Petershill Partners backs guidance after modest quarterly growth

Petershill Partners reiterated its full-year guidance following a double-digit rise in partner fee related earnings in the third quarter of 2023 despite a “challenging” market backdrop. 

Partner fee related earnings totalled $53m in the third quarter, 13 per cent higher than the year prior and six per cent higher than the quarter prior. The growth reflected a 21 per cent increase in net management and advisory fees in the quarter, the firm said. 

Partner-firm assets under management stood at $303bn as of September 30, virtually flat against the prior quarter but up seven per cent year-on-year.

Fee-paying partner-firm AUM stood at $197bn. This was also virtually unchanged against the previous quarter and up a modest 4 per cent against the year prior.

Petershill’s Ali Raissi-Dehkordy and Robert Hamilton Kelly commented: “The asset raising highlights the strength of our Partner-firms given the challenging market backdrop.”

There are signs that inflation is moderating and an expectation for rates to stabilise, but at the same time broader macro uncertainty persists as we head into the year end. We remain highly selective and focused on the risk-adjusted outlook for new investments.”

As a result, the FTSE 250-listed investment firm said it remains “highly selective,” adding it had made no new investments so far this year.

Petershill also reaffirmed its guidance for the full-year, expecting between $190m to $210m in partner fee related earnings. At worst, this would be down 11 per cent from $213m the previous year.

Last year was the firm’s first full-year as a London listing. It floated back in September 2021 with a price of 350p per share, giving it a market capitalisation of around £4.0bn. The stock has struggled ever since, losing over half of its value.