Petershill Partners plc (LON:PHLL), the diversified, global alternatives investment group focused on private capital strategies, has published its 2023 AuM Update and AuM outlook for 2024.
Highlights
· Aggregate Partner-firm AuM of US$304bn, increasing slightly during the quarter and 7% year-over-year. Aggregate Fee-paying Partner-firm AuM of US$221bn, increasing 12% during the quarter and 14% year-over-year.
– Organic gross Fee-eligible AuM raised was US$3bn for the quarter and a total of US$23bn for 2023, in-line with our 2023 guidance of US$20 – $25bn.
– Partner-firms saw US$23bn of Fee-paying AuM gross inflows during the quarter supported by around US$20bn of previously raised Fee-paying AUM switching on during the quarter. Total Fee-paying AuM gross inflows of US$31bn in 2023.
– Partner-firm realisations of US$1bn of Fee-paying AuM during the quarter and a total of US$7bn in 2023, in-line with our 2023 guidance of US$5 – $10bn.
– Investment performance of Partner-firm funds led to an increase of US$2bn in Fee-paying Partner-firm AuM during the quarter and an increase of US$3bn for the full year.
· As at Q4 2023, Partner-firms had US$8bn of AuM which is not yet paying fees, down from US$28bn in Q3 2023.
AuM Development: 2023
The following table summarises the changes in Aggregate Partner-firm AuM and Aggregate Fee-paying Partner-firm AuM for the fourth quarter of 2023 and the year ended 31 December 2023, based on a one-period (3-month) lag:
| Quarter ended 31 December | Year ended 31 December | |||||
| (US$bn unless otherwise indicated) | AuM | Fee-payingAuM | AuM | Fee-payingAuM | ||
| Aggregate AuM at start of the period | ($bn) | 303 | 197 | 283 | 194 | |
| Inflows | ($bn) | 3 | 23 | 33 | 31 | |
| Realisations | ($bn) | (6) | (1) | (19) | (7) | |
| Investment performance | ($bn) | 4 | 2 | 7 | 3 | |
| M&A | ($bn) | – | – | – | – | |
| Aggregate AuM at period end | ($bn) | 304 | 221 | 304 | 221 | |
Outlook for 2024
· Based on current fund-raising schedules, we estimate organic gross fee-eligible AuM raise of US$20bn to US$25bn in 2024.
· Realisations in 2024 of US$5bn to US$10bn.
· The $8bn of AuM not yet paying fees as at Q4 2023 is expected to become Fee-paying AuM during the course of 2024.
· The outlook excludes the impact of any future M&A.
AuM Progression Since 31 December 2022*
| QTD | YTD*** | |||||||||
| (US$bn, unless otherwise indicated) | Dec-31-2023 | Sep-30-2023 | Jun-30-2023 | Mar-31-2023 | Dec-31-2022 | (Δ%) | (Δ%) | |||
| Aggregate Partner-firm AuM | ($bn) | 304 | 303 | 300 | 290 | 283 | 0% | 7% | ||
| Aggregate Fee-paying Partner-firm AuM | ($bn) | 221 | 197 | 196 | 195 | 194 | 12% | 14% | ||
| Average Aggregate Fee-paying Partner-firm AuM ** | ($bn) | 201 | 193 | 190 | 188 | 178 | 4% | 13% | ||
| Aggregate Performance Fee Eligible Partner-firm AuM | ($bn) | 275 | 276 | 274 | 266 | 259 | 0% | 6% | ||
| Average Aggregate Performance Fee Eligible Partner-firm AuM ** | ($bn) | 270 | 265 | 258 | 251 | 236 | 2% | 14% |
* All AuM figures are based on a one-period (3-month) lag due to the timing of the financial information received by the Operator from the Partner-firms
** Average Aggregate AuM figures represent the twelve month mean and use the start and each quarter end of the reporting period adjusted for acquisitions and dispositions where applicable.
*** Percentage change relative to Dec-31-2022
AuM Reconciliation: Aggregate Fee-paying AuM Vs Aggregate Partner-firm AuM
The below table reconciles Aggregate Fee-paying Partner-firm AuM to Aggregate Partner-firm AuM as at 31 December 2023, based on a one-period (3-month) lag:
| Q4 | |||
| (US$bn unless otherwise indicated) | 2023 | ||
| Aggregate Fee-paying Partner-firm AuM | ($bn) | 221 | |
| AuM not yet paying fees | ($bn) | 8 | |
| Fee Exempt AuM | ($bn) | 21 | |
| Investment performance | ($bn) | 54 | |
| Aggregate Partner-firm AuM | ($bn) | 304 | |
The following table reflects the Aggregate Partner-firm AuM and Aggregate Fee-paying Partner-firm AuM by Asset Class as at 31 December 2023, based on a one-period (3-month) lag:
| Asset Class (US$bn unless otherwise indicated) | AuM | Percentage | Fee-payingAuM | Percentage | ||
| Private equity | ($bn) | 194 | 64% | 125 | 57% | |
| Private credit | ($bn) | 39 | 13% | 35 | 16% | |
| Private real assets | ($bn) | 44 | 14% | 34 | 15% | |
| Absolute return | ($bn) | 27 | 9% | 27 | 12% | |
| Total Current Period | ($bn) | 304 | 100% | 221 | 100% | |
Please note Petershill Partners financial calendar for Q1 2024:
| Full year 2023 Preliminary Results Announcement | 26 March 2024 |
