REG - Petershill Prtnrs - Q2 2024 AUM Update

Petershill PartnersAnnouncement

26/07/2024 07:00

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RNS Number : 9240X  Petershill Partners PLC  26 July 2024

Petershill Partners plc (the "Company" or "Petershill Partners"), the
diversified, global alternatives investment group focused on private capital
strategies, today publishes its AuM Update for the six months ended 30 June
2024

Organic gross fee-eligible AuM raise was US$6bn for the quarter and a total of
US$14bn in the first six months of the year.

 

Highlights

·     Aggregate Partner-firm AuM of US$332bn, increasing 6% during the
quarter and 11% year-over-year. Aggregate Fee-paying Partner-firm AuM of
US$238bn, increasing 6% during the quarter and 21% year-over-year.  The
Aggregate AuM and Fee-paying AuM increases are inclusive of M&A during the
period.

-    Organic gross fee-eligible AuM raise was US$6bn for the quarter and a
total of US$14bn in the first six months of the year.

-    Partner-firm realisations of US$4bn of Fee-paying AuM during the
quarter and a total of US$8bn in the first six months of the year.

-    Investment performance of Partner-firm funds led to a decrease of
US$(1)bn in Fee-paying Partner-firm AuM during the quarter and remains stable
for the first six months of the year.

·     As at 30 June 2024, Partner-firms had US$8bn of AuM which is not
yet paying fees, similar to the level at 31 December 2023.

 

·     On 9 April 2024, the Company acquired a stake in Kennedy Lewis
Investment Management for US$150m of which US$66m was funded at close with
US$84m deferred and yet to be funded. Kennedy Lewis is an alternative credit
manager with over US$14bn of AuM.

 

AuM Development: H1 2024*

The following table summarises the changes in Aggregate Partner-firm AuM and
Aggregate Fee-paying Partner-firm AuM for the quarter ended and the six-month
period ended 30 June 2024:

 

                                                                Quarter ended 30 June                                          Six months ended 30 June
  (US$bn unless otherwise indicated)                            AuM     Fee-paying  Ownership Weighted Aum  Ownership Weighted Fee-paying Aum     AuM    Fee-paying  Ownership Weighted Aum  Ownership Weighted Fee-paying Aum

                                                                        AuM                                                                              AuM
 Aggregate AuM at start of the period  ($bn)                    312     225         38                      29                                    304    221         37                      28
 Inflows                               ($bn)                    7       7           1                       1                                     16     14          2                       2
 Realisations                          ($bn)                    (3)     (4)         -                       (1)                                   (8)    (8)         -                       (1)
 Investment performance                ($bn)                    2       (1)         -                       -                                     6      -           -                       -
 M&A                                   ($bn)                    14      11          1                       1                                     14     11          1                       1
 Aggregate AuM at period end           ($bn)                    332     238         40                      30                                    332    238         40                      30

 

 

Unchanged 2024 Guidance

·      $20 - 25 billion organic fee-eligible AUM raise and realisations
of $5-10 billion in fee-paying AUM.

·      $200 - $230 million full year Partner FRE.

·      PRE of 15% - 30% of total Partner Revenues.

·      Acquisitions in 2024 expected to be in-line with medium-term
range of $100 - $300 million.

·      85-90% Company Adjusted EBIT margin.

 

 

 

 

 

AuM Progression Since 30 June 2023*

                                                                                                                                           QTD      YTD***
 (US$bn, unless otherwise indicated)                                      Jun-30-2024  Mar-31-2024  Dec-31-2023  Sep-30-2023  Jun-30-2023  (Δ%)     (Δ%)
 Aggregate Partner-firm AuM                                      ($bn)    332          312          304          303          300          6%       9%
 Aggregate Fee-paying Partner-firm AuM                           ($bn)    238          225          221          197          196          6%       8%
 Average Aggregate Fee-paying Partner-firm AuM **                ($bn)    215          207          201          193          190          4%       7%
 Aggregate Performance Fee Eligible Partner-firm AuM             ($bn)    293          281          275          276          274          4%       7%
 Average Aggregate Performance Fee Eligible Partner-firm AuM **  ($bn)    280          274          270          265          258          2%       4%

 

* All AuM figures are based on a one-period (3-month) lag due to the timing of
the financial information received by the Operator from the Partner-firms

** Average Aggregate AuM figures represent the twelve month mean and use the
start and each quarter end of the reporting period adjusted for acquisitions
and dispositions where applicable.

