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Petershill Partners

Petershill Partners operates as a sophisticated alternative asset management platform that provides institutional quality exposure to leading private capital firms through a unique GP stakes investment model. Originally incubated within Goldman Sachs in 2007, the firm
executed a London Stock Exchange IPO in October 2021.

Pillar

Uncorrelated Strategies

Industry

Alt. Asset Mgmt

Status

Current Investment

Geography

NA/European

Invested Date

Q3 2025

Investor

David Novosardian

DCF

DDM

425p

205p

P/NAV

FFO

376p

301p

WAVG

Q3 2025

349p

David Novosardian

Bottom-up Fundamental Analysis

Brief Introduction

Petershill

Partners

operates

as

a

sophisticated

alternative

asset

management

platform

that

provides

institutional

quality

exposure

to

leading

private

capital

firms

through

a

unique

GP

stakes

investment

model.

Originally

incubated

within

Goldman

Sachs

in

2007,

the

firm

executed

a

London

Stock

Exchange

IPO

in

October

2021,

establishing

itself

as

a

permanent

capital

vehicle

with

significant

institutional

backing.

Its

corporate

structure

us

fabricated

through

their

1)

listed

platform,

providing

liquid

access

to

traditionally

illiquid

private

market

economies,

2)

Goldman

Sachs

integration,

operates

under

GS

Asset

Management,

leveraging

institutional

grade

operational

infrastructure,

3)

Permanent

Capital

Vehicle,

$304

billion

in

aggregate

partner

firm

assets

under

management

across

20+

partner

firms.

Petershill

exploits

a

fundamental

market

inefficiency

where

GP

stakes

transactions

consistently

price

private

fund

managers

at

8-12x

earnings

multiples

while

equivalent

public

asset

managers

publish

15-25x

multiples,

representing

a

40%

valuation

gap.

Not

only

are

market

conditions

aligning

favorably

with

cyclical

recovery

in

private

equity

exits,

private

credit

market

share

gains,

structural

rotation

towards

alternative,

but

the

European

equities

market

environment

has

become

increasingly

favorable

with

institutional

capital

pivoting

towards

European

assets

amid

attractive

risk-adjusted

return

dynamics

and

credit

spreads

approaching

25-year

tights.

Recent

realizations

demonstrate

the

firm’s

ability

to

structure

assets

at

premiums

to

carrying

values,

validating

the

underlying

investment

approach.

Why now?

Market

conditions

are

aligning

favorably

with

cyclical

recovery

in

private

equity

exits,

continued

private

credit

market

share

gains

and

structural

portfolio

allocations

towards

alternatives.

The

global

credit

environment

has

normalized

significantly

with

public

credit

markets

reopening

and

year

to

date

investment

grade

issuance

surpassing

$1.5

trillion

at

favorable

spreads.

European

markets

have

realized

40%

of

Q2

2025

issuance

volumes,

creating

favorable

financing

conditions

across

Peterhill’s

North

American

and

European

portfolio

companies.

Executive Summary

GP

Stakes

investing

exploits

a

fundamental

market

inefficiency

that

underlies

through

its

persistent

valuation

discount

between

private

and

public

asset

management

companies

with

public

asset

managers

trading

at

15-25x

earnings

multiples

and

private

fund

managers

in

GP

stakes

transactions

consistently

priced

at

8-12x

earnings,

representing

a

40-60%

valuation

gap

that

reflects

liquidity

premiums

rather

than

fundamental

business

quality

differences.

The

structural

opportunity

emerges

from

three

converging

market

forces:

1)

accelerating

institutional

allocation

to

alternatives

(23%

currently,

targeting

30%

by

2028)

2)

regularity

driven

banking

retreat

creating

$450B

+

annual

private

credit

opportunities

and

further

supply

constraints

in

the

GP

stakes

market

with

only

~40

institutional

quality

participants

globally.

To

translate

this

into

earnings,

we

use

a

regime

switching

revenue

framework

that

couples

a

stable

fee

paying

AUM

engine

(FRE)

with

a

performance

overlay

(PRE)

that

shifts

between

realization

off

and

realization

on.

Under

a

base

layout,

this

translates

into

mid-$90s

to

low-$100s

million

of

Partner

Distributable

Earnings

per

quarter

over

the

next

year,

with

downside

buffered

by

FRE

and

upside

convexity

when

the

realization

layout

restructures.

