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11.07.2024 17:45:55 - dpa-AFX: EQS-Adhoc: Partners Group reports solid AuM development in H1 and reconfirms full-year fundraising guidance (english)
Partners Group reports solid AuM development in H1 and reconfirms full-year
fundraising guidance
Partners Group / Key word(s): Annual Results
Partners Group reports solid AuM development in H1 and reconfirms full-year
fundraising guidance
11-Jul-2024 / 17:45 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; 11 July 2024 | Ad hoc announcement pursuant to Art.
53 Listing Rules (LR)
* USD 9 billion realized; divestment pipeline is robust
Partners Group received USD 11.1 billion in new commitments from its global
client base in H1 2024, bringing the firm's total assets under management
(AuM(1)) to USD 149.2 billion as of 30 June 2024 (30 June 2023: USD 141.7
billion). The firm committed USD 9.2 billion (H1 2023: USD 5.9 billion)
globally to investments across private markets asset classes and generated
USD 9.2 billion (H1 2023: USD 5.4 billion) in realizations. Partners Group
reconfirms its full-year 2024 guidance for total fundraising of USD 20 to 25
billion.
H1 was characterized by gradually improving market fundamentals while
realizations in the industry remained muted and distributions to investors
are at historically low levels. Consequently, although the pace of client
conversion rates for traditional closed-ended funds did increase relative to
the previous period, it remained slower than anticipated. Demand for bespoke
private markets solutions was again the largest contributor to inflows, with
interest from private wealth clients accelerating.
David Layton, Partner and Chief Executive Officer, comments: "We are pleased
to report solid business development in what we believe is a transition
period for the industry. Our near-term transaction pipeline of thematically
sourced investments is full across all asset classes, including for our
newly launched private markets royalties business. To generate sustainable
returns for our clients in this market, our transformational investing
approach is key. It allows us to consistently identify businesses and assets
that benefit from future growth themes and transform them into industry
leaders."
USD 11 billion in new client demand in H1, led by bespoke client solutions
Overall client demand resulted in total new commitments of USD 11.1 billion
(H1 2023: USD 8.0 billion). Bespoke client solutions continued to grow in
importance for the firm, contributing the largest share to fundraising at
USD 8.6 billion and accounting for 77% of assets raised (H1 2023: 68%). Such
tailored solutions are increasingly becoming a focus for the industry as
clients seek to customize their private markets exposure beyond the
constraints of the traditional closed-ended vehicles that have been the
hallmark of the industry in the past.
Gross client demand stood at USD 11.1 billion before tail-down effects from
mature private markets investment programs amounting to USD -4.5 billion and
redemptions from evergreen programs totaling USD -2.5 billion. Foreign
exchange effects affected AuM growth by USD -2.2 billion during the period.
A final USD 0.2 billion came from other factors such as a select number of
investment programs that link AuM to NAV development(2).
Breakdown of total AuM as of 30 June 2024 (in USD billion):
USD 9 billion invested in H1, transaction environment gradually improving
Partners Group invested USD 9.2 billion (H1 2023: USD 5.9 billion) on behalf
of its clients into companies and assets during the first half of the year,
up 55% from the same period last year and diversified across its platform.
Partners Group continued to invest with a focus on direct control and
thematically sourced investments, as the transaction environment showed
signs of improvement in H1. The firm applies deep thematic research to
identify high conviction sub-sectors supported by resilient long-term global
trends and builds conviction for investments based on value creation plans
developed in conjunction with the expertise of Partners Group's large
network of seasoned external industry experts.
In one example of note within private equity, Partners Group, acting on
behalf of its clients, agreed to purchase a majority stake in FairJourney
Biologics, a leading antibody discovery Contract Research Organization,
based in Portugal and the UK. FairJourney is set to benefit from several
structural tailwinds driving growth in the market for antibody discovery.
Partners Group will partner with founder António Parada to build on
FairJourney's unique positioning, expanding its technology and capabilities
through organic and inorganic investment to unlock faster, more effective
drug development for its partners.
Partners Group invested 57% of its total global volume into direct assets on
behalf of its clients. The remaining 43% of the total investment volume was
invested into portfolio assets. These included secondary investments into
globally diversified private markets portfolios, which are often tactically
overweighted during periods of economic recalibration as part of Partners
Group's relative value asset allocation management, as well as select
primary commitments to other complementary private markets strategies and
investments into the broadly syndicated loan market.
