Petershill Partners posts solid rise in assets under management

Petershill Partners reported a significant increase in its gross fee-eligible assets under management for 2023 on Friday, for a total of $23bn, in line with its guidance.

The FTSE 250 company said aggregate assets under management of partner-firms reached $304bn, showing a slight increase over the quarter and 7% year-on-year growth.

Meanwhile, aggregate fee-paying partner-firm assets under management reached $221bn, marking a 12% increase during the quarter and a 14% increase compared to the prior year.

Petershill said it achieved organic gross fee-eligible assets under management growth of $3bn for the final quarter of 2023.

Partner-firms attracted $23bn in fee-paying assets under management gross inflows during the quarter, with around $20bn coming from previously-raised fee-paying assets under management switching on during the same period.

The total fee-paying assets under management gross inflows for 2023 amounted to $31bn.

Additionally, partner-firms realised $1bn of fee-paying assets under management during the quarter and a total of $7bn in 2023, in line with the 2023 guidance of $5bn to $10bn.

The positive investment performance of partner-firm funds contributed to a $2bn increase in fee-paying partner-firm assets under management during the quarter and a $3bn increase for the entire year.

As of the final quarter of 2023, partner-firms held $8bn of assets under management that were not yet paying fees, down from $28bn in the third quarter.

Looking ahead to 2024, Petershill Partners estimated an organic gross fee-eligible AuM raise in the range of $20bn to $25bn.

It also anticipated realisations of $5bn to $10bn in 2024.

The $8bn of assets under management that were not yet paying fees as of the fourth quarter of 2023 was expected to become fee-paying during the course of 2024.

At 0812 GMT, shares in Petershill Partners were up 0.66% at 161.26p.

Reporting by Josh White for Sharecast.com.