Goldman’s Petershill Unit Takes Minority Stake in Harvest Partners

Goldman Sachs’ asset management business has taken a 15 percent stake in middle-market-focused private equity firm Harvest Partners, the firms announced Friday.

The investment was made through GSAM’s Petershill program, which makes investments in mid-sized asset management firms. In February, GSAM announced that it had raised $2.5 billion for a family of Petershill funds targeting private equity firms.

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The capital provided by GSAM will allow Harvest Partners to “expand the ownership of the firm and further develop its platform,” according to a joint statement announcing the deal.

Thomas Arenz, a partner at Harvest Partners, said the firm was “very pleased” to partner with GSAM, noting Goldman’s “broad range of capabilities and experience in supporting investment management firms.”

Other private equity firms in the Petershill portfolio include ArcLight Capital Partners, Riverstone Holdings, and Accell-KKR. Michael Brandmeyer, co-CIO of GSAM’s alternative investments and manager selection group, said in February that the Petershill funds would “provide growth capital and advice to help firms institutionalize, diversify, and further extend their leadership positions in their focus markets.”

Since its founding in 1981, Harvest Partners has raised more than $5 billion across seven private equity funds. The firm is currently seeking to invest out of its seventh fund, which has more than $2.2 billion in committed capital.

Harvest Partners also has a structured capital unit, which was founded in 2014.

“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 the Petershill program, in the statement announcing the deal. “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.”