Petershill Partners trims full-year outlook

Shares in Petershill Partners fell in morning trading on Friday, after the investment firm trimmed part of its full-year guidance.

The London-listed business, which specialises in private equity and other private capital strategies, reported total income of $138m for the six months to 30 June, down from $171m a year previously.

Partner fee related earnings (FRE) fell to $99m from $110m, while partner distributable earnings slipped to $125m from $169m. Adjusted earnings before interest and tax fell to $120m from $153m.

Petershill said the economic environment had been "tough", with a slower investment backdrop delaying the activation of management fees and subdued transaction and advisory fees.

It therefore trimmed its guidance on partner FRE, "principally to reflect the slower deployment environment impacting timing of fee activations". Full-year partner FRE is now expected to come in between $190m and $210m, compared to a previous forecast for between $220m and $250m.

Partner realised performance revenues were expected to be below medium-term guidance of 20% to 30% of total partner revenues for the full-year.

Petershill full-year forecasts for organic fee-eligible assets under management (AuM) raise and realisations remained unchanged, however. Aggregate partner-firm AuM was $300bn as at 30 June, while aggregate fee-paying AUM was $196bn, up 13% and 7% respectively.

The firm noted: "We recognise that any continued delay in fund activations, or continued reduced transaction activity, may defer and impact future FRE. Furthermore, continued market uncertainly may delay deal activity and the return to more normal levels of PRE and partner realised investment income.

"However, we believe that our partner-firms are well position for when activity picks up given considerable capital raised since 2022."

As at 1000 BST, shares in Petershill - which is operated by Goldman Sachs Asset Management - were off nearly 8% at 162p.