Goldman-Backed Investment Firm to Go Private in London Exit Amid Stock Market Struggles
Petershill Partners, the Goldman Sachs-owned investment group, announced plans to delist from the London Stock Exchange and return approximately $921 million to shareholders. The decision follows a strategic review by the board, which expressed dissatisfaction with the company's share price and valuation despite strong financial performance. The news sent Petershill's shares soaring 33% to a four-year high, making it the top gainer on the FTSE mid-cap index.
The firm, founded by Goldman Sachs in 2007 and listed in London in September 2021, will offer freefloat shareholders $4.15 per share in cash plus an interim dividend of $0.052 per share, totaling $4.202 per share. This represents a premium of about 35% to the stock's last closing price. The capital return will be funded through cash, deferred disposal proceeds, and new debt, with the interim dividend scheduled for payment on October 31, 2025.
Despite the planned exit from London, Petershill reported robust interim results, with partner distributable earnings reaching $152 million in the first half of the year, a 9% increase. Adjusted earnings before interest and tax rose to $167 million from $128 million, while adjusted earnings per share climbed to 11.4 cents from 8.5 cents. The company noted that assets under management had grown to $351 billion, representing an annualized growth rate of 17%.
The delisting highlights ongoing challenges for London's equity market in retaining major listings. Petershill Chairman Naguib Kheraj attributed part of the valuation disconnect to broader trends affecting the private-equity industry, including higher interest rates making it harder to raise money and sell assets. He emphasized that investor preference for larger players like Apollo and Blackstone, along with general aversion to smaller stocks, is a global phenomenon rather than specific to London. If the plan proceeds, investment funds managed by Goldman's asset-management arm, which already own nearly 80% of Petershill, would take full ownership of the company.
