regulatory barriers in the US), which is externally managed by Goldman Sachs. It focuses on GP stakes in asset management businesses, something that I have been exploring due to my opinion on the cash flow quality and growth potential of these types of businesses. More recently I’ve been looking at Pacific Current, an Australia listed GP stakes business.

Petershill’s structure is that it’s a public vehicle that co-invests with the Petershill PE fund (currently on fund 4) and utilizes the existing infrastructure on the GS platform. It went public with stakes in funds 2 and 3. Post IPO, the price of the the shares has declined by about 40%:

To that end, the business is interesting due to the diversification, management team, and ~3.5-4% dividend. It’s not interesting due to the pass through partnership status and fee load on top of it.

Plan to look into both to flesh out whether it’s something that fits our typical investment profile.

In case anyone is interested – they put out good materials on the business and future strategy along with an informative webcast.