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20 Things You Didn't Know about Petershill Partners

investment firm

Are you aware of a company called Pertershill Partners? You might already know that they are an investment firm, but what else is there to know? As it turns out, they are quite different from most of the other companies that do similar types of business. Some of these things might surprise you. Here are 20 of the things that make them stand out.

1. They don’t work with just anybody

One of the things that sets this company apart is that they don't work with just anybody. In fact, they work exclusively with other firms of a similar nature. Primarily working with banks and other investment companies, they have developed a very specific investment strategy that works well for them and for the other companies that they have decided to partner with. As such, they do indeed consider everyone that they work with as a partner, not a client.

2. They carefully select their clientele

Because everyone that is a client is essentially a partner, the company is very careful about how they select their clientele. They only work with companies that have been around for quite some time. Furthermore, each company has to be able to prove its ability to function independently of their assistance. In short, they won't partner with another company if it doesn't have a proven track record of being financially successful over a period of several years.

3. They lead the industry in their chosen field

Since they are choosy with their partnerships, they have quickly become a leader in their chosen field. This has allowed them to have a certain amount of leverage that most other companies would not have. It also gives them an opportunity to enjoy new avenues of growth that might not otherwise be available if it weren't for the partnerships that they have developed.

4. They’ve been doing business for more than a decade

To date, they have been doing business for 14 years. Over that time, they have proven that they know exactly what they are doing. The majority of this has been in the form of helping other businesses find new ways to make even more money, in addition to providing further capital when it's needed.

5. They are proof that minority stakes investing can work

Most of their external capital comes from minority stakes investments. It is proof positive that such investments can indeed work when done properly. While a lot of people have a tendency to throw these types of investments to the side (opting instead for something that can make large amounts of money in a very short amount of time), Petershill Partners has essentially decided to pick flowers from a field that has been largely undisturbed. As such, many of the investments that they have chosen have proven to be quite lucrative, even if overlooked.

6. They operate on the principle of shared capital and assets

Because they operate on the principle of shared capital, they and their partners have the opportunity to gain extra capital whenever necessary. You might think of it like a private bank. All of the partners come together in order to finance a particular share of capital that can then be shared and disseminated throughout all of the partners whenever necessary. It provides a lot of extra options for these partners when they are financing a new project or acquiring another company. It also means that they aren't forced to go to traditional banks in order to take out a loan in the same manner as virtually every other business.

7. They have partnered with Goldman-Sachs

They and Goldman-Sachs have made the decision to partner with one another so they can each benefit the most from each company’s expertise. While many details of this partnership were not made public, it is believed that the deal itself is worth somewhere in the neighborhood of $5 billion.

8. It’s all part of their post-pandemic investment strategy

According to both Petershill Partners and Goldman-Sachs, this deal is all part of their new investment strategy that has only taken hold in the wake of the pandemic. Obviously, the way companies did business changed when the pandemic struck and that obviously changed the way that everyone made money. They quickly realized that they would have to adapt the way that they conducted business in order to remain viable and that is precisely what they did. As a result, the two companies plan to utilize each other's strengths in order to make both of them more resilient.

9. It’s not always about venture capital

In many cases, the company utilizes venture capital in order to make money, but that isn't always the case. They also regularly deal with asset management, hedge funds and private equity. The overwhelming majority of it is completed through their investment in minority stocks, something that helps both them and their partners make more money.

10. They are fiercely proud of their native London

The company is fiercely proud of their London roots, something that they have stated unequivocally many times over. As a matter of fact, they are so fond of their London heritage that they have a tendency to base the overwhelming majority of their business deals in London if at all possible.

11. They flourish when private equity rates are low

As you might have already guessed by now, the company has a tendency to do exceptionally well whenever private equity rates remain low. Since they deal with private equity in the market a great deal, it only makes sense that they would perform better when rates are lower. It gives them an opportunity to make more money because they don't have to spend as much in order to get the private equity they want. By the same token, it makes these types of deals more appealing to their partners. Since it is a partnership, they get a certain amount of funds from those deals, thereby increasing their own bottom line.

12. Goldman-Sachs plans to take the company to the public

As previously discussed, Goldman-Sachs and Petershill Partners have been in a partnership for several years. Goldman-Sachs plans to take the company public on the stock market within the next few weeks to few months, depending on how fast things move. If things go as planned, it could be a very lucrative business deal for both companies.

