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19.03.2024 07:00:52 - dpa-AFX: EQS-Adhoc: Partners Group's USD AuM growth of 8% translated into stable profit of CHF 1 billion, impacted by foreign exchange effects; performance fees up 37% (english)
Partners Group's USD AuM growth of 8% translated into stable profit of CHF 1
billion, impacted by foreign exchange effects; performance fees up 37%
Partners Group / Key word(s): Annual Results
Partners Group's USD AuM growth of 8% translated into stable profit of CHF 1
billion, impacted by foreign exchange effects; performance fees up 37%
19-March-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Baar-Zug, Switzerland; 19 March 2024 | Ad hoc announcement pursuant to Art.
53 Listing Rules (LR)
* Revenues increased by 4% to CHF 1'945 million
* Dividend proposed to increase by 5% to CHF 39.00 per share
Summary of key financials 2023 (in CHF million)
David Layton, Partner and Chief Executive Officer, says: "We are pleased
that our portfolio of businesses and assets continues to perform robustly,
and our financial results are solid. 2023 was a difficult year for our
industry, with distributions at the lowest levels seen since the Great
Financial Crisis. We are proud to have some of the most diversified
performance fees across our industry, nevertheless we felt the impact of a
more cautious exit environment. Looking into 2024, our growing pipeline of
high-quality assets and normalizing market conditions give us confidence for
improving exit activity. On the client side, our ability to tailor bespoke
solutions for both institutional and individual investors will remain a key
growth driver."
2023 financials
Total revenues increased by 4% to CHF 1'945 million (2022: CHF 1'872
million) at a revenue margin(5) of 1.56% (2022: 1.51%). Foreign exchange
effects, in particular the continued strengthening of the CHF against the
USD and the EUR, negatively impacted revenue growth by 5%.
Joris Gröflin, Partner and Chief Financial Officer, adds: "Our
transformational investing strategy resulted in another year of strong
double-digit EBITDA growth across our direct private equity and
infrastructure portfolios, building the foundation for future performance
fees. We remain confident in our ability to generate performance fees
accounting for 20-30% of revenues in the next 1-2 years in a normalizing
market environment and see further upside in the range of 25-40% for the
years thereafter."
Total operating costs increased by 2% to CHF 752 million (2022: CHF 740
million), mainly driven by higher variable performance fee-related personnel
expenses.
EBIT increased by 5% to CHF 1'193 million (2022: CHF 1'132 million) at an
EBIT margin of 61.3% (2022: 60.5%).
Net finance income and expenses amounted to CHF 16 million (2022: CHF -2
million). The firm's transformational investing approach translated into
positive underlying asset and portfolio performance, resulting in a
contribution of CHF 67 million (2022: CHF 14 million) from Partners Group's
investments alongside its clients. At the same time, negative foreign
exchange effects, hedging, and other costs resulted in a negative
contribution of CHF -51 million (2022: CHF -16 million). Income taxes
totaled CHF 205 million (2022: CHF 124 million) at a tax rate of 17% (2022:
11%).
In summary, the firm's profit was stable at CHF 1'003 million (2022: CHF
1'005 million). Partners Group's Board of Directors proposes a dividend of
CHF 39.00 per share (2022: CHF 37.00 per share) based on the solid
development of the business and its confidence in the sustainability of the
firm's growth. The proposal represents an increase of 5% year-on-year.
Outlook
Steffen Meister, Partner and Executive Chairman of the Board, concludes:
"Our hypothesis that the roles of public and private markets are switching
has been confirmed in 2023, as our industry is increasingly becoming the
main funding engine of the rapidly changing real economy. Looking forward,
we expect technology to accelerate the pace of change in the economy,
ushering in an unprecedented age of transformation and disproportional
productivity, facilitated in a large part by private markets managers.
During this next economic transformation we believe our industry will
consolidate and business builders, who like Partners Group take a
transformational approach to investing, will access a massive growth
opportunity in the next 10 years."
For the full-year 2024, Partners Group confirms its guidance on expected
gross client demand of USD 20 to 25 billion, based on an expected
normalization of the investment environment and continued strong interest in
its bespoke solutions and flagship offerings. The firm further guides for
USD -8 to -9 billion in tail-down effects stemming from the more mature
closed-ended investment programs. From now on, Partners Group no longer
includes redemptions from evergreen programs in its guidance as they are
often netted out by performance effects in a normalized environment.(7) In
its AuM announcement on 11 January 2024, Partners Group provided guidance
for redemptions implicitly amounting to USD -3 to -4 billion for the
full-year 2024.
