Petershill Partners Share Discussion Threads

[craigso] 20/1/2025 11:13

Several broker upgrades this morning. Onwards and upwards... :)

[cb7] 17/1/2025 07:04

reassuring that the sale was at a 62% premium to book value - bodes well for the rest of the holdings.
Unusually, I received loan notes as part payment in a takeover early last year, at 12% pa, paid quarterly and compounded!

[craigso] 16/1/2025 10:51

Excellent job by GS. Very happy I decided to stay invested after the tender offer, after hanging on through the doldrums of 2022-2023.

It seems to me, though, that the share price ought to have bounced even more. Up 11p today, which is roughly the amount of the special dividend - apparently set at the level of the gain after tax.

But there is also upside from converting an investment valued by the market at a 25% discount into a loan note earning 10% interest. Close to cash, if not better - although it will be reinvested. But given the recent track record, people should be begging GS to invest more money in these PE shops...

[cb7] 16/1/2025 08:09

Another sale and another special divi. The 2024 return and share price action has been excellent - can it continue?

[casholaa] 12/12/2024 16:53

Last year or the year before I'd swear that I was looking for around 450p. I don't know where I got that figure from though.

[craigso] 10/12/2024 12:06

Up and up and up. :)

Now we're getting close to the end of the "easy part" though - a narrowing of what was a fairly ridiculous discount - and now having to decide whether a GS-dominated business is worth remaining invested in.

Big broker upgrade from JP Morgan though.

[craigso] 21/11/2024 10:43

It's certainly fun when the market finally catches up with the value gap you'd identified months ago...

But dropping 18p on ex-dividend day on a 17.5 US cent dividend???

[casholaa] 19/11/2024 18:19

Hehehe me too!

[marksp2011] 19/11/2024 14:24

I have a nose bleed

[craigso] 15/11/2024 13:15

Yes, the stock market does seem to price PHLL like it owns a bunch of PE assets at inflated values - like most other PE investment trusts - and ignores the fee revenue from owning all of these PE shops.

Clarifying that - and dumping the PE assets at or above NAV - will go a long way to narrowing the discount here. (even though the employees at many of these shops probably extract a fair amount of the fee income as salary / bonus)

[bairstoww] 14/11/2024 14:58

The strategy isn't complicated. PHLL invests in a number of (US) private equity firms. These firms either own their underlying companies direct (hence PHLL owns a stake, too) or they bundle their companies into funds which they sell on, and charge fees (hence PHLL gets fees, too).

The opening bit today:

Petershill Partners has completed a partial sale of its stake in AKKR, consisting of the entirety of its balance sheet investment capital in AKKR funds and a small portion of its interests in AKKR management fee earnings ("FRE") and performance related earnings ("PRE").

explains that it's keeping most of its fees part (including performance fees, which won't be small). The announcement follows by explaining that it in general wants to sell stakes and keep fees, which looks a less risky way to go on.

The FT said last week that Trump is likely to bring increased M&A into the US markets, and the leading firm in US M&A is Goldman Sachs. Given the investment strategy of PHLL, I can imagine a stream of these realisations at big uplifts, and a stream of special dividends. This is just the start!

Here's the Accel-KKR home page:

[casholaa] 14/11/2024 13:46

It's above the wma 20 & 50 on daily + monthly and above the 20 on the monthly. I'm hoping this one will be good for me in 2025.

[marksp2011] 14/11/2024 13:09

This is turning out to be my share of 2024

[craigso] 14/11/2024 08:50

I can't pretend to understand the inner workings of Petershill.

But the large discount seems crazy when they are able to sell holdings at a premium and make large special dividends / tender offers. Another 13p+ on its way...

[casholaa] 17/9/2024 12:18

Special divi here means getting paid twice

[craigso] 17/9/2024 08:02

I would rather have had another tender offer - I tend to get much more than my official entitlement (through II) - but I can understand why two tenders in a calendar year might have been a bit much. I suppose we'll have to live with a special dividend. :)

[cb7] 05/9/2024 08:43

re another tender - agreed and it may be nearer the 250p mark

[craigso] 05/9/2024 08:25

$258 million will fund another nice little tender offer. Hopefully that's the plan, instead of reinvesting the proceeds into another asset manager.

[marksp2011] 26/7/2024 11:37

And we have reached the tender price. Now we can all exit at 214

I am hoping for another tender offer next year c 245

[makinbuks] 15/6/2024 17:51

Logically I agree with you. Some talk on here of GS maxing the returns for their clients at the expense of PI's but from this entry price that should be positive for all. I'm underwater, didn't tender and am tempted to add to average down

[tabhair] 13/6/2024 16:03

lynton3, I bought the day of announcement of the tender. My only reason was to take part in the tender and get the dividend. I tried to tender all my shares, but was allocated just half at £2.14.

Haven't decided to do with the remaining half. In my experience, this type of tender offer is usually a very bullish indicator for the medium/long term. Leaning towards just holding on.

[makinbuks] 05/6/2024 07:49

So we have an overhang of 60m shares held by people who want to sell at about this price

[marksp2011] 31/5/2024 08:55

GS are buying 356p of assets for 214p

Keep this up and they will be able to take it private then sell it again :)

What a jolly wheeze !

[makinbuks] 22/5/2024 14:38

My view is that most GS clients were in this pre IPO. GS think there's a constant flow of sellers from the IPO who are holding the price back. It therefore makes sense to do a tender 15% above the market price but well below NAV because their clients benefit in three ways: weak holders exit in one operation rather than providing a drag, NAV increases and discount to NAV decreases. That's why its happening. What is surprising to me, and other more knowledgeable may explain, is that the market price isn't closer to the tender level. Does that imply people are too impatient to be paid and prefer o sell into the market at a lower price? Strange in a stock like this. I expect a tender offer to now become an annual event as it is at Tetragon. Personally, I am not selling as I believe their timing was lousy for the IPO but conditions have now improved and will continue to do so