13. It’s expected they will make more than $750 million on the deal

In fact, it looks like Goldman-Sachs could actually make more than $750 million out of the deal, even though they are essentially acquiring a certain part of Petershill Partners. That is precisely why they are so interested in making a formal business deal with the company. For them, it has become apparent that it would be more lucrative for them to run and manage Petershill Partners as opposed to merely being a partner with the firm in the same manner that they have been for the last several years.

14. They plan to focus on companies offering pension funds first

They have a very specific business plan in place. During the first several months after they go public, they plan on focusing on other companies that offer pension funds which have been proven to perform well in the past. They want to provide those companies with an opportunity to increase those pension funds and simultaneously provide an extra level of security by making them partners as well.

15. They goal is to give Goldman-Sachs managers control over the company

Eventually, the individuals that Petershill Partners plan to give managers at Goldman-Sachs control over the company, to a certain extent which will be fully disclosed in future contracts. Essentially, the company will still act as an independent firm, but it will have an entire management team from Goldman-Sachs that is dedicated to running its day-to-day operations.

16. It has essentially been this way since 2007

From a practical perspective, it doesn't really change the way that the two companies will do business. Instead, it merely changes it on paper. There has been a management team from Goldman-Sachs that has been running Petershill Partners since 2007. However, it has been on an informal basis. This business deal merely solidifies that partnership and ensures that it will continue well into the future.

17. Going public could increase their financial worth

In addition to solidifying their business partnership, this formal change that allows them to go public could well increase the financial worth of both companies before everything is said and done. In reality, it's all about making sure that both companies are able to make as much money as possible. It's all about big business and this type of operation is typically how big business is accomplished.

18. They plan to act as an umbrella company for other partners

Of course, these two companies plan to work together to act as an umbrella company for all of their other partners. It is essentially what they have been doing all this time, but there are certain advantages to making it a legal, binding agreement. Once they actually go public and have that agreement in place, they will have both the buying power and the financial security to do things that they might not have been able to do in the past. All the while, they can act as an umbrella for their other partners who may not have the same buying power in place. The goal is to allow all of their partners to make enough money to grow and expand over a period of several years. In the end, it's something that can benefit everyone that is involved, not just the two biggest companies conducting the deal.

19. It could set the pace for other companies to conduct similar deals

The goal is 2 create a company that operates unlike anything else that is currently out there. As previously mentioned, the company already does this for all practical purposes. However, once this deal goes through, they will be listed as a single entity as opposed to being listed as two separate companies. Eventually, the hope is that many of their other partners will also agree to enter into the same types of binding legal agreements which give a certain amount of control over to the parent company, all while still giving significant income to both sides. It could even set the pace for other companies that are completely unrelated to do something similar in the future. Although that doesn't seem likely to happen in the immediate future, it definitely is a possibility later on down the road. Right now, everyone is sort of waiting with bated breath to see how this particular deal ends up going before they decide to jump on the bandwagon and try something similar. However, that does not mean that companies are not jumping on the bandwagon for Petershill Partners in order to become a partner with them in their own right.

20. They already have 19 other companies onboard

To that end, they already have 19 other companies that are on board with them and more are considering doing the same thing each and every day. Once the deal goes through, there is no telling how many companies will want to become a partner in order to experience the benefits associated with that type of financial security. One thing is certain, it will definitely be interesting to see where all of this goes over the course of the next three to five years, especially as the world begins to transition from its current state as a direct result of the pandemic into a more stabilized way of doing business. There is no doubt that some of the newer methods of doing business that have come about as a result of the pandemic will continue to stay in place long after it is a thing of the past. In fact, that is precisely what Petershill Partners is counting on. Either way, it seems like they have secured their place in the global business economy for years to come.

Allen Lee

Written by Allen Lee

Allen Lee is a Toronto-based freelance writer who studied business in school but has since turned to other pursuits. He spends more time than is perhaps wise with his eyes fixed on a screen either reading history books, keeping up with international news, or playing the latest releases on the Steam platform, which serve as the subject matter for much of his writing output. Currently, Lee is practicing the smidgen of Chinese that he picked up while visiting the Chinese mainland in hopes of someday being able to read certain historical texts in their original language.

Read more posts by Allen Lee

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