Investment Thesis

Petershill’s

Q2

2025

results

demonstrate

accelerating

momentum

with

fee

paying

partner

firm

AUM

reaching

$245

billion

(up

5%

quarterly,

3%

YoY),

while

organic

gross

fee

eligible

AUM

hit

$12

billion

for

the

quarter

and

$19

billion

during

H1

2025

reflecting

a

forward

movement

of

asset

raising

previously

expected

in

H2.

This

performance

occurs

during

a

challenging

fundraising

environment,

demonstrating

the

resilience

of

fee

based

revenue

streams.

The

company

maintains

unchanged

2025

guidance

of

$180-210

million

full

year

partner

FRE

and

85-90%

company

adjusted

EBIT

margins.

Furthermore,

the

earnings

architecture

materializes

high

grade

risk-adjusted

returns

through

three

distinct

revenue

components:

1)

management

fee

participation

offering

85%

margins

and

high

visibility

2)

performance

fee

upside

providing

asymmetric

returns

during

realization

cycles

3)

NAV

appreciation

driven

by

private

market

multiple

expansion

across

diversified

manager

portfolios

where

scale

advantages

in

deal

sourcing

and

operational

support

create

sustainable

competitive

moats.

Background

Petershill

Partners

creates

a

sophisticated

approach

to

alternative

asset

management

positioning

itself

as

a

diversified

platform

keening

to

the

complex

needs

of

high

grade

institutional

quality

exposure

to

the

growth

trajectory

of

leading

private

capital

firms.

The

firm

inhibits

a

unique

structure

within

the

alternatives

landscape

coined

as

“meta-exposure”,

where

institutions

gain

participation

in

private

equity

returns

through

the

fee

streams

and

carried

interest

of

successful

managers

without

the

capital

commitment

timing

mismatches,

J-curve

effects,

or

vintage

year

concentrations

risk

that

highlight

investing

directly

in

private

markets.

The

firm’s

origins

slither

back

to

2007

within

Goldman

Sachs,

where

it

began

as

Petershill

Group

with

the

initial

institutional

capital

raise

of

$1

billion

for

Petershill

Fund

I.

This

inception

was

quite

percipient

due

to

occurring

at

the

inflection

point

where

alternative

assets

began

their

transformation

from

niche

institutional

holdings

to

core

portfolio

allocations.

Petershill

Funds

II

($1.4

billion

in

2013),

III

($2.5

billion

in

2017),

IV

($5.0

billion

in

2021)

portrays

strong

institutional

validation

of

the

GP

stakes

investment

thesis.

The

firm’s

strategic

decision

to

execute

a

London

Stock

Exchange

IPO

in

October

2021

marked

a

pivotal

moment

and

established

Petershill

Partners

as

a

permanent

capital

vehicle

with

$304

billion

in

aggregate

partner

firm

assets

under

management

across

20+

partner

firms.

($351

AUM

Q2

2025).

Strategic Framework

The

architecture

of

the

firm

is

eloquently

constructed

around

three

fundamental

pillars

that

differentiate

it

from

conventional

alternative

investment

approaches.

The

firm

maintains

exposure

across

complementary

asset

classes:

64%

private

equity,

14%

private

real

assets,

13%

private

credit

and

9%

absolute

return

strategies

all

of

which

combined

provide

organic

diversification

across

economic

cycles

and

global

market

conditions.

The

advantage

in

its

corporate

framework

is

seen

in

their

revenue

groundwork

which

is

defined

as

high

margin,

recurring

management

fees

accompanied

by

performance

based

carried

interest

participation

creating

a

revenue

profile

characterized

by

stability

through

fee

related

earnings

while

maintaining

upside

activity

through

performance

revenues.

Brief Introduction

Operational Excellence under Goldman Sachs Asset Management

The

operational

groundwork

under

Goldman

Sachs

provides

institutional

grade

quality

that

would

otherwise

be

prohibitively

expensive

to

replace

independently.

Such

as

469

GP

services

recorded

in

FY

2023

across

partner

firms

representing

23

engagements

per

partner

firm

annually

which

supports

the

introductory

thesis

of

how

these

operations

have

capabilities

that

are

provided

at

scale.