Building on the success of its existing platform, Partners Group will expand
its investment universe to include private markets royalties as a fifth
asset class in 2024. The firm will take a multi-sector approach to private
markets royalties, which will cover intellectual property assets across the
pharmaceuticals and select consumer industries, as well as opportunities
within the energy transition space.
With regard to financials, Partners Group expects performance fees to
account for 20-30% of total revenues in the next 1-2 years in a normalizing
market environment and increases the range to 25-40% for the years
thereafter. The firm bases this additional upside on the increasing
proportion of the firm's maturing portfolio that consists of direct
investments, which entail a higher performance fee. Partners Group will
continue to target a -60% EBIT margin on newly generated management fees as
well as on all performance fees as it builds out its resources in
preparation for future growth.
Conference call today & publication of 2023 Annual Report
Partners Group's senior management will hold a conference call today at
9:00am CET at the Widder Hotel in Zürich, Switzerland. To register for the
call, please click here or use the contact details at the end of this press
release.
The Annual Report as of 31 December 2023 is available for download at
https://www.partnersgroup.com/en/shareholders/reports-and-presentations.
Key dates 2024
(1) Late management fees typically arise when clients join a commingled
closed-ended investment program at a later stage of the fundraising period
and are required to pay retrospectively for previously delivered management
services to this respective program. Any such payments in relation to prior
accounting years are called late management fees.
(2) Revenues include management fees and performance fees.
(3) Management fees and other revenues, net, and other operating income.
(4) Stands for: depreciation and amortization.
(5) Revenue margin is an Alternative Performance Metrics (APM). A
description of the APM can be found in Partners Group's 2023 Annual Report
on pages 32 and 33, available for download at
www.partnersgroup.com/en/shareholders/reports-and-presentations.
(6) Assets under Management is an Alternative Performance Metrics (APM). A
description of the APM can be found in Partners Group's 2023 Annual Report
on pages 32 and 33, available for download at
www.partnersgroup.com/en/shareholders/reports-and-presentations.
(7) Net AuM impact of performance effects and redemptions over the last five
years in USD billion: +0.5 in 2019, +0.2 in 2020, +3.8 in 2021, -2.3 in 2022
and -1.4 in 2023 (average over five years: +0.2).
About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the
firm has invested USD 210 billion in private equity, private real estate,
private debt and private infrastructure on behalf of its clients globally.
Partners Group seeks to generate superior returns through capitalizing on
thematic growth trends and transforming attractive businesses and assets
into market leaders. The firm is a committed, responsible investor and aims
to create sustainable returns with lasting, positive impact for all its
stakeholders. With USD 147 billion in assets under management as of 31
December 2023, Partners Group provides an innovative range of bespoke client
solutions to institutional investors, sovereign wealth funds, family offices
and private individuals globally. The firm employs more than 1'900 diverse
professionals across 20 offices worldwide and has regional headquarters in
Baar-Zug, Switzerland; Denver, USA; and Singapore. Partners Group Holding AG
has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For
more information, please visit www.partnersgroup.com or follow us on
LinkedIn.
Shareholder relations contact
Philip Sauer
Phone: +41 41 784 66 60
Email: philip.sauer@partnersgroup.com
Media relations contact
Jenny Blinch
Phone: +44 207 575 2571
Email: jenny.blinch@partnersgroup.com
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End of Inside Information
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End of Announcement EQS News Service
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1861507 19-March-2024 CET/CEST
billion, impacted by foreign exchange effects; performance fees up 37%
Partners Group / Key word(s): Annual Results
Partners Group's USD AuM growth of 8% translated into stable profit of CHF 1
billion, impacted by foreign exchange effects; performance fees up 37%
19-March-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Baar-Zug, Switzerland; 19 March 2024 | Ad hoc announcement pursuant to Art.
53 Listing Rules (LR)
* Revenues increased by 4% to CHF 1'945 million
* Management fees amounted to CHF 1'575 million, down 2%, mainly due to
foreign exchange effects and lower late management fees(1)
* Performance fees increased by 37% to CHF 369 million (19% of total
revenues); guidance of 20-30% of total revenues confirmed for next 1-2
years; increases to 25-40% for years thereafter
* EBIT margin increased to 61.3%; EBIT stands at CHF 1'193 million while
profit stable at CHF 1'003 million
* Dividend proposed to increase by 5% to CHF 39.00 per share
* Reconfirmed guidance of expected gross client demand of USD 20-25
billion in 2024
Summary of key financials 2023 (in CHF million)
2023 2022
Revenues(2) 1'945 1'872 +4%
Management fees(3) 1'575 1'603 -2%
Performance fees 369 269 +37%
Personnel expenses -603 -596 +1%
Other operating expenses/D&A(4) -149 -144 +3%
EBIT 1'193 1'132 +5%
EBIT margin 61.3% 60.5%
Net finance income and expenses 16 -2
Income taxes -205 -124
Profit 1'003 1'005 -0%
David Layton, Partner and Chief Executive Officer, says: "We are pleased
that our portfolio of businesses and assets continues to perform robustly,
and our financial results are solid. 2023 was a difficult year for our
industry, with distributions at the lowest levels seen since the Great
Financial Crisis. We are proud to have some of the most diversified
performance fees across our industry, nevertheless we felt the impact of a
more cautious exit environment. Looking into 2024, our growing pipeline of
high-quality assets and normalizing market conditions give us confidence for
improving exit activity. On the client side, our ability to tailor bespoke
solutions for both institutional and individual investors will remain a key
growth driver."
