Goldman’s Petershill Mulls Listing $4 Billion London Vehicle

(Bloomberg) -- Goldman Sachs Group Inc.’s Petershill unit, which specializes in buying stakes in alternative asset managers, is considering listing a permanent capital vehicle in London as soon as this year, people familiar with the matter said.

Petershill is working with advisers on the potential initial public offering, the people said, asking not to be identified because the information is private. Having a listed entity would offer a way for public market investors to gain exposure to Petershill’s funds while providing liquidity for some of their existing backers, the people said. 

It could seek a valuation of around 3 billion pounds ($4.1 billion) for the London vehicle, though details of the potential deal haven’t been finalized, according to the people.

Petershill’s business of buying minority stakes in private equity firms is booming, and rivals like Blackstone Inc. and Blue Owl Capital Inc.’s Dyal Capital arm have also raised funds dedicated to the strategy. 

Goldman has expanded its alternative investments business in recent years as Chief Executive Officer David Solomon preached the benefits of business lines generating steady fees. This week, the Wall Street firm agreed to buy the asset-management arm of Dutch insurer NN Group NV for 1.6 billion euros ($1.9 billion). 

Petershill has bought stakes in technology-focused investment firm Accel-KKR and venture capital firm General Catalyst Partners. Its other investments include European private equity firm Permira and Slate Asset Management, according to data compiled by Bloomberg.

Listing a vehicle in London would follow the successful stock market debut of British private equity firm Bridgepoint Group Plc, whose July IPO raised about $1.25 billion, according to data compiled by Bloomberg. Bridgepoint shares are now trading 44% above their IPO price.  

Petershill’s deliberations are ongoing, and there’s no certainty they will lead to a transaction, the people said. A London-based representative for Goldman declined to comment.

©2021 Bloomberg L.P.