Goldman Sachs Group Inc.’s Petershill Partners was valued at 4 billion pounds ($5.5 billion) in a London share sale that marks the latest initial public offering by a private equity firm.
The company priced its shares at 350 pence each prior to the start of trading Tuesday, according to a statement. Petershill Partners raised 547 million pounds selling new stock, while its backers offloaded existing shares worth 465 million pounds.
Investor appetite in private equity has been strong and both Bridgepoint Group Plc and Antin Infrastructure Partners SA surged more than 25% on their recent trading debuts. Newly formed Petershill Partners holds several portfolio company stakes acquired by Petershill, a Goldman entity set up in 2007 to acquire minority positions in private equity, hedge funds, and other alternative managers. Petershill Partners originally marketed the shares at 320 pence to 380 pence each.
Closely held firms have been grappling with how to provide exits for founders, while also ensuring rising stars can monetize their stakes. Petershill co-head Ali Raissi said earlier the IPO will create a permanent pool of capital and align its interests with its investment targets for the long term.
Petershill’s business of buying minority stakes in private equity firms has attracted rivals like Blackstone Inc. and Dyal Capital, who have also raised funds dedicated to the strategy.
Petershill Partners holds 19 stakes including Accel-KKR, Francisco Partners, Riverstone Holdings LLC, Caxton Associates LP and LMR Partners LP.
The 1-billion-pound IPO could be increased to 1.2 billion pounds if underwriters exercise an option to sell additional shares.
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