*** Percentage change relative to Dec-31-2023

 

AuM Reconciliation: Aggregate Fee-paying AuM Vs Aggregate Partner-firm AuM

The below table reconciles Aggregate Fee-paying Partner-firm AuM to Aggregate
Partner-firm AuM as at 30 June 2024, based on a one-period (3-month) lag:

                                                                Q2
 (US$bn unless otherwise indicated)                             2024
 Aggregate Fee-paying Partner-firm AuM  ($bn)                   238
 AuM not yet paying fees                ($bn)                   8
 Fee Exempt AuM                         ($bn)                   22
 Investment performance                 ($bn)                   64
 Aggregate Partner-firm AuM             ($bn)                   332

 

The following table reflects the Aggregate Partner-firm AuM, Aggregate
Fee-paying Partner-firm AuM and Ownership Weighted Fee-paying AuM by Asset
Class as of 30 June 2024, based on a one-period (3-month) lag:

 

 Asset Class (US$bn unless otherwise indicated)          AuM  Percentage  Fee-paying  Percentage  Ownership Weighted Fee-paying AuM  Percentage

                                                                          AuM
 Private equity            ($bn)                         209  63%         132         55%         12                                 39%
 Private credit            ($bn)                         55   17%         47          20%         5                                  18%
 Private real assets       ($bn)                         41   12%         32          14%         8                                  26%
 Absolute return           ($bn)                         27   8%          27          11%         5                                  17%
 Total Current Period      ($bn)                         332  100%        238         100%        30                                 100%

 

 

 

 

 

 

Contact Information

 

Please direct any questions to Petershill Partners Investor Relations, via
e-mail, at PHP-Investor-Enquiries@gs.com
(mailto:PHP-Investor-Enquiries@gs.com)

Analyst / Investor
enquiries:

 Gurjit Kambo    +44 (0) 207 051 2564

Media enquiries:

 Brunswick Group    phll@brunswickgroup.com (mailto:phll@brunswickgroup.com)
 Simone Selzer                          +44 (0)207 404 5959

 

 

 

Please note Petershill Partners financial calendar for the remainder of 2024:

 

 Interim results to 30 June 2024            17 September 2024

 Q3 Trading Update to 30 September 2024     19 November 2024

 

 

ABOUT PETERSHILL PARTNERS

Petershill Partners plc (the "Company" or "Petershill Partners") and its
Subsidiaries (the "Group") is a diversified, global alternatives investment
group focused on private equity and other private capital strategies. Through
our economic interests in a portfolio of alternative asset management firms
("Partner-firms"), we provide investors with exposure to the growth and
profitability of the alternative asset management industry. The Company
completed its initial acquisition of the portfolio of Partner-firms on 28
September 2021 and was admitted to listing and trading on the London Stock
Exchange on 1 October 2021 (ticker: PHLL). The Company is operated by Goldman
Sachs Asset Management ("Goldman Sachs" or the "Operator") and is governed by
a diverse and fully independent Board of Directors (the "Board").

 

Through our Partner-firms, we have exposure to $332 billion of total assets
under management ("AuM"), comprising a diverse set of more than 232 long-term
private equity and other private capital funds where capital is typically
locked in over a multi-year horizon. These underlying funds generate recurring
management fees and the opportunity for meaningful profit participation over
the typical 8+ year lifecycles of such funds. We believe our approach is
aligned with the founders and managers of our Partner-firms and, as a result,
allows the Company to participate in these income streams in a way that
provides high-margin, diversified and stable cash flows for our shareholders.

 

For more information, visit https://www.petershillpartners.com
(https://www.petershillpartners.com) . Information on the website is not
incorporated by reference into this press release and is provided merely for
convenience.

Key Operating Metrics - Definitions

 

This document contains certain key operating metrics that are not defined or
recognised under IFRS.

The Operator and the Directors use these key operating metrics to help
evaluate trends, assess the performance of the Partner-firms and the Company,
analyse and test dividends received from the Partner- firms and inform
operating, budgeting and re-investment decisions. The Directors believe that
these metrics, which present certain operating and other information in
respect of the Partner-firms, provide an enhanced understanding of the
underlying portfolios and performance of the Partner-firms and are therefore
essential to assessing the investments and performance of the Company.

The key operating metrics described in this section are derived from financial
and other information reported to the Operator by the Partner-firms. The
Operator, with the assistance of an independent accounting firm, performs due
diligence procedures on the information provided by the Partner-firms.  It
should be noted, however, that these due diligence procedures do not
constitute an audit.

In addition, each Partner-firm may account for and define certain financial
and other information differently from one another. For example, each
Partner-firm may calculate its fee-paying AuM differently, the result of which
being that the inputs of the Company's Aggregate Fee-paying AuM are not
consistently calculated.

Whilst the operating metrics described in this section are similar to those
used by other alternative asset managers, there are no generally accepted
principles governing their calculation, and the criteria upon which these
metrics are based can vary from firm to firm. These metrics, by themselves, do
not provide a sufficient basis to compare the Partner-firms' or the Company's
performance with that of other companies.

None of Partner Distributable Earnings, Partner FRE, Partner Realised
Performance Revenues or Partner Realised Investment Income are measures of or
provide any indication of profits available for the purpose of a distribution
by the Company within the meaning of section 830 of the Companies Act 2006, or
of any Partner-firm in accordance with the equivalent applicable rules.

