Petershill Partners Plc has swung to a loss after the Goldman Sachs Group Inc.-backed investor in alternative fund managers marked down the value of its investments, the latest sign of how higher interest rates are hitting the industry.
(Bloomberg) — Petershill Partners Plc has swung to a loss after the Goldman Sachs Group Inc.-backed investor in alternative fund managers marked down the value of its investments, the latest sign of how higher interest rates are hitting the industry.
The London-based firm reported a $453 million loss for the year ended Dec. 31, compared with a $248 million profit for the period from March 24 through December 2021, Petershill said in a statement Tuesday.
“We marked down the carrying value of our investments in partner-firms, reflecting the impact of higher interest rates on discounted cash flow valuations and the decline in valuation multiples of comparable businesses,” Chairman Naguib Kheraj said in the statement. The change in assets’ fair value didn’t impact cash flow, he added.
The business holds minority stakes in private equity and hedge fund firms and was created from Goldman’s wider Petershill division, which was founded in 2007 in an early bid by the US bank to cash in on the alternative asset sector. Petershill’s shares have lost more than half of their value since the firm’s 2021 listing amid a global slump in dealmaking activity.
“Whilst we are disappointed that the share price of the company remains well below the IPO price, we believe this is largely a reflection of the stock market performance of the asset management industry,” Kheraj said.
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