GSAM’s Petershill program backs $4B real assets investment manager

The Wall Street firm's investment will help accelerate strategic development.

A real assets investment manager headquartered in Austin, Texas, has secured the backing of one of Wall Street’s titans.

Pennybacker Capital Management, LLC, is receiving a strategic investment from the Petershill program at Goldman Sachs Asset Management which has been providing investment for leading alternative asset managers since it was founded in 2007.

Terms of the transaction were not disclosed by GSAM will be a minority, passive partner in Pennybacker, which has around $4 billion in assets under management and pursues real estate and infrastructure strategies through both closed-end and open-ended vehicles across the capital structure.

“This transaction marks the next phase in Pennybacker’s growth,” said Timothy Berry, founder, chief executive officer and co-chief investment officer of Pennybacker. “With additional capital and a value-add partner, we look forward to extending our strong track record, while continuing to develop the culture and team that have contributed to our success.”

Petershill makes minority investments in firms to provide capital to improve employee retention, facilitate business development, buy out legacy equity holders, and generate strategic options. The firms it back retain their autonomy.

“Our aim is to partner with best-in-class firms and Pennybacker has developed the investment and organizational capability to be properly recognized as such,” said Robert Hamilton Kelly, co-head of the program. “We’re looking forward to this partnership and helping Pennybacker realize continued success.”

Berkshire Global Advisors LP served as financial advisor and Kirkland & Ellis LLP served as legal advisor to Pennybacker. Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel to Petershill.