Petershill Partners has declared a special dividend of 9 cents (7p) per share following a series of successful deals and a lucrative asset-raising round, signalling a robust return to growth.
Backed by Goldman Sachs and listed on the London Stock Exchange for the past three years, Petershill Partners reported an income increase to $146m (£111m) for the half-year ending on June 30, up from $138m (£105m) in the previous year. The firm achieved an adjusted profit after tax of $94m (£71m), rising from $68m (£51m). This contributed to an adjusted earnings per share of 8.5 cents for the first half of 2024, marking an increase of 2.5 cents (1.8p).
Following the strong earnings, partners at the firm have announced a special dividend of 9 cents, noting its addition to the progressive dividend and a tender offer completed during the period.
In the first half, Petershill executed four acquisitions totalling $205m (£155m), including a notable $150m (£113m) purchase of Kennedy Lewis Investment Management and additional stakes in three existing partner firms. This flurry of activity occurs after a challenging phase where the London-listed company experienced a decline in earnings in 2023 amidst what it referred to as a ‘challenging external backdrop.’
Earlier in the month, Petershill offloaded its interest in hedge fund LMR Partners for $258m (£195m), a sale that observers perceive as addressing investor concerns over the firm’s asset valuation accuracy. Petershill Partners has experienced a significant discount in their share value, trading at around 40 per cent below book value for the majority of this year.
Global co-heads Ali Raissi-Dehkordy and Robert Hamilton Kelly remarked: ‘During the first six months of 2024, we were pleased with our Partner-firms’ ability to raise $14bn (£11bn) of fee-eligible assets, despite the challenging fund-raising environment.’ They further highlighted: ‘The robust asset raising and growth in Fee-Paying assets under management (AuM) has translated into good growth in gross management fees and fee-related earnings during the period.’ Moreover, they noted: ‘We also completed $205m (£155m) of acquisitions during the period, including a stake in the alternative credit manager Kennedy Lewis Investment Management which further diversifies our AuM exposure across private market strategies.’
Petershill Partners’ recent financial and strategic manoeuvres signal a strong recovery and future potential for growth, indicating a positive outlook despite prior economic challenges.