USD 9 billion realized in H1, concentration across credit and portfolio
assets
Portfolio realizations amounted to USD 9.2 billion (H1 2023: USD 5.4
billion). In an exit environment that remained subdued for headline equity
transactions, Partners Group's diversified platform continued to provide
realizations for the benefit of clients. During the period, distributions
stemmed primarily from credit and portfolio asset sales, which amounted to
68% of total realizations (H1 2023: 61%). Portfolio assets are an important
tool for providing diversification and liquidity in an overall private
markets portfolio as they provide a diverse stream of distributions across
cycles.
Outlook H2 2024
Partners Group sees the outlook for long-term, sustainable growth in the
private markets industry, supported by strong structural tailwinds and
increasing growth in client demand. In particular, the shift to tailored
mandates and growing demand from individual investors for private markets
solutions are expected to drive future growth for the industry. The firm has
been a pioneer in both categories and has built a leadership position over
the last 20 years of building bespoke solutions.
For the full year 2024, Partners Group continues to expect to raise between
USD 20 to 25 billion in total client demand. Full-year estimates for
tail-down effects from more mature closed-ended investment programs remain
unchanged at USD -8 to -9 billion. The firm reaffirms its full year guidance
based on the previously communicated assumption of a continued normalization
of the investment environment. While traditional fundraising remains slow as
client conversion periods have not yet normalized, bespoke client solutions
are expected to continue to drive fundraising in 2024.
Sarah Brewer, Partner and Global Co-Head Client Solutions, adds: "We are
pleased that clients continue to place their trust in us and believe there
are several factors supporting the sustainable growth of our platform in an
evolving market environment. Firstly, the increasing desire for customized
alternatives to traditional closed-ended funds. Secondly, the continued
consolidation of the industry as investors look for more comprehensive
private markets solutions from a smaller number of large managers that are
seeking to diversify their platforms. As a pioneer in providing bespoke
client solutions and one of the largest firms in the global private markets
industry, we are well positioned to take advantage of these trends."
Conference call today
Partners Group's senior management will hold a conference call today at
6:15pm CEST. To register for the call, please click here or use the contact
details at the end of this press release.
Key dates/publications
03 September 2024 Interim Financial Results and Report as of 30 June 2024,
7:00am CEST
14 January 2025 Announcement of AuM as of 31 December 2024, 5:45pm CET
(1) AuM is an Alternative Performance Metric (APM). A description of the
APMs can be found in Partners Group's 2023 Annual Report on pages 32-33,
available for download at
http://www.partnersgroup.com/en/shareholders/reports-presentations/. AUM
figures are for Partners Group Holding AG, inclusive of all Partners Group
affiliates.
(2) Partners Group reports fee-paying AuM. Most of the firm's evergreen
programs base fees on NAV. The portfolio performance during the period
impacts the NAV of these products and this translates to a corresponding
change in firm-level AuM. Calculations for semi-annual AuM numbers for
evergreen programs are based on 31 May NAV valuations and include net flows
as of 30 June. Full-year AuM numbers will be based on 30 November NAV
valuations and include net flows as of 31 December.
(3) CAGR: compound annual growth rate for net assets for the period 30 June
2019 - 30 June 2024.
About Partners Group
Partners Group is one of the largest firms in the global private markets
industry, with around 1'800 professionals and approximately USD 150 billion
in assets under management. The firm has investment programs and custom
mandates spanning private equity, private credit, infrastructure, real
estate, and royalties. With its heritage in Switzerland and its primary
presence in the Americas in Colorado, Partners Group is built differently
from the rest of the industry. The firm leverages its differentiated culture
and its operationally oriented approach to identify attractive investment
themes and to build businesses and assets into market leaders. 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
Alec Zimmermann
Phone: +41 41 784 69 68
Email: alec.zimmermann@partnersgroup.com
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End of Inside Information
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End of Announcement EQS News Service
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1944701 11-Jul-2024 CET/CEST
fundraising guidance
Partners Group / Key word(s): Annual Results
Partners Group reports solid AuM development in H1 and reconfirms full-year
fundraising guidance
11-Jul-2024 / 17:45 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; 11 July 2024 | Ad hoc announcement pursuant to Art.
