Baar-Zug, Switzerland, 16 July 2015
Partners Group reports H1 2015 client demand of EUR 3.8 billion, investments of USD 4.5 billion, and increases full-year guidance for new client commitments by EUR 1 billion
Partners Group, the global private markets investment manager, has seen gross client demand of EUR 3.8 billion in the first half of 2015, bringing total assets under management (AuM) to EUR 42.1 billion as of 30 June 2015 (31 December 2014: EUR 37.6 billion) and representing net growth of 12% for the first six months of the year. Based on strong client demand and a solid pipeline of investment opportunities, Partners Group is increasing its guidance for the anticipated bandwidth of gross client commitments for the full year 2015 by EUR 1 billion, lifting the range from EUR 5-7 billion to EUR 6-8 billion.
The breakdown of total AuM as of 30 June 2015 is as follows: EUR 25 billion private equity, EUR 8 billion private real estate, EUR 5 billion private debt and EUR 4 billion private infrastructure. Particularly strong inflows have been seen for the private equity secondary and senior loan offerings. Appetite for customized mandate solutions continues to account for a significant proportion of client demand, indicating that one-stop private markets solutions are the preferred choice for many investors.
USD 4.5 billion invested in H1 2015 across the entire platform
In the first six months of the year, Partners Group invested a total of USD 4.5 billion in private markets assets across sectors, regions and industries on behalf of its clients. Of this, the firm deployed a total of USD 2.6 billion (58% of total investment volume) in direct transactions, of which USD 1.1 billion was invested in 16 individual assets across private equity, private real estate and private infrastructure and USD 1.5 billion was invested in 41 credits. The firm's secondaries investment teams invested a total of USD 1.1 billion (23%) in globally diversified private markets portfolios. To complement its direct and secondary investments, the firm committed USD 0.8 billion (19%) to select private markets managers.
Strong deal flow and high selectivity
Through the firm's global platform, extensive industry network and pro-active sourcing efforts, Partners Group was able to continue its selective investment process and screened almost 2'000 direct transactions across asset classes, investing in only 57 of them with a decline rate of 97%. Partners Group's secondary investment specialists screened over USD 71 billion of private markets assets and invested in USD 1.1 billion, declining over 98% of assets screened. The firm continued to expand its platform to 782 employees (31 December 2014: 746) in the first six months of the year, further enhancing its overall investment capacity.
Unchanged guidance for negative effects for the full year 2015; foreign exchange support in H1 2015
Next to the gross AuM growth in the first half of 2015, there were approximately EUR -0.8 billion in tail-down effects from mature private markets investment programs and EUR -0.3 billion in redemptions from liquid and semi-liquid vehicles, amounting to a total of EUR -1.0 billion (rounded) in the first half of the year. Partners Group's full year 2015 estimates on these two negative effects have not changed and amount to a total of EUR -2 to -3 billion (2014: EUR -2.1 billion).
Given that around one third of Partners Group's AuM is USD-denominated, the strengthening of the US Dollar against the Euro by 9% in the first half of 2015 supported the firm's EUR-denominated AuM. Overall, foreign exchange effects amounted to EUR +1.4 billion in H1 2015. A further positive contribution of EUR +0.3 billion stemmed mainly from performance-related effects from a select number of investment vehicles. As a result, the positive factors of EUR +1.7 billion more than compensated for the negative effects of EUR -1.0 billion.
Focus on value creation
Christoph Rubeli, Partner and Co-Chief Executive Officer, comments: "With the continued low growth environment globally and elevated valuations, access to high-quality transactions with value creation potential and downside protection has become the key differentiator for managers in private markets. By combining global reach with local networks and expertise across private markets, we are able to engage with industry leaders and entrepreneurs in all key markets to pro-actively source these investment opportunities for our clients."
Matching strong client demand with attractive private markets assetsAndré Frei, Partner and Co-Chief Executive Officer, adds: "The strong demand seen from our clients in the first six months of the year reconfirms the overall attractiveness of private markets. We are uniquely positioned to outperform across cycles, to offer multi-asset class solutions, to invest according to our relative value approach and to provide exceptional service to our clients. These key building blocks support us in matching strong client demand with attractive private markets assets."
Conference call today
Partners Group's senior management will hold a conference call today at 9am CET. Dial-in details can be obtained by using the contact details below. The semi-annual results as of 30 June 2015 will be published on 8 September 2015.