Petershill Partners LON:PHLL, the Goldman Sachs-backed investment group that takes minority stakes in private equity and alternative asset managers, reported solid interim results today but also confirmed plans to return almost $1bn to shareholders and withdraw from the London market.
The board said it would recommend a capital return of $921m, equivalent to 415 cents per share, alongside the cancellation of all free-float shares and a delisting from the London Stock Exchange. Including an interim dividend of 5.2 cents per share, the payout equates to 420.2 cents per share — a 35 per cent premium to the company’s previous closing price.
The return will be funded through cash, deferred proceeds from disposals and new debt.
“Consistently undervalued”
Management said the move reflected frustration that the company’s shares had consistently failed to reflect progress since its 2021 flotation. “The board and operator believe Petershill has been consistently undervalued despite strong strategic delivery. This is a unique opportunity to return significant near-term value to shareholders,” said co-heads Ali Raissi-Dehkordy and Robert Hamilton Kelly.
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For the six months to 30 June 2025, partner distributable earnings rose 9 per cent year-on-year to $152m. Adjusted profit after tax climbed to $124m from $94m in the first half of 2024, while adjusted earnings before interest and tax increased to $167m with a margin of 89 per cent.
Adjusted earnings per share were 11.4 cents compared with 8.5 cents a year earlier. IFRS profit after tax more than doubled to $248m, driven by unrealised gains on the value of investments. IFRS earnings per share rose to 22.9 cents from 12.3 cents.
Capital returns during the period totalled $265m, including a final dividend of $114m for 2024 and a $151m special dividend. The board approved a further interim dividend of $56m, in line with policy to pay one-third of the prior year’s dividend.
Petershill remains active on transactional front
The group was active on the transactional front. Petershill completed the $726m disposal of its stake in General Catalyst and acquired a position in Frazier Healthcare Partners for $330m. Since the period end, it has also sold its interest in Harvest Partners for $561m and invested $158m in a follow-on stake in STG Partners.
The company’s portfolio businesses raised $19bn of gross fee-eligible assets in the first half, helping drive growth in assets under management. Aggregate partner-firm AuM reached $351bn, up 6 per cent on the prior year, with fee-paying AuM rising 3 per cent to $245bn. Partner private markets accrued carried interest increased 11 per cent to $774m.
Partner fee-related earnings slipped 12 per cent to $99m, reflecting disposals. On a pro forma basis, adjusting for assets sold, fee-related earnings in the comparable period were $87m. Management fees fell 8 per cent, though on a disposal-adjusted basis they rose 14 per cent.
Investment valuations down due to disposals
Investments were valued at $5.5bn at the end of June, down 5 per cent since December due to disposals, while cash and money market holdings rose sharply to $123m from $23m at the year end. Free cash flow conversion stood at 112 per cent, with book value per share broadly unchanged at 470 cents.
Guidance for 2025 was left unchanged. Management expects to raise $20bn–$25bn of fee-eligible assets and realise $5bn–$10bn of fee-paying AuM, with full-year fee-related earnings of $180m–$210m. Acquisitions are forecast to exceed the medium-term range of $100m–$300m. The board reiterated its target adjusted EBIT margin of 85–90 per cent.
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