Goldman Sachs Needs This IPO To Go Extremely Well

Goldman Sachs Needs This IPO To Go Extremely Well

Goldman Sachs Group Inc. doubtless wants every initial public offering it’s involved in to go well. But the U.S. investment bank has a lot riding on one in particular: the potential London listing of Petershill Partners. This vehicle for owning stakes in private-equity firms could be a hot property. Even so, Goldman would be ill-advised to push IPO investors to the limit of what they’re willing to pay.

Petershill will comprise holdings in alternative asset managers previously housed inside funds run by the bank’s subsidiary, Goldman Sachs Asset Management. A listing will turn this assortment into publicly traded shares that can be monetized more easily. The individual portfolio firms may be too small to go public themselves, or may not want to. Moreover, an IPO is a chance to raise capital to make more acquisitions.