Petershill Partners (PHLL) H2 2024 earnings summary

Executive summary

• Portfolio partner firms raised over $118 billion in fee-eligible assets since IPO, with 2024 asset raising of $32 billion exceeding guidance despite a challenging industry environment.

• Achieved strong strategic and financial progress in 2024, including four acquisitions totaling $205 million and three disposals at a 19% premium, with further major transactions post-year-end.

• $1.2 billion in capital returned and announced to shareholders since IPO, with $563 million returned in 2024 via dividends, tender offers, and buybacks.

• Double-digit growth in distributable and fee-related earnings, with robust investment performance and returns relative to benchmarks.

Financial highlights

• Distributable earnings up 11% year-on-year to $332 million; adjusted EPS up 12% to $0.197.

• Fee-paying AUM grew 8% to $337 billion; partner-firm fee-paying AUM reached $238 billion.

• Gross management fees rose 11% to $395 million; net management fees up 10% to $386 million.

• Partner FRE increased 11% to $225 million, with a stable 58% margin.

• Book value per share at year-end was $4.71, up 9% year-on-year; investments at fair value $5.8 billion, up 11% year-on-year.

Outlook and guidance

• 2025 guidance: organic gross fee-eligible AUM raise of $20–$25 billion; FRE expected between $180–$210 million.

• PRE as a percentage of partner firm revenues guided at 15–30% for 2025, reflecting market uncertainty.

• Adjusted EBIT/EBITDA margin expected to remain 85–90%; acquisitions in 2025 expected to exceed the medium-term range.