Tuesday, January 31, 2023

Goldman Sachs’ Petershill bullish on alts fundraising


  • 23 partner firms have raised $55bn overall this year
  • Petershill dealmaking in Q3 focused on private capital
  • Fort and Pelham, two Petershill HF stakes, have struggled in 2022

Petershill Partners, the Goldman Sachs unit holding stakes in 23 alternatives managers, grew AuM 6% in Q3 on inflows and new deals.

The group, which listed in London last year, now manages $282bn (of which $189bn is fee-paying). Its partner firms, which include Caxton Associates, have raised $55bn this year, ahead of expectations.

It struck deals to acquire stakes in LLR, a private equity manager, and SLR Capital Partners, previously known as Solar, a direct lending manager, in Q3, as well as a follow-on deal taking additional equity in Kayne Anderson Real Estate.

There was little mention in the results of hedge funds, with more focus on the private capital side.

Petershill has hedge fund stakes in Caxton Associates, Fort Investment Management, Knighthead Capital, LMR Partners and Pelham Capital.

Two of the five — Pelham and Fort — have had performance struggles this year, but Caxton has achieved big gains in macro.

“The macro environment is more challenging but we continue to see long-term structural tailwinds supportive of growth in alternatives and private capital,” said Ali Raissi, co-head of Petershill, on a results call.

The firm was bullish on the fundraising environment, adding that there had been more interest from the private wealth segment in alternatives.

Petershill’s partner firms:

  • Accel-KKR
  • Arclight
  • ACP
  • Arsenal Capital Partners
  • Caxton Associates
  • Clearlake
  • Fort Investment Management
  • Francisco Partners
  • General Catalyst
  • Harvest Partners
  • Industry Ventures
  • Kayne Anderson Real Estate
  • Knighthead Capital
  • Lakewood Capital Management
  • Littlejohn & Co
  • Pelham Capital
  • Piney Lake Capital
  • LMR Partners
  • Riverstone
  • Slate
  • STG
  • Westbrook Partners
  • Wind Point Partners