Goldman Sachs plans a London IPO for its $5 billion Petershill assets as it cashes in on the private equity boom

• Goldman Sachs plans to list the assets of its Petershill unit on the London Stock Exchange.
• The listing could reportedly value the portfolio at more than $5 billion.
• The investment vehicle holds stakes in 19 alternative asset managers worth a combined $187 billion.

Goldman Sachs plans to list the alternative assets of its Petershill Partners unit on the London Stock Exchange, in a move that could value the investments at more than $5 billion.

Petershill, which holds minority stakes in 19 alternative asset managers, will be a standalone company run by the Goldman Sachs Asset Management team and will have an independent board, the group said in a filing on Monday.

The sale of new shares for the investment firm, which manages assets worth $187 billion, is expected to raise $750 million, according to the filing. The initial public offering is likely to take place within the next month, Reuters reported, citing a source close to the deal.

The London IPO, which would offer new and existing shares, is aiming at a valuation for Petershill above $5 billion, according to multiple reports.

Founded in 2007, Petershill was the first among a series of investment vehicles to take stakes in private equity and other alternative investments. Its floatation would allow it to become the largest listed alternatives business in London, according to the Financial Times.

"Through Petershill Partners, investors would benefit from the expertise of Goldman Sachs as its operator both in terms of managing the existing portfolio and developing opportunities to make additional future investments in this rapidly growing industry," Naguib Kheraj, non-executive chair of Petershill Partners, said in the filing.

The firm has delivered high growth recently, with distributable profits to partners doubling from $108 million in 2018 to $243 million in 2020, and reached $310 million for the 12 months ending 30 June 2021.

Petershill had a technology-focused dedication to providing growth capital in 2017, but after the pandemic it has begun to reposition to sectors including healthcare, environmental, social and governance (ESG), and balance sheet repair, according to the filing.

With the listing, Goldman seems to be tapping into the potential of private equity funds, which have soared in value over the past year as investors looked for higher returns at a time of historically low interest rates.

Petershill said its business takes advantage of the association with Goldman Sachs track record and management team, which aid its ability to source acquisitions in alternative asset management.

Read More: Credit Suisse says to buy these 47 stocks set to capitalize on an inevitable economic acceleration after a dismal August jobs report

Update: This article has been updated to clarify that the Petershill Partners portfolio of alternative assets will list on the London Stock Exchange, not the unit itself.