Goldman Sachs (GS) is planning an initial public offering (IPO) for alternative asset managers Petershill Partners, in the latest move to capitalise on a raging market for private equity.
The Financial Times and Reuters said the deal could be worth more than $5bn (£3.6bn), citing sources familiar with the matter.
Petershill Partners said it would look to list on the London Stock Exchange. The firm has minority stakes in 19 alternative asset companies — these have a combined $187bn of assets under management.
The float would make it one of the largest alternative investments businesses in London, sitting among competitors such as Dyal Capital, Blackstone's Strategic Capital Holdings (BX) and AlphInvest Partners.
Over the course of the pandemic alternative assets and private equity has boomed. There have been near-record buyouts of companies and investments made in the UK market as well as ongoing high profile bidding wars for UK staples such as Morrisons (MRW.L) supermarket.
There were 401 private equity buyouts over the first half of the year in the UK, worth more than $49.8bn, according to data from Refinitiv. That’s the highest number in the first half of a year since data began being collected in 1996. The second highest was in 2018, when 297 companies went private.
The move follows private equity house Bridgepoint (BPT.L) onto the London market — an IPO that raised $1.3bn and has since seen a soaring stock price.
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The IPO is a strategic move for Goldman Sachs, heading towards business that earn regular fees and making the investment bank less reliant on volatile investments such as equities and bond trading.
Low interest rates have created a dream environment for private equity, which typically relies on borrowing to fund its deals. The global buyout industry has raised a record $1.6tn (£1.15tn) to spend, according to data from Preqin. Funds are now under pressure to spend that cash.
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