London, UK – Petershill Partners PHLL (-13.34%), a private equity-focused fund manager that originated from Goldman Sachs Asset Management (GS) and is currently three-quarters owned by the company, experienced a significant drop in its stock price, falling as much as 16% on Friday following a cut in its outlook.
Petershill Partners announced that its full-year partner fee-related earnings are now expected to range between $190 million and $210 million, which is below the previously projected range of $220 million to $250 million. The fund manager attributes this revision to the slower deployment environment, which has affected the timing of fee activations.
The firm’s first-half earnings on this metric declined to $99 million from $110 million, representing a 6% difference compared to UBS’s expectations.
During its conference call, Petershill executives brought attention to the potential consolidation of smaller firms due to new disclosure requirements imposed by the Securities and Exchange Commission.
As of midday, most of Europe’s major stock exchanges were experiencing a downward trend, with the UK’s FTSE 100 (UKX), France’s CAC 40 (PX1), and Germany’s DAX (DX:DAX) each showing a decline ranging between 0.1% and 0.4%.
Although the Stoxx Europe 600 (XX:SXXP) has recorded a gain of 7% for the year, it has underperformed compared to the impressive 16% increase seen in the US S&P 500 (SPX).