53 Listing Rules (LR)
* USD 11 billion client commitments received; majority of inflows from
bespoke solutions
* Investment volume increased meaningfully; USD 9 billion invested across
private markets asset classes
* USD 9 billion realized; divestment pipeline is robust
* USD 20-25 billion in expected gross client demand confirmed for
full-year 2024
Partners Group received USD 11.1 billion in new commitments from its global
client base in H1 2024, bringing the firm's total assets under management
(AuM(1)) to USD 149.2 billion as of 30 June 2024 (30 June 2023: USD 141.7
billion). The firm committed USD 9.2 billion (H1 2023: USD 5.9 billion)
globally to investments across private markets asset classes and generated
USD 9.2 billion (H1 2023: USD 5.4 billion) in realizations. Partners Group
reconfirms its full-year 2024 guidance for total fundraising of USD 20 to 25
billion.
H1 was characterized by gradually improving market fundamentals while
realizations in the industry remained muted and distributions to investors
are at historically low levels. Consequently, although the pace of client
conversion rates for traditional closed-ended funds did increase relative to
the previous period, it remained slower than anticipated. Demand for bespoke
private markets solutions was again the largest contributor to inflows, with
interest from private wealth clients accelerating.
David Layton, Partner and Chief Executive Officer, comments: "We are pleased
to report solid business development in what we believe is a transition
period for the industry. Our near-term transaction pipeline of thematically
sourced investments is full across all asset classes, including for our
newly launched private markets royalties business. To generate sustainable
returns for our clients in this market, our transformational investing
approach is key. It allows us to consistently identify businesses and assets
that benefit from future growth themes and transform them into industry
leaders."
USD 11 billion in new client demand in H1, led by bespoke client solutions
Overall client demand resulted in total new commitments of USD 11.1 billion
(H1 2023: USD 8.0 billion). Bespoke client solutions continued to grow in
importance for the firm, contributing the largest share to fundraising at
USD 8.6 billion and accounting for 77% of assets raised (H1 2023: 68%). Such
tailored solutions are increasingly becoming a focus for the industry as
clients seek to customize their private markets exposure beyond the
constraints of the traditional closed-ended vehicles that have been the
hallmark of the industry in the past.
* Mandates (USD 4.0 billion raised): these bespoke portfolios allow large
institutional clients to customize their long-term target allocations to
private markets using separately managed accounts and are increasingly
preferred by private markets investors. As of 30 June 2024, Partners
Group manages 39% of its AuM in mandates (USD 58.2 billion).
* Evergreens (USD 4.6 billion raised): these programs offer immediate
exposure to a diversified private markets portfolio without subsequent
capital calls as well as limited liquidity to address the specific needs
of individual investors. As of 30 June 2024, Partners Group manages 30%
of its AuM in evergreens (USD 45.5 billion).
* Traditional closed-ended private market programs (USD 2.6 billion
raised): In H1, Partners Group closed fundraising for its fifth direct
private equity program and has several additional programs in
fundraising. As of 30 June 2024, Partners Group manages 31% of its AuM
in traditional private markets programs (USD 45.5 billion).
Gross client demand stood at USD 11.1 billion before tail-down effects from
mature private markets investment programs amounting to USD -4.5 billion and
redemptions from evergreen programs totaling USD -2.5 billion. Foreign
exchange effects affected AuM growth by USD -2.2 billion during the period.
A final USD 0.2 billion came from other factors such as a select number of
investment programs that link AuM to NAV development(2).
Breakdown of total AuM as of 30 June 2024 (in USD billion):
31 Dec 30 Jun Gross client Last 5 years
23 24 demand CAGR(3)
Private 75.5 75.9 4.7 11%
equity
Private 29.3 30.8 4.0 9%
credit
Infrastructur- 25.2 26.4 2.0 19%
e
Real estate 17.0 15.9 0.3 2%
Royalties 0.0 0.1 0.1 n/a
Total 146.9 149.2 11.1 10%
USD 9 billion invested in H1, transaction environment gradually improving
Partners Group invested USD 9.2 billion (H1 2023: USD 5.9 billion) on behalf
of its clients into companies and assets during the first half of the year,
up 55% from the same period last year and diversified across its platform.
Partners Group continued to invest with a focus on direct control and
thematically sourced investments, as the transaction environment showed
signs of improvement in H1. The firm applies deep thematic research to
identify high conviction sub-sectors supported by resilient long-term global
trends and builds conviction for investments based on value creation plans
developed in conjunction with the expertise of Partners Group's large
network of seasoned external industry experts.
In one example of note within private equity, Partners Group, acting on
behalf of its clients, agreed to purchase a majority stake in FairJourney
Biologics, a leading antibody discovery Contract Research Organization,
based in Portugal and the UK. FairJourney is set to benefit from several
structural tailwinds driving growth in the market for antibody discovery.
