Full Year 2024 Petershill Partners PLC Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Hubert Lam - BofA Global Research - Analyst : Hi, good morning. Thanks for taking my questions. I've got three of them. Firstly, can you talk about the outlook for you to do further acquisitions this year? You already exceeded the top end of the range of $300 million so with the acquisition of Frazier, so I was just wondering if you plan to do more this year. The second question is, can you talk about the realization environment to drive PRE? I know it's been a slow start to the year. How do you see the rest of the year playing out? And also, do you see growing pressure to exits, given the lack of exits in recent years in the funds? And lastly, in your fundraising target of $20 billion to $25 billion, I know it's unchanged, you exceeded the top end last year. Like how do you see the dynamics changing this year and what are the flagships you think that are going to be driving this fundraising for this year? Thank you.

Question: Hubert Lam - BofA Global Research - Analyst : Great, thank you.

Question: Alexander Bowers - Berenberg Capital Markets LLC - Analyst : Hi, good morning. Just two questions if I may. Just, I guess on the fundraising target of $20 billion, $25 billion, are you able to give us sort of a rough split of sort of asset cost breakdown of that in terms of private credit versus private equity? And then secondly, just on the Frazier Healthcare Partners acquisition, what was sort of the rationale for them selling you a stake? Are they looking to kind of launch a new strategy, expand geographically? Any kind of that would be helpful too. Thanks.

Question: Angeliki Bairaktari - J.P. Morgan Securities plc - Analyst : Good morning, and thank you for taking my questions. Just three questions from me as well please. So first of all with regards to the interactions that you have had with your GPs, can you talk a little bit with regards to sort of GP plans to expand into private wealth and how you are able to to support your partner-firms in that direction? And should we expect to see sort of more consolidation within the mid cap GP space as the institutional channel seems to be quite well penetrated at the moment as we are seeing more and more firms becoming larger to tap the private wealth segments? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2025 / 8:00AM, PHLL.L - Full Year 2024 Petershill Partners PLC Earnings Call Secondly, with regards to the improvement in the discount rates for the valuation of your investment firms. Is that driven by the realizations that you have made in 2024 at better marks or something else? And last question with regards to the net IRRs of the fans of your partner-firms. Thank you so much for the net IRR slide. And can you tell us how the net IRRs have been more recently, in particular in 2024, relative to history? Have you seen a deterioration in perhaps some of the younger vintages? Thank you very much.

Question: Angeliki Bairaktari - J.P. Morgan Securities plc - Analyst : Thank you very much. If I may just follow-up on the comment you made on private wealth, you now have some firms that where you own minority stakes such as Francisco Partners or Clearlake that are quite sizable in terms of their total AUM size. Have you seen those firms launch semi-liquid funds?

Question: David McCann - Deutsche Bank - Analyst : Great morning, everyone. Thanks for taking my questions. Actually one's partly been answered in the last question, but just to come back on that, on the discount rate point that Angeliki was asking about. You mentioned one of the factors was that you were seeing generally lower interest rates. I mean, to my -- what I can see on my screen, the US 10-year treasury started last year at 3.9, went up to 4.4 at the half year and ended at 4.5, so it looks like they've actually gone up. Appreciate on private market firm multiples. They did rise during the year or have pulled back a bit more, this year. So I just wondered, maybe could we revisit that question why have the discount rates gone down when it seems like interest rates have actually gone up? And there are some headwinds towards multiples being used, so just want to get some comfort around what's driven those down, please? And then second question really just more modeling type question around Frazier. Is that private equity, is the $5.5 billion AUM all fee-paying? And should we see that in Q1? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2025 / 8:00AM, PHLL.L - Full Year 2024 Petershill Partners PLC Earnings Call

Question: David McCann - Deutsche Bank - Analyst : And that's Q1 and that's private equity just to confirm that?

Question: David McCann - Deutsche Bank - Analyst : And Q1?

Question: David McCann - Deutsche Bank - Analyst : Great, thank you.

Question: Nicholas Vaysselier - BNP Paribas - Analyst : The first one on Frazier again, if we could have a bit more information on that one, I was going to ask, what's your FRE ownership on that one and the kind of accretion you expect on FRE and DE and also the mix, it seems like it's mostly skewed to FRE, but if you can confirm that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 31, 2025 / 8:00AM, PHLL.L - Full Year 2024 Petershill Partners PLC Earnings Call And then the second question, I wanted to reflect a bit on your guidance for PRE and the two extremes. Is the 15% range, should we understand it as the environment industrywide remains more or less the same as it was in 2024 and the 30% is more like a sharp acceleration and improvement from here? Thank you very much.

Question: Nicholas Vaysselier - BNP Paribas - Analyst : All right, thank you.