Petershill Partners Sells Major Stake in General Catalyst
- Editor
- Jan 16
- 2 min read
What's Happening Petershill Partners announced the sale of its majority stake in General Catalyst for $726 million, representing a 62% premium over the carrying value as of June 2024. The deal comes as General Catalyst shifts from a venture capital firm to a global investment and transformation company.
Why It Matters
Strategy Shift: General Catalyst's evolution from pure venture capital to broader investment focus makes it less aligned with Petershill's core alternative asset management strategy
Portfolio Impact: The sale represents 21% of Petershill's market capitalization and will reduce 2025 distributable earnings by approximately 9%
Value Creation: The transaction demonstrates Petershill's ability to exit investments at premium valuations, with the exit discount rate of 11% comparing favorably to the 17% holding discount rate
The Key Moves
Deal Structure: Payment comes through interest-bearing loan notes, with $207 million due by March 2025 and remaining $519 million paid over 6-8 years
Reinvestment: Petershill plans to retain majority of proceeds for new investments while declaring a special dividend of 14 cents per share
Retained Interest: Company keeps rights to performance-related earnings and balance sheet assets worth $137 million from existing funds
By The Numbers
Premium: $726 million sale price represents 62% premium over $447 million carrying value
Interest Rate: Initial 10% annual rate on loan notes, increasing 1% annually for four years
Portfolio Size: Post-sale exposure to $308 billion in assets under management, down from $328 billion
Key Players
Petershill Partners: Public investment group focused on private equity and alternative investments, operated by Goldman Sachs Asset Management
General Catalyst: Venture capital firm founded in 2000, transitioning to broader investment and transformation company
Ali Raissi-Dehkordy and Robert Hamilton Kelly: Co-Heads of Petershill Business within Goldman Sachs Asset & Wealth Management
Key Quotes
Leadership View: "This transaction further demonstrates our ability to realise assets at attractive valuations... and allows us to exit the investment while facilitating General Catalyst's vision of building a global investment and transformation company over time" - Ali Raissi-Dehkordy and Robert Hamilton Kelly
The Wrap The sale marks a strategic realignment for both firms, with Petershill capitalizing on premium valuation while maintaining portfolio diversification. The transaction showcases the dynamic nature of investment partnerships and the importance of strategic fit in long-term relationships.
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