Partners Group will partner with founder António Parada to build on
FairJourney's unique positioning, expanding its technology and capabilities
through organic and inorganic investment to unlock faster, more effective
drug development for its partners.
Partners Group invested 57% of its total global volume into direct assets on
behalf of its clients. The remaining 43% of the total investment volume was
invested into portfolio assets. These included secondary investments into
globally diversified private markets portfolios, which are often tactically
overweighted during periods of economic recalibration as part of Partners
Group's relative value asset allocation management, as well as select
primary commitments to other complementary private markets strategies and
investments into the broadly syndicated loan market.
USD 9 billion realized in H1, concentration across credit and portfolio
assets
Portfolio realizations amounted to USD 9.2 billion (H1 2023: USD 5.4
billion). In an exit environment that remained subdued for headline equity
transactions, Partners Group's diversified platform continued to provide
realizations for the benefit of clients. During the period, distributions
stemmed primarily from credit and portfolio asset sales, which amounted to
68% of total realizations (H1 2023: 61%). Portfolio assets are an important
tool for providing diversification and liquidity in an overall private
markets portfolio as they provide a diverse stream of distributions across
cycles.
Outlook H2 2024
Partners Group sees the outlook for long-term, sustainable growth in the
private markets industry, supported by strong structural tailwinds and
increasing growth in client demand. In particular, the shift to tailored
mandates and growing demand from individual investors for private markets
solutions are expected to drive future growth for the industry. The firm has
been a pioneer in both categories and has built a leadership position over
the last 20 years of building bespoke solutions.
For the full year 2024, Partners Group continues to expect to raise between
USD 20 to 25 billion in total client demand. Full-year estimates for
tail-down effects from more mature closed-ended investment programs remain
unchanged at USD -8 to -9 billion. The firm reaffirms its full year guidance
based on the previously communicated assumption of a continued normalization
of the investment environment. While traditional fundraising remains slow as
client conversion periods have not yet normalized, bespoke client solutions
are expected to continue to drive fundraising in 2024.
Sarah Brewer, Partner and Global Co-Head Client Solutions, adds: "We are
pleased that clients continue to place their trust in us and believe there
are several factors supporting the sustainable growth of our platform in an
evolving market environment. Firstly, the increasing desire for customized
alternatives to traditional closed-ended funds. Secondly, the continued
consolidation of the industry as investors look for more comprehensive
private markets solutions from a smaller number of large managers that are
seeking to diversify their platforms. As a pioneer in providing bespoke
client solutions and one of the largest firms in the global private markets
industry, we are well positioned to take advantage of these trends."
Conference call today
Partners Group's senior management will hold a conference call today at
6:15pm CEST. To register for the call, please click here or use the contact
details at the end of this press release.
Key dates/publications
03 September 2024 Interim Financial Results and Report as of 30 June 2024,
7:00am CEST
14 January 2025 Announcement of AuM as of 31 December 2024, 5:45pm CET
(1) AuM is an Alternative Performance Metric (APM). A description of the
APMs can be found in Partners Group's 2023 Annual Report on pages 32-33,
available for download at
http://www.partnersgroup.com/en/shareholders/reports-presentations/. AUM
figures are for Partners Group Holding AG, inclusive of all Partners Group
affiliates.
(2) Partners Group reports fee-paying AuM. Most of the firm's evergreen
programs base fees on NAV. The portfolio performance during the period
impacts the NAV of these products and this translates to a corresponding
change in firm-level AuM. Calculations for semi-annual AuM numbers for
evergreen programs are based on 31 May NAV valuations and include net flows
as of 30 June. Full-year AuM numbers will be based on 30 November NAV
valuations and include net flows as of 31 December.
(3) CAGR: compound annual growth rate for net assets for the period 30 June
2019 - 30 June 2024.
About Partners Group
Partners Group is one of the largest firms in the global private markets
industry, with around 1'800 professionals and approximately USD 150 billion
in assets under management. The firm has investment programs and custom
mandates spanning private equity, private credit, infrastructure, real
estate, and royalties. With its heritage in Switzerland and its primary
presence in the Americas in Colorado, Partners Group is built differently
from the rest of the industry. The firm leverages its differentiated culture
and its operationally oriented approach to identify attractive investment
themes and to build businesses and assets into market leaders. 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
Alec Zimmermann
Phone: +41 41 784 69 68
Email: alec.zimmermann@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: 1944701
End of Announcement EQS News Service
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1944701 11-Jul-2024 CET/CEST
