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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.
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
Asset
Carrying Value
Realization Value
Premium/Multiple
General Catalyst
447.0
Aggregate Exits
Accel-KKR
Harvest Partners
Asset