LONDON: Petershill Partners plc, the diversified, global alternatives investment group focused on private capital strategies, announced the sale of its stake in LMR Partners
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”.
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.