Petershill Partners Share Discussion Threads

[riskvsreward] 08/9/2023 17:19

If you invest in a company, then buyback is a good thing. Otherwise you should not invest in it.

[casholaa] 08/9/2023 16:36

As soon as I hear the term 'buyback' in an rns, I hold tight, I dare say that many do so.

[topvest] 08/9/2023 13:37

They are trying to mop-up shares in my view as the bid size for selling is 6 times higher than buying. So, they are trying to force out holders for the buy-back.

[casholaa] 08/9/2023 12:40

I can't say that I'm totally p*ssed off with them, given that they may be able to mop-up shares cheaply. I'm a little upset thinking that they may have known the figures from before or even at the time of the last update.

[johnwig] 08/9/2023 11:07

jonwig, spectoacc, topvest! What a bunch of losers. Between them they've got about 20 totally farty shares. That still doesn't stop them from pontificating pompously and telling other more intelligent investors what to do. Their aggregated losses come to £764.23 and they're almost totally wiped out. They have to wait for next week's pensions in order to eat, LOL.

[mbdx7em21] 08/9/2023 11:05

look good value at these level - steep discount to NAV and a well run company

[jonwig] 08/9/2023 10:06

They do generate cash (and pay it out generously), so their accounts are not a mere vanity project. And as many PE firms are discovering, they can sell assets close to carrying value.

[cc2014] 08/9/2023 09:48

I have no idea Topvest. I have read the accounts several times, I've read the RNS and I really cannot get a good grip on whether I want to own this and at what price. I'm guessing based on the share price the market can't either.

What I keep coming round to is that at this point in the ecomic cycle, this isn't the place to be. Then I keep looking at the fees and incentives which look excessive.

So, some discount is required but is the discount enough to tempt me int. I'm not sure. What is clear is that the buybacks are driving the share price and they are significant and could be raised above the current 50m.

I may be tempted once I can see the share price stabilise.

[topvest] 08/9/2023 09:36

Expect a bit of a bounce this afternoon, when the buy-backs kick in. What do you think?

[topvest] 08/9/2023 09:35

Back to a 50%+ discount. Lowering of guidance taken badly, but not altogether surprising. Its very sensible to stop acquisitions at this point in the cycle, given high US prices, when they can buy back shares on a 50% discount. I can see this being bid for later in the year.

[jonwig] 08/9/2023 09:06

I only look at percentage gainers/losers. They are at no. 11 on that one!

[topvest] 08/9/2023 08:55

Clearly not in the price, given they are the largest loser of the day!

[jonwig] 08/9/2023 07:16

Yes, forgot to mention nav of 327p.

[topvest] 08/9/2023 07:00

Yes, doing OK but guidance for the full year lowered. I think its sensible that they have slowed down the acquisition pipeline for now. Still on a c47% £ discount even after £ strength and share price ticking-up to c175p.

[jonwig] 08/9/2023 06:15

H1 results down (surprised? Should be in the price):



Summary:

"During the first six months of 2023, the economic environment remained tough, with the slower investment backdrop delaying the activation of management fees and subdued transaction and advisory fees. The broader muted realisation environment has impacted Partner Realised Performance Revenues, although the significant level of accrued performance revenues supports the medium-term outlook. We have also seen recent realisations occur at a premium to their holding values. Despite the challenging backdrop, the diversified asset raising profile of our Partner-firms was reflected in the $14bn in fee eligible AuM raised. This asset-raising supports future FRE growth as fees become activated and the pace of cost growth moderates. We expect a stabilisation in Partner FRE during the remainder of 2023, as firms bed down increased headcount and turn on fees from funds raised in prior periods. As we look forward from today we recognise that any continued delay in fund activations, or continued reduced transaction activity, may defer and impact future FRE; furthermore continued market uncertainty may delay deal activity and the return to more normal levels of PRE and Partner Realised Investment Income. However, we believe that our partner-firms are well positioned for when activity picks up given considerable capital raised since 2022.

Our portfolio of Partner-firms remains robust with the carrying value of our Partner-firms broadly stable while our high profitability margin and cash conversion underpins our strategy for growth and capital return to shareholders. We have completed $12.4 m of our previously announced $50m share buyback programme and the interim dividend is consistent with our progressive dividend policy. Our Partner-firms' capital raising activity underpins our ongoing confidence about our medium-term prospects and provides the platform to enable significant future distributions to shareholders".

[topvest] 30/8/2023 14:22

I've decided to take a small opening position given the downtrend has reversed with a golden cross today.

[jonwig] 21/7/2023 06:12

Q2 update:



This looks quite OK, and they are maintaining FY guidance.

[jonwig] 06/7/2023 14:03

Spec - Tempus makes some fair points, but the Chairman has been a persistent buyer - even 45,000 more on 23/06.

[casholaa] 06/7/2023 08:01

However, I think they will be distributing $3.35bn/£2.2bn among 1.34bn shares which I think works out to 164p payout per share and you get to keep your shares? As the buyback continues, I think that the payout per share increases.

[casholaa] 06/7/2023 07:57

Knock off circa 10% for inflation and currency exchange devaluations.... still looks good to me.

[casholaa] 06/7/2023 07:52

p.s. If they were to leave 100m shares the share price should in my mind on a very simple calc be circa north of 500p, possibly 665p on an share price of 165p? I never was good at maths. Have I got it wrong?

[casholaa] 06/7/2023 07:41

I think what we're waiting for is $3.5bn/£2.75bn vs 1.34bn shares. At 165p (circa current sp) 1.34bn is £2.21bn and then £500m still left over in the pot. That's a simple calc. It would be great if the share price were about 369p. Where have I got it wrong? Did you see their 'borrowings'?

[spectoacc] 06/7/2023 06:29

"The 25 alternative asset managers in which Petershill invests generate management fees of roughly 1.5 per cent to 2 per cent of the capital under management, plus performance fees of 20 per cent, typically on any gains generated on the underlying investments above 8 per cent. As a minority shareholder, Petershill gets a slice of that fee income. So what’s the problem? A rapid rise in interest rates over the past 18 months has squashed the returns generated by buyout firms and stifled fundraising activity. For Petershill, it casts doubt over the strength of its income stream and whether it will be forced to mark down the value of its assets further."

"..Then there is the extra layer of fees carved out by Goldman Sachs Asset Management, which takes a cut for managing the company of 7.5 per cent of revenues generated."

[spectoacc] 06/7/2023 06:28

An "avoid" from Tempus, not that these tipsters know much, but might be worth a read: