Half Year 2024 Petershill Partners PLC Earnings Call Transcript

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

Question: Angeliki Bairaktari - J.P. Morgan - Analyst : I would like to ask a few, please. So first of all, thank you very much for the information on page 8, showing the existing fundraising for some of your partner firms. How should we think about the fee-eligible AUM raise in the second half of the year and also in 2025, given the ongoing fundraisings that you see among your partner firms? Second question, in terms of the discussions that you are having with your partner firms, do you see them making steps in private wealth distribution? We know that private wealth, especially in North America, is considered a big future opportunity for AUM growth. So I was wondering whether that also factors into your expectations for growth over the medium term? And last question, how should we think about performance revenues and investment income in the second half of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 17, 2024 / 8:00AM, PHLL.L - Half Year 2024 Petershill Partners PLC Earnings Call

Question: Angeliki Bairaktari - J.P. Morgan - Analyst : If I may just follow up on that. Do you have any partner firms that today have semiliquid funds that are already in issuance or not really because they are mid cap and they're looking to tackle the institutional side at this stage?

Question: Nicolas Vaysselier - BNP Paribas - Analyst : There's three I'd like to tackle. First one is on the FRE margin dynamics. There's been quite an improvement between Q2 and Q1. If you can run through the different dynamics. I know there's various contributors there like fee-paying AUM growth, fee margins as well the blended fee margin, but also I'm interested in the dynamics of FRE expenses at the partner firms. It's been going down quite a lot Q-on-Q and over recent quarters, it's been down as well. So I'd like to know if you expect the FRE margin the current one, the Q1, if you think it's sustainable, particularly into H2? And how do you feel about your guidance for now? That's the first question. Second question is on your -- the valuation of your investment portfolio. So I've seen what you've been talking about on the discount rates. But if I look at your blended FRE multiples, they have been flat to slightly down over the period. We've seen material rerating of the sector over the summer. So I'd like to know how should we think about it about value creation into H2 given the rerating of the sector and also the U.S. long-term rates going down significantly? And lastly, a bit on capital allocation. You've mentioned it on the presentation, but you trade at a 47% discount to NAV, PE ratio is still in the low teens, depending on what time frame we look at. So I'd like to know how you think about the trade-off between share buybacks and M&A? And also why choosing a special dividend rather than further share buybacks?

Question: Nicolas Vaysselier - BNP Paribas - Analyst : That is clear. Just a very quick follow-up on the FRE question. Was there any significant one-off at your partner firms in revenue terms like catch-up fees, late fees in Q2? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 17, 2024 / 8:00AM, PHLL.L - Half Year 2024 Petershill Partners PLC Earnings Call

Question: Alexander Bowers - Berenberg - Analyst : Just two questions from my side. Firstly, on performance fees, are there any specific funds or managers that are big drivers for H2? And are you able to provide a rough split around whether these fees are from sort of private asset class investments versus absolute return funds? And then my second question was just on fundraising. On the specific fundraising news you called out on page 11, so for General Catalyst, Clearlake and LLR. How much of those fundraising is already in your H1 numbers? Just want to make sure I understand with the kind of three-month delay that you report.