Moving

forward,

this

operational

leverage

translates

directly

into

competitive

advantages

where

partner

firms

access

capabilities

that

would

individually

require

$2-4

million

in

annual

infrastructure

costs

while

Goldman

Sachs

achieves

unit

cost

efficiencies

through

shared

services

delivery

across

the

platform

that

is

later

visible

through

its

sustainable

margin

of

200-400

basis

points

compared

to

independent

managers,

supporting

Petershill’s

58%

partner

FRE

margins

versus

industry

averages

of

35-45%

whilst

showing

85-90%

company

adjusted

EBIT

margins

that

would

be

unattainable

without

platform

scale

operational

efficiencies.

Quantitative Analysis Framework

Triple

Barrier

Method

Results:

73%

probability

of

achieving

350ps

target

within

12

months

Capital

Efficiency

Superior:

Asset

Velocity

Coefficient

of

18.7%

vs

12.3%

for

trad

asset

managers

Earnings

Quality

Premium:

85%

fee

related

margins

vs

65%

industry

average

Growth

Trajectory:

17.2%

fee

paying

AUM

CAGR

vs

12.3%

sector

average

Despite

fairly

rigorous

underlying

conditions

among

boutique

alternative

managers,

the

valuation

of

this

LSE

listed

firm

continues

to

trade

35%

below

its

own

net

asset

value

and

reflects

short

term

market

foresight

rather

than

evidential

structural

weakness.

Over

the

past

year,

the

firm

has

executed

a

series

of

realizations

at

valuations

quite

evidently

above

the

carrying

value

averaging

a

30%

premium

to

NAV

across

transactions.

With

private

alternatives

currently

accounting

for

only

~11.5%

(an

increase

from

10.5%

the

prior

year)

of

investor

portfolios,

trajectories

suggest

this

could

triple

by

the

end

of

the

decade.

Moreover,

emerging

product

formats

aimed

at

retail

investors

are

expected

to

drive

significantly

higher

margins

while

supporting

both

earnings

accelerations

and

multiple

reratings.

The

architecture

of

the

firm

is

eloquently

constructed

around

three

fundamental

pillars

that

differentiate

it

from

conventional

alternative

investment

approaches.

The

firm

maintains

exposure

across

complementary

asset

classes:

64%

private

equity,

14%

private

real

assets,

13%

private

credit

and

9%

absolute

return

strategies

all

of

which

combined

provide

organic

diversification

across

economic

cycles

and

global

market

conditions.

The

advantage

in

its

corporate

framework

is

seen

in

their

revenue

groundwork

which

is

defined

as

high

margin,

recurring

management

fees

accompanied

by

performance

based

carried

interest

participation

creating

a

revenue

profile

characterized

by

stability

through

fee

related

earnings

while

maintaining

upside

activity

through

performance

revenues.

Quantitative Analysis Framework

The

architecture

of

the

firm

is

eloquently

constructed

around

three

fundamental

pillars

that

differentiate

it

from

conventional

alternative

investment

approaches.

The

firm

maintains

exposure

across

complementary

asset

classes:

64%

private

equity,

14%

private

real

assets,

13%

private

credit

and

9%

absolute

return

strategies

all

of

which

combined

provide

organic

diversification

across

economic

cycles

and

global

market

conditions.

The

advantage

in

its

corporate

framework

is

seen

in

their

revenue

groundwork

which

is

defined

as

high

margin,

recurring

management

fees

accompanied

by

performance

based

carried

interest

participation

creating

a

revenue

profile

characterized

by

stability

through

fee

related

earnings

while

maintaining

upside

activity

through

performance

revenues.

Quantitative Analysis Framework

The

architecture

of

the

firm

is

eloquently

constructed

around

three

fundamental

pillars

that

differentiate

it

from

conventional

alternative

investment

approaches.

The

firm

maintains

exposure

across

complementary

asset

classes:

64%

private

equity,

14%

private

real

assets,

13%

private

credit

and

9%

absolute

return

strategies

all

of

which

combined

provide

organic

diversification

across

economic

cycles

and

global

market

conditions.

The

advantage

in

its

corporate

framework

is

seen

in

their

revenue

groundwork

which

is

defined

as

high

margin,

recurring

management

fees

accompanied

by

performance

based

carried

interest

participation

creating

a

revenue

profile

characterized

by

stability

through

fee

related

earnings

while

maintaining

upside

activity

through

performance

revenues.

Quantitative Analysis Framework

Private Equity

Private Credit

Private Real Assets

Absolute Return Strategies

Aggregate Partner-Firm AUM

$351B

+20

240

$348.2M

91%

Partner Firms Across 106 Strategies

Diverse Funds Under Management

Net Income Q4 2024

Partner Firm AUM Private Markets