2023 financials
Total revenues increased by 4% to CHF 1'945 million (2022: CHF 1'872
million) at a revenue margin(5) of 1.56% (2022: 1.51%). Foreign exchange
effects, in particular the continued strengthening of the CHF against the
USD and the EUR, negatively impacted revenue growth by 5%.
* Management fees decreased by 2% to CHF 1'575 million (2022: CHF 1'603
million) and developed in line with average assets under management(6)
(AuM) in CHF. Late management fees were slightly lower as the firm did
not hold material closings of closed-ended programs during the period.
* Performance fees increased by 37% to CHF 369 million (2022: CHF 269
million), representing 19% of total revenues (2022: 14%). H1 performance
fees accounted for 72% of total performance fees and were mainly driven
by the firm's infrastructure program performance. H2 performance fees,
which accounted for 28%, were impacted by the slower-than-anticipated
recovery of the transaction environment leading the firm to postpone
several asset divestitures across private equity and infrastructure
originally planned for H2.
Joris Gröflin, Partner and Chief Financial Officer, adds: "Our
transformational investing strategy resulted in another year of strong
double-digit EBITDA growth across our direct private equity and
infrastructure portfolios, building the foundation for future performance
fees. We remain confident in our ability to generate performance fees
accounting for 20-30% of revenues in the next 1-2 years in a normalizing
market environment and see further upside in the range of 25-40% for the
years thereafter."
Total operating costs increased by 2% to CHF 752 million (2022: CHF 740
million), mainly driven by higher variable performance fee-related personnel
expenses.
* Total personnel expenses (80% of total operating costs) increased by 1%
to CHF 603 million (2022: CHF 596 million). Non-performance fee-related
personnel expenses decreased 5% year-on-year to CHF 470 million (2022:
CHF 496 million), below average FTE growth of 12%. They were positively
impacted by foreign exchange changes and included lower bonus accruals
relative to 2022. Performance fee-related personnel expenses increased
by 33% to CHF 133 million (2022: CHF 100 million), in-line with
performance fees.
* Other operating expenses increased by 3% to CHF 108 million (2022: CHF
104 million), in line with revenues. Depreciation & amortization
remained largely stable at CHF 41 million (2022: CHF 40 million).
EBIT increased by 5% to CHF 1'193 million (2022: CHF 1'132 million) at an
EBIT margin of 61.3% (2022: 60.5%).
Net finance income and expenses amounted to CHF 16 million (2022: CHF -2
million). The firm's transformational investing approach translated into
positive underlying asset and portfolio performance, resulting in a
contribution of CHF 67 million (2022: CHF 14 million) from Partners Group's
investments alongside its clients. At the same time, negative foreign
exchange effects, hedging, and other costs resulted in a negative
contribution of CHF -51 million (2022: CHF -16 million). Income taxes
totaled CHF 205 million (2022: CHF 124 million) at a tax rate of 17% (2022:
11%).
In summary, the firm's profit was stable at CHF 1'003 million (2022: CHF
1'005 million). Partners Group's Board of Directors proposes a dividend of
CHF 39.00 per share (2022: CHF 37.00 per share) based on the solid
development of the business and its confidence in the sustainability of the
firm's growth. The proposal represents an increase of 5% year-on-year.
Outlook
Steffen Meister, Partner and Executive Chairman of the Board, concludes:
"Our hypothesis that the roles of public and private markets are switching
has been confirmed in 2023, as our industry is increasingly becoming the
main funding engine of the rapidly changing real economy. Looking forward,
we expect technology to accelerate the pace of change in the economy,
ushering in an unprecedented age of transformation and disproportional
productivity, facilitated in a large part by private markets managers.
During this next economic transformation we believe our industry will
consolidate and business builders, who like Partners Group take a
transformational approach to investing, will access a massive growth
opportunity in the next 10 years."
