Petershill partially sells Accel-KKR stake for $282m

14th Nov 2024 08:39

(Sharecast News) - Petershill Partners announced the partial sale of its stake in Accel-KKR (AKKR) on Thursday, generating a nominal consideration of $282m.

The FTSE 250 company said the sale included all balance sheet investment capital in AKKR funds and a portion of management fee earnings (FRE) and performance-related earnings (PRE).

Cash payments of $196m would be received within three months, with an additional $86m due over the next year.

The carrying value of the interests sold was $253m as of 30 June, allowing Petershill to achieve a premium relative to the holding value.

It said the transaction aligned with its strategy to focus on management fee-centric earnings, and demonstrated its capacity to exit positions at favourable valuations.

Although the sale reduced Petershill's investment capital in Partner-firm funds by $155m, the company said it retained the majority of its original FRE and PRE interests in AKKR, maintaining alignment with AKKR's future growth.

The pro-forma fee-paying assets under management (AuM) were expected to decline by about $0.4bn.

Petershill said the sale was part of its broader 2024 divestment strategy, with it securing $575m from sales at a 19% premium on the carrying value of assets sold.

The firm confirmed there would be no impact on its full-year 2024 guidance.

Petershill's board declared a special dividend of 17.5 cents per share, totaling $189m, funded primarily from the proceeds of the AKKR transaction.

The dividend, payable on 20 December to shareholders of record on 22 November, would offer a default dollar-denominated payment with options for sterling or euro.

"This transaction is consistent with our strategy of focusing on high quality management fee centric earnings while also demonstrating our ability to realise assets at attractive valuations relative to their holding values," said Ali Raissi-Dehkordy and Robert Hamilton Kelly, co-heads of the Petershill business within Goldman Sachs Asset & Wealth Management, in a joint statement.

"AKKR is an exceptional firm, and we look forward to continuing to work together with our partners there."

At 0936 GMT, shares in Petershill Partners were up 1.81% at 225p.

Reporting by Josh White for Sharecast.com.