KBRA confirms ratings for Petershill Partners



NEW YORK, May 16, 2023–(BUSINESS WIRE)–KBRA confirms the issuer and senior unsecured debt rating of A for Petershill Partners Inc. (“Petershill Delaware”), a wholly owned underwriter of Petershill Partners PLC (“PHP” or the “Company”). . PHP has guaranteed a private placement of $500 million of Petershill Delaware senior unsecured debentures. The “Outlook” rating is “Stable”.

Important creditworthiness considerations

PHP’s credit profile benefits from a management team of highly respected industry professionals combined with the support of Goldman Sachs Asset Management (“GSAM”). Management has built an extensive and diverse portfolio of high-performing wealth managers. The focus on private equity, real assets and personal credit has resulted in compelling growth, durable fund structures, predictable management fees and the opportunity to participate in significant carry and investment gains over time. PHP benefits from greater diversification by fund, vintage and strategy compared to a typical mid-sized manager. PHP’s margins and earnings stability will be significantly enhanced by structural safeguards and debt/EBITDA is expected to be managed at conservative levels. Given the resilience of PHP’s cash flow generation, interest coverage should remain quite comfortable even in a stressed scenario. Balance sheet leverage is low and shareholder equity is plentiful.

The Petershill Group is a long-established leader in providing growth capital to and collaborating with independent alternative wealth managers (partner firms). PHP is managed by GSAM, whose Petershill team has been operating since 2007. In October 2021, PHP’s initial public offering (IPO) created a permanent capital base to fund partner company development, acquisitions and other growth initiatives. The formation of a separate company will be instrumental in further building the Petershill brand. PHP is 76% owned by funds managed by Goldman Sachs, with a free float of 24%. As part of the IPO, PHP entered into a seven-year operator agreement with GSAM, which will be renewed annually after seven years. PHP’s corporate governance is bolstered by a fully independent Board of Directors with extensive experience in wealth management and the financial sector.

Valuation Sensitivities

In view of the stable rating outlook, an upgrade is not expected in the next one to two years. Over the medium term, there is significant potential for upside as management executes on growth and diversification plans, maintains leverage metrics at conservative levels, and continues to generate higher operating cash flow over time. Ratings could come under pressure in the event of an unforeseen drop in partner company AUM overtime or other financial issues resulting in lower fee generation and cash flow. Nonetheless, KBRA recognizes the company’s resilience in the face of a more difficult environment. Significantly higher leverage than expected could adversely affect ratings.

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A description of all significant significant sources used to produce the credit rating and information on the methodology(ies) (including any significant models and sensitivity analysis of the relevant key rating assumptions, where applicable) used in determining the credit rating is available on the website Please use the information disclosure forms found here.

Information on the meaning of the individual evaluation categories can be found here.

Additional disclosures related to this rating action can be found in the Information Disclosure Forms referenced above. For more information on KBRA policies, methods, rating scales and disclosures, visit www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered as an NRSRO with the Securities and Exchange Commission. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA has been designated by the Ontario Securities Commission as the designated rating organization for issuers of asset-backed securities that may file a prospectus or shelf prospectus. KBRA is also recognized as a credit rating provider by the National Association of Insurance Commissioners.

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Analytical Contacts

Ashley Phillips, Managing Director (Principal Analyst)
+1 (301) 969-3185

Joanna Drobnik, CFA, Senior Director
+353 1 588 1250

Joe Scott, Senior Managing Director (Chairman of the Rating Committee)
+1 (646) 731-2438

Contact to business development

Constantine Schidlovsky, Executive Director
+1 (646) 731-1338

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