Goldman’s Petershill Invests in Harvest

Goldman Sachs has made a minority investment in Harvest Partners, a middle-market private equity firm.

The investment by Goldman was made through Goldman Sachs Asset Management’s Petershill Private Equity fund which closed in February 2018 at an above-target $2.5 billion. The fund makes minority interests in private equity firms.

The passive investment, which represents 15 percent of the firm, will allow Harvest Partners to expand the ownership of the firm. As part of the transaction, Harvest Partners’ senior leadership has made long-term commitments to the business.

“We are very pleased to be partnering with Goldman Sachs, a respected global institution that brings a broad range of capabilities and experience in supporting investment management firms,” said Thomas Arenz, a Partner of Harvest Partners. “The investment by Petershill enables us to build on our 37-year history and execute our long-term strategy to broaden our middle market franchise.”

Harvest Partners invests in companies that have from $100 million to $1 billion in revenue and $20 million to $100 million in EBITDA. Sectors of interest include business services, consumer services, healthcare services, industrial services, manufacturing and distribution. The firm was founded in 1981 and is headquartered in New York (www.harvestpartners.com).

“Harvest Partners has been able to build a world-class private equity business, delivering strong returns to investors for almost four decades,” said Christian von Schimmelmann, co-head of Goldman Sachs Asset Management’s Petershill program. “We are excited to expand our relationship with Harvest Partners through this investment and look forward to providing the firm with strategic capital and support.”

Goldman Sachs Asset Management (GSAM) is a leading asset manager with over 2,000 professionals across 30 offices worldwide. Within GSAM, the Alternative Investments & Manager Selection (AIMS) Group, which manages over $200 billion in assets, invests in private equity funds, hedge fund managers, real estate managers, public equity strategies and fixed income strategies. Through the Petershill program, which invests in private equity management companies, GSAM owns equity stakes in private equity firms. To date, Petershill’s investments include stakes, among others, in Clearlake Capital Group, Francisco Partners, Accel-KKR, ArcLight Capital Partners, Littlejohn & Co. and Riverstone Holdings.

Evercore was the financial advisor to Harvest Partners on this investment and Kirkland & Ellis provided legal services.

© 2018 Private Equity Professional | October 22, 2018

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