For the full-year 2024, Partners Group confirms its guidance on expected
gross client demand of USD 20 to 25 billion, based on an expected
normalization of the investment environment and continued strong interest in
its bespoke solutions and flagship offerings. The firm further guides for
USD -8 to -9 billion in tail-down effects stemming from the more mature
closed-ended investment programs. From now on, Partners Group no longer
includes redemptions from evergreen programs in its guidance as they are
often netted out by performance effects in a normalized environment.(7) In
its AuM announcement on 11 January 2024, Partners Group provided guidance
for redemptions implicitly amounting to USD -3 to -4 billion for the
full-year 2024.
Building on the success of its existing platform, Partners Group will expand
its investment universe to include private markets royalties as a fifth
asset class in 2024. The firm will take a multi-sector approach to private
markets royalties, which will cover intellectual property assets across the
pharmaceuticals and select consumer industries, as well as opportunities
within the energy transition space.
With regard to financials, Partners Group expects performance fees to
account for 20-30% of total revenues in the next 1-2 years in a normalizing
market environment and increases the range to 25-40% for the years
thereafter. The firm bases this additional upside on the increasing
proportion of the firm's maturing portfolio that consists of direct
investments, which entail a higher performance fee. Partners Group will
continue to target a -60% EBIT margin on newly generated management fees as
well as on all performance fees as it builds out its resources in
preparation for future growth.
Conference call today & publication of 2023 Annual Report
Partners Group's senior management will hold a conference call today at
9:00am CET at the Widder Hotel in Zürich, Switzerland. To register for the
call, please click here or use the contact details at the end of this press
release.
The Annual Report as of 31 December 2023 is available for download at
https://www.partnersgroup.com/en/shareholders/reports-and-presentations.
Key dates 2024
22 May 2024 Annual General Meeting of shareholders 11 July Announcement of AuM as of 30 June 2024 2024 3 September Announcement of Interim Financial Results and Interim 2024 Report as of 30 June 2024
(1) Late management fees typically arise when clients join a commingled
closed-ended investment program at a later stage of the fundraising period
and are required to pay retrospectively for previously delivered management
services to this respective program. Any such payments in relation to prior
accounting years are called late management fees.
(2) Revenues include management fees and performance fees.
(3) Management fees and other revenues, net, and other operating income.
(4) Stands for: depreciation and amortization.
(5) Revenue margin is an Alternative Performance Metrics (APM). A
description of the APM can be found in Partners Group's 2023 Annual Report
on pages 32 and 33, available for download at
www.partnersgroup.com/en/shareholders/reports-and-presentations.
(6) Assets under Management is an Alternative Performance Metrics (APM). A
description of the APM can be found in Partners Group's 2023 Annual Report
on pages 32 and 33, available for download at
www.partnersgroup.com/en/shareholders/reports-and-presentations.
(7) Net AuM impact of performance effects and redemptions over the last five
years in USD billion: +0.5 in 2019, +0.2 in 2020, +3.8 in 2021, -2.3 in 2022
and -1.4 in 2023 (average over five years: +0.2).
About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the
firm has invested USD 210 billion in private equity, private real estate,
private debt and private infrastructure on behalf of its clients globally.
Partners Group seeks to generate superior returns through capitalizing on
thematic growth trends and transforming attractive businesses and assets
into market leaders. The firm is a committed, responsible investor and aims
to create sustainable returns with lasting, positive impact for all its
stakeholders. With USD 147 billion in assets under management as of 31
December 2023, Partners Group provides an innovative range of bespoke client
solutions to institutional investors, sovereign wealth funds, family offices
and private individuals globally. The firm employs more than 1'900 diverse
professionals across 20 offices worldwide and has regional headquarters in
Baar-Zug, Switzerland; Denver, USA; and Singapore. Partners Group Holding AG
has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For
more information, please visit www.partnersgroup.com or follow us on
LinkedIn.
Shareholder relations contact
Philip Sauer
Phone: +41 41 784 66 60
Email: philip.sauer@partnersgroup.com
Media relations contact
Jenny Blinch
Phone: +44 207 575 2571
Email: jenny.blinch@partnersgroup.com
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End of Inside Information
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Language: English
Company: Partners Group
Zugerstrasse 57
6341 Baar
Switzerland
Phone: +41 41 784 60 00
Fax: + 41 41 784 60 01
E-mail: partnersgroup@partnersgroup.com
Internet: https://www.partnersgroup.com/en/
ISIN: CH0024608827
Valor: 2460882
Listed: SIX Swiss Exchange
EQS News ID: 1861507
End of Announcement EQS News Service
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1861507 19-March-2024 CET/CEST