Aggregate Partner-firm AuM

Aggregate Partner-firm AuM is defined as the sum of (a) the net asset value of
the Partner-firms' underlying funds and investment vehicles, and in most cases
includes co-investment vehicles, GP commitments and other non-fee-paying
investment vehicles and (b) uncalled commitments from these entities, as
reported by the Partner-firms to the Operator from time to time and aggregated
by the Operator without material adjustment. This is an aggregated figure
across all Partner-firms and includes Partner-firm AuM outside of the
Company's ownership interest in the Partner-firms.

The Operator and the Directors consider Aggregate Partner-firm AuM to be a
meaningful measure of the size, scope and composition of the Partner-firms, as
well as of their capital raising activities. The Operator uses Aggregate
Partner-firm AuM to inform operating, budgeting and re-investment decisions.

Ownership weighted AuM

Ownership weighted AuM represents the sum of the Company's ownership stakes in
each Partner-firm's AuM.

Aggregate Fee-paying AuM

Aggregate Fee-paying AuM is defined as the portion of Aggregate Partner-firm
AuM for which Partner-firms are entitled to receive management fees, as
reported by the Partner-firms to the Operator. The principal difference
between Aggregate Fee-paying AuM and Aggregate Partner-firm AuM is that
Aggregate Fee-paying AuM typically excludes co- investment on which
Partner-firms generally do not charge fees and, to a lesser extent, fund
commitments in Partner-firm funds (i) on which fees are only earned on
investment, rather than from the point of commitment and (ii) where capital
has been raised but fees have not yet been activated. This may also include
legacy assets where fees are no longer being charged.

The Operator and the Directors consider Aggregate Fee-paying AuM to be a
meaningful measure of the Partner-firms' capital base upon which they earn
management fees and use the measure in assessing the management fee related
performance of the Partner-firms and to inform operating, budgeting and
re-investment decisions.

Ownership weighted Fee-paying AuM

Ownership weighted Fee-paying AuM represents the sum of the Company's
ownership stakes in each Partner-firm's Fee-paying AuM.

Aggregate Performance Fee Eligible Partner-firm AuM

The amount of Aggregate Partner-firm AuM that is eligible for carried
interest.

AuM and associated data

The data presented in this document for the following key operating metrics
reflects AuM data reported to the Operator on a three-month lag. This
three-month data lag is due to the timing of the financial information
received by the Operator from the Partner-firms, which generally require at
least 90 days following each period end to present final financial information
to the Operator.  The key operating metrics reflected on a three-month lag
are:

•        Aggregate Partner-firm AuM

•        Aggregate Fee-paying Partner-firm AuM

•        Average Aggregate Fee-paying Partner-firm AuM

•        Aggregate Performance Fee Eligible Partner-firm AuM

•        Average Aggregate Performance Fee Eligible Partner-firm AuM

 

 

This announcement has been prepared solely to provide additional information
to shareholders and meets the relevant requirements of the Disclosure Guidance
and Transparency Rules of the Financial Conduct Authority. The announcement
should not be relied on by any other party or for any other purpose.

These written materials are not an offer of securities for sale in the United
States. Securities may not be offered or sold in the United States absent
registration under the US Securities Act of 1933, as amended, or an exemption
therefrom. The issuer has not and does not intend to register any securities
under the US Securities Act of 1933, as amended, and does not intend to offer
any securities to the public in the United States. Any securities of
Petershill Partners plc referred to herein have not been and will not be
registered under the US Investment Company Act of 1940, as amended, and may
not be offered or sold in the United States or to "U.S. persons" (as defined
in Regulation S under the US Securities Act of 1933, as amended) other than to
"qualified purchasers" as defined in the US Investment Company Act of 1940, as
amended. No money, securities or other consideration from any person inside
the United States is being solicited and, if sent in response to the
information contained in these written materials, will not be accepted.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements that involve
substantial risks and uncertainties. You can identify these statements by the
use of forward-looking terminology such as "may," "will," "should," "expect,"
"anticipate," "project," "target," "estimate," "intend," "continue," or
"believe" or the negatives thereof or other variations thereon or comparable
terminology. You should read statements that contain these words carefully
because they discuss our plans, strategies, prospects and expectations
concerning the business, operating results, financial condition and other
similar matters. These statements represent the Company's belief regarding
future events that, by their nature, are uncertain and outside of the
Company's control. There are likely to be events in the future, however, that
we are not able to predict accurately or control. Any forward-looking
statement made by us in this press release is based upon information known to
the Company on the date of this press release and speaks only as of such date.
Accordingly, no assurance can be given that any particular expectation will be
met and readers are cautioned not to place undue reliance on forward looking
statements. Additionally, forward looking statements regarding past trends or
activities should not be taken as a representation that such trends or
activities will continue in the future. Other than in accordance with its
legal or regulatory obligations (including under the UK Listing Rules and the
Disclosure Guidance and Transparency Rules of the Financial Conduct
Authority), the Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information, future
events or otherwise.

 

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