Petershill Partners Cancels Listing Amidst Private Equity Woes

Strategic Insights -

Petershill Partners, the investment vehicle backed by Goldman Sachs, is cancelling its listing on the UK stock market after struggling to attract investors. The decision follows a decline in share price, with the stock trading at a 37% discount to its reported book value since January 2024. Despite asset sales and buybacks, the company's chairman, Naguib Kheraj, cited a lack of "catalyst" to improve the situation, referencing the market's downturn in private equity's ability to sell portfolio companies.

Key Takeaways:

  • Petershill Partners, backed by Goldman Sachs, is cancelling its listing on the UK stock market due to financial struggles.
  • The company's shares have traded at a 37% discount to their reported book value since January 2024, with liquidity drying up.
  • Petershill Partners' chairman, Naguib Kheraj, stated that there was no "catalyst" to improve the company's situation, citing the private equity market's struggles.
  • The company's decision to cancel its listing includes a $921 million plan to buy out minority shareholders at 309p a share, resulting in a minor profit for those who invested since the float.
  • The unsuccessful listing was despite Petershill Partners' ability to attract investments in private equity and hedge funds, including in Chelsea FC-owner Clearlake.
  • The investment vehicle was created to give the free float exposure to investments that weren't easily accessible, but its opacity and lack of transparency likely contributed to its struggles.

Statistics:

  • Petershill Partners was listed on the UK stock market at 350p a share in 2021, with a market value of £4 billion.
  • The company's shares have traded at a 37% discount to their reported book value since January 2024.
  • The $921 million plan to buy out minority shareholders will be out at 309p a share, resulting in a 34% rise to 310p.
  • Petershill Partners holds stakes in two dozen private equity and hedge funds, with almost 80% of the group being held by private funds managed by Goldman Sachs.

Sources:

  • Report, page 37.
  • "Petershill Partners Cancels Listing Amidst Private Equity Woes"