REG - Petershill Prtnrs - Sale of stake in LMR Partners

Petershill PartnersAnnouncement

04/09/2024 07:00

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RNS Number : 7698C  Petershill Partners PLC  04 September 2024

Petershill Partners plc ("Petershill Partners"), the diversified, global
alternatives investment group focused on private capital strategies, today
announces the sale of its stake in LMR Partners

 

Highlights

·     Petershill Partners has completed the sale of its entire stake in
LMR Partners back to LMR Partners' leadership team. The total nominal
consideration of up to $258 million consists of $107 million upfront payment
in cash paid at close, $111 million deferred consideration and an earn-out
payment of up to $40 million in cash. The accounting fair value of the sale
consideration at closing is expected to be marginally above the carrying value
of the investment in LMR Partners as at 31 December 2023 which was $195
million.

 

·     LMR Partners is a global multi-strategy and absolute return
investment firm predominately focusing on market neutral and relative value
strategies. LMR Partners was founded in 2009 and manages total assets of
approximately $11 billion.

 

·     The transaction is consistent with Petershill Partners' strategic
focus on private market alternative asset firms. Following completion of the
transaction, more than 90% of ownership weighted AUM will be focused on
private capital strategies.

 

·     The impact of the sale is expected to have an immaterial impact on
Partner Fee-Related Earnings given the majority of earnings going forward from
LMR Partners were expected to consist of Partner Realised Performance Revenues
(PRE). Consequently, Petershill Partners does not anticipate any change to its
Full Year 2024 guidance in connection to the sale.

 

·     The Board continues to focus on capital efficiency and will
consider the most appropriate use for the proceeds received from the sale.

 

 

Ali Raissi-Dehkordy and Robert Hamilton Kelly, Co-Heads of the Petershill
Business within Goldman Sachs Asset & Wealth Management commented: "This
transaction is consistent with our strategy and further refines Petershill
Partners' focus on private market strategies, an area where we continue to see
attractive growth opportunities. We would like to thank the entire LMR
Partners team for the exceptional collaboration since we became partners in
2018. We wish the team all the best and continued success for the future".

 

 

ABOUT PETERSHILL PARTNERS

Petershill Partners and its subsidiaries is a diversified, publicly listed,
global alternatives investment group focused on private equity and other
private capital strategies. Through its economic interests in a portfolio of
alternative asset management firms ("Partner-firms"), Petershill Partners
provides investors with exposure to the growth and profitability of the
alternative asset management industry. Petershill Partners is operated by
Goldman Sachs Asset Management 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. Petershill Partners believes its
approach is aligned with the founders and managers of its Partner-firms and,
as a result, allows Petershill Partners to participate in these income streams
in a way that provides high-margin, diversified and stable cash flows for its
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.

 

ISIN: GB00BL9ZF303

 

 

BofA Securities is acting as sole financial adviser and is one of the
corporate brokers to Petershill Partners

 

Merrill Lynch International ("BofA Securities"), which is authorised by the
Prudential Regulation Authority ("PRA") and regulated by the Financial Conduct
Authority ("FCA") and the PRA in the United Kingdom, is acting exclusively
for Petershill Partners and for no one else in connection with the matters
referred to in this Announcement and will not be responsible to anyone other
than Petershill Partners for providing the protections afforded to its clients
or for providing advice in relation to the matters referred to in this
Announcement. Neither BofA Securities, nor any of its affiliates, owes or
accepts any duty, liability or responsibility whatsoever (whether direct or
indirect, whether in contract, in tort, under statute or otherwise) to any
person who is not a client of BofA Securities in connection with this
Announcement, any statement contained herein or otherwise.

 

ABOUT LMR

LMR Partners is an investment manager with offices in London, Hong Kong, New
York, Zurich, Glasgow, Dubai and Dublin employing over 300 people to manage
total assets of approximately $11 billion. The investment approach deploys
capital across liquid, market-neutral trading strategies, employing both
systematic and discretionary approaches. LMR looks to find relative-value
investment opportunities within equity, fixed income, credit, volatility,
commodities, and event-driven markets, across a variety of regions and time
horizons.

 

For more information, visit https://www.lmrpartners.com/
(https://www.lmrpartners.com/)

 

 

 

 

 

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

 

 

 

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

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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
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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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