Goldman Sachs is planning to float the assets of its Petershill Partners unit on the London Stock Exchange (LSE) to take advantage of the ongoing private equity boom.
The firm is targeting a valuation of more than $5bn in the initial public offering (IPO), which will consist of a sale of around $750m of new shares as well as existing ones.
The London-based business invests in private equity and hedge fund firms. It collectively manages $187bn in assets.
Following the listing, Petershill’s vehicle will operate as a stand-alone company under Goldman Sachs Asset Management.
Petershill Partners non-executive chair Naguib Kheraj said: “Through a London listing, Petershill Partners would make available to public market institutional investors a unique opportunity to access stakes in a number of leading privately owned alternative asset managers.
“Through Petershill Partners, investors would benefit from the expertise of Goldman Sachs as its operator both in terms of managing the existing portfolio and developing opportunities to make additional future investments in this rapidly growing industry.”
Goldman Sachs’ Petershill group co-head Ali Raissi called the IPO ‘a natural next step in the evolution of the offering to Partner-firms’.
He also said the move would help the firm establish a permanent capital source while demonstrating long-term strategic alignment and partnership.
Petershill’s plans to go public comes at a time when investor flocks to private equity market, attracted by high returns and low interest rates.
Earlier this year, UK-based buyout firm Bridgepoint listed in London.