
This announcement contains inside information
Petershill Partners plc ("Petershill Partners"), today announces the sale of the majority of its stake in General Catalyst at a significant premium and its intention to pay a special dividend of
Highlights
· Petershill Partners has completed a sale of the majority of its stake in General Catalyst. The sale arises from a capital restructuring being undertaken by General Catalyst and external investors. The total nominal consideration of
· Since the initial investment was made into General Catalyst in 2018, the business model of General Catalyst has evolved significantly from a pureplay venture capital firm into a global investment and transformation company, which is expected to result in a shift from management fee-centric earnings towards longer term performance-related value creation. Consequently, the change is less aligned with the Petershill Partners' alternative asset management investment strategy.
· The assets disposed of by Petershill Partners comprise its interest in General Catalyst's management fee earnings ("FRE") and future performance related earnings ("PRE"). The Company will retain rights to PRE and balance sheet assets relating to existing funds with a carrying value of
· The
· The total nominal consideration equates to 21% of Petershill Partners' market capitalisation, based on the closing share price of
· The transaction further demonstrates Petershill Partners' value creation model, where the blended discount rate implied in the holding value of General Catalyst at 30 June 2024 was approximately 17%, compared to the implied blended discount rate on exit of approximately 11%, and the typical reinvestment in new deals at an implied blended discount rate of 15-20%. The transaction also addresses the divergence between General Catalyst's future business plan and Petershill Partners' alternative asset management investment strategy. Petershill Partners retains a high quality and diversified portfolio, with the top five partner firms by ownership weighted AUM (Q2 2024) unchanged post the disposal. Since the start of 2024 and including this disposal, the aggregate nominal consideration due from sales of stakes in Partner-firms has amounted to
· The Board intends to retain the majority of the net proceeds from the sale for redeployment into new investments. The Board also intends to declare a special dividend of
Ali Raissi-Dehkordy and Robert Hamilton Kelly, Co-Heads of the Petershill Business within Goldman Sachs Asset & Wealth Management commented:
"This transaction further demonstrates our ability to realise assets at attractive valuations relative to their holding values and allows us to exit the investment while facilitating General Catalyst's vision of building a global investment and transformation company over time. General Catalyst is an exceptional firm, and Petershill Partners and General Catalyst have benefitted from seven years of collaboration and growth. We wish them every success as they continue to execute on their business plan, support innovative founders and drive future global transformation. We see good opportunities to redeploy the retained proceeds from the sale into new investments that will drive attractive future returns for shareholders."
Detailed Notes:
· The
· The loan notes are an obligation of the main holding company which owns the substantial majority of the businesses which form part of the General Catalyst group and benefit from a range of covenant and other credit protections.
· The indicative IFRS gross gain is
· The total divestment profit on the disposal relative to the contribution value at the IPO of Petershill Partners is
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
For more information, visit 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
ABOUT GENERAL CATALYST
General Catalyst was founded in 2000 and is headquartered in
For more information, visit https://www.generalcatalyst.com/
Contact Information
Please direct any questions to Petershill Partners Investor Relations, via e-mail, at PHP-Investor-Enquiries@gs.com
Analyst / Investor enquiries:
Gurjit Kambo
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+44 (0) 207 051 2564
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Media enquiries:
Brunswick Group |
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Simone Selzer |
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+44 (0)207 404 5959 |
These written materials are not an offer of securities for sale in
This announcement contains inside information for the purposes of Article 7 of assimilated Regulation (EU) No. 596/2014 as it forms part of the law of the
The person responsible for making this announcement on behalf of Petershill Partners is Naguib Kheraj, Chairman.
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
[1] Consensus estimate for 2025 distributable earnings of
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