Side Letter: Petershill’s $5bn IPO; Baring Asia’s performance; GoldPoint’s key-person clause

Key takeaways from Goldman's $5bn Petershill Partners IPO. Plus: What Partners Group's performance fees tell us about 2021 deal activity and PEI charts the performance of one of Asia's largest private equity players. Here's today's brief, for our valued subscribers only.

They said it

“Junior bankers are pointing to their general fatigue with investment banking after such an intense period of dealmaking”

Anthony Keisner of Odyssey Search Partners in New York tells eFinancialCareers that huge bonuses haven’t stopped junior bankers from jumping ship to private equity.

Just happened

Petershill’s float
Those of you returning from an extended Labor Day weekend might have missed the news that Goldman Sachs‘ GP stakes unit, Petershill, is planning an IPO of a portfolio of stakes in alternative investment firms. The listing on the London Stock Exchange could be valued at more than $5 billion. This article from Private Equity International outlines some key things to know about the listing, including that the initial portfolio does not contain stakes in all of Petershill’s partner firms – such as Permira and Incline Equity Partners, which were acquired after the Goldman unit drew up plans to list the portfolio, PEI understands.

Also interesting is the decision to list in London. A source close to the process tells us it was the sophistication of the London market and its expertise in understanding listings of this type that led to the decision. However, we wonder if a wish for greater exposure to European investors, or the fact that Goldman itself is already listed in New York, were factors driving the decision. Either way, Goldman looks set to provide an exit to LPs in a strategy that’s come under fire in the past for a lack of clarity over exit routes.

Everything must go
Partners Group‘s latest interim statement – published on Tuesday – is a testament to this year’s frenzied exit environment. The Swiss-headquartered firm reported 442 million Swiss francs ($483 million; €407 million) of performance fees for H1, a 693 percent increase from the same period last year. This income represented 39 percent of revenues in the first half of 2021, compared with 9 percent in H1 2020, and is expected to make up 40-45 percent of full-year revenues. The firm plans to continue “taking advantage” of the favourable exit environment in the second half of this year.

“The development of performance fees in 2021 also include our expectations that some of the performance fees that were expected for 2022 to be brought forward as a select number of programs and mandates may meet their hurdle rates earlier than anticipated,” the statement noted.

Partners Group isn’t the only firm to have had an active H1, with exits, dealmaking and fundraising all potentially on track to break records. Such was the urgency that some firms had to forgo their usual summer slowdown, as PEI reported in August.

GoldPoint’s exodus
GoldPoint Partners, the PE subsidiary of the $593 billion New York Life Insurance Company, is facing a key-person crisis after six senior executives – including its chief exec and CIO – resigned en masse. The departures trigger key-person clauses in three of GoldPoint’s active funds and live fundraises have been halted while LPs decide how to proceed. Though key-person events can have serious ramifications for PE funds, GoldPoint is fortunate in that NY Life, one of its largest LPs, is expected to continue funding the firm regardless.

The clauses governing key-person departures have been coming under heightened scrutiny from LPs during the pandemic, with some pushing for more consequences for unresolved events, as PEI reported in March.

They did the math

Baring in mind
Baring Private Equity Asia is back seeking $8.5 billion for its next flagship fund, and recent documents from Rhode Island State Treasury shed light into how the fund might look. We’ve taken the liberty of condensing the key details for you here, including where the firm has been deploying its capital and how five of its prior funds have performed so far. Here’s a visual excerpt:

Essentials

Triago’s talent injection
Though the path from placement agent to GP is well-trodden (and perhaps nowhere more so than in Asia), the opposite move is less common. Valerie Auffray, former head of investor relations and a 13-year veteran of London healthcare firm Apposite Capital, this week joined Triago as partner and head of the UK, according to a LinkedIn post. It’s an interesting time to join a placement agent, with many firms competing to attract secondaries talent as the fundraising process becomes more of a slog for less-established firms.

Return to office
As summer draws to a close and holidays come to an end, it seems that an increasing number of offices are – whisper it – finally starting to reopen. Keen to know how the PE industry was handling the return to work, PEI reached out to five executives, including FirstPoint Equity‘s Julian Pearson and Asante Capital Group‘s Warren Hibbert, to get their top tips on navigating the new normal. Here are some highlights:

  • Try meeting for a walk rather than in a busy coffee shop
  • Keep a mask in your back pocket to avoid leaving it in your jacket
  • Consider walking, scooting or – for the brave among us – skating to work in lieu of public transport

Dig deeper

LP meetings. Here are some LP meetings to watch out for this week.

8 September

9 September

10 September


Today’s letter was prepared by Alex Lynn and Adam Le