Q1 2022 Petershill Partners PLC Trading Statement Call Transcript

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

Question: Hubert Lam - Bank of America - Analyst : Hi, guys. Good morning. I just got three questions. Firstly, on the fund raising that you raised $20 billion in the first quarter, which is a very impressive amount. It's about 60% or 70% already of your year-end targets. For the fundraising in the quarter, can you talk about how many firms contributed to that amount? What strategies drove the fundraising and also -- and maybe too early, but is the $40 billion to $45 billion just too conservative now just given how much you've raised already in the first quarter? That's the first question. Second question is on costs. You mentioned that there were higher costs this quarter due to increased hiring. Would you say that this is just a one-off for this quarter or would you expect continued hiring throughout the rest of the year? Are you still expecting to hit your FRE margin of 65% to 70% for the full year, just given that you're under that this quarter? And lastly, on M&A outlook, I know you mentioned that there weren't any this quarter, but you still seems like you're very optimistic on the prospects going forward. Can you just talk a bit about how the M&A environment has changed whether or not valuations have come down just given the market sell-off, whether or not firms are willing to do more deals now? And also if you could discuss the bid-ask spread that you're seeing in terms of valuations. Thank you.

Question: Hubert Lam - Bank of America - Analyst : Great. Thank you very much.

Question: Gurjit Kambo - JPMorgan - Analyst : Hi. Good afternoon. Thank you for the call. Just a few questions. Firstly, in terms of the net management fee rate decline during the quarter, I think you indicated this was to do the fact that as you onboard assets that obviously affects the denominator, and then the earnings that come through maybe with a slight lag effect. Is that the main driver of that? And that net management fee rate, does that also incorporate the transaction advisory fees? That's the first question. Maybe if you want to answer that now and I'll comment on the next ones.

Question: Gurjit Kambo - JPMorgan - Analyst : Okay. Great. Thank you. And then just thinking about the transaction advisory fees, what are the drivers -- are the drivers of these fees similar to what they would be for investment banking i.e., activity, run deals, et cetera. So given the environment at the moment, pretty subdued around that side of things, is that the same factors, or are there other drivers of transaction advisory fees for these partner firms? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2022 / 11:00AM, PHLL.L - Q1 2022 Petershill Partners PLC Trading Statement Call

Question: Gurjit Kambo - JPMorgan - Analyst : Okay. Great. Thank you. And then and then I guess I know this the AUM numbers you've given are basically you'll see a three-month lag. So I guess you can't say too much around the quarter ending March, but just in terms of -- just technically, in terms of markets being more subdued in Q1 calendar that wouldn't really affect your fee-paying AUM because I suspect most of your fee paying is either on commitments on or invested capital. Is that correct?

Question: Gurjit Kambo - JPMorgan - Analyst : Okay. Great. Thank you. That's all my questions. Thank you very much.

Question: Mike Werner - UBS - Analyst : Thank you very much for the call and the presentation. Just a couple of questions, but first, maybe just a follow-up to Gurjit's. With regards to the partner blended net management fee rate, does that include transaction and advisory fees, or is that just purely management fees?

Question: Mike Werner - UBS - Analyst : Okay. Thank you. And then you guys are still guiding for circa or around 1.5% in terms of the full-year 2022 partner blended net management fee rate, which is obviously a step up from Q1 levels. Does that guidance imply an expectation that those transaction and advisory fee revenues will improve as we go through this year, or is this purely a function of timing, of capital raising and when the management fees start getting charged?

Question: Mike Werner - UBS - Analyst : Okay. Thank you. And then again, I'm a bit confused here, so I apologize. With regards to the fee paying partner AUMs that we see for Q1 in 2022, $184 billion, that is again, kind of the calendar yearend last year AUMs. And that's ultimately what drives the calculation of the management fee rate. So, the $28 billion in terms of gross inflows that you saw in Q1 of this year doesn't actually impact the net management fee rate, does it, or it does?

Question: Mike Werner - UBS - Analyst : Okay. So the average AUM is actually the real Q1 2022 with no three-month lag? Is that correct?

Question: Mike Werner - UBS - Analyst : Okay. So the numbers are on a three-month lag, but those with the AUM numbers that are used again for the fee rate calculation don't yet include the $28 million -- or billion -- excuse me, that was raised in Q1 because we'll see that in the next quarter because of the lag? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 25, 2022 / 11:00AM, PHLL.L - Q1 2022 Petershill Partners PLC Trading Statement Call

Question: Mike Werner - UBS - Analyst : Okay. So, but the end of period is not lag three months. That end up period is March, right? Actual March, not lagged.

Question: Mike Werner - UBS - Analyst : Okay. Thank you.