Baar-Zug, Switzerland, 16 July 2019
Partners Group reports total AuM of EUR 80 billion as of 30 June 2019
- Gross client demand of EUR 7.4 billion in H1 2019
- Total of USD 6.9 billion invested in H1 2019
- Expected gross client demand of EUR 13-16 billion in 2019 reconfirmed
Partners Group, the global private markets investment manager, received EUR 7.4 billion in new commitments from its global client base across all private markets asset classes in the first half of 2019. This demand for programs and mandates brings total assets under management (AuM) to EUR 79.8 billion as of 30 June 2019 (31 December 2018: EUR 72.8 billion), representing a net growth rate of 9%.
The breakdown of total AuM as of 30 June 2019 is as follows: EUR 40 billion private equity (50%), EUR 17 billion private debt (22%), EUR 13 billion private real estate (16%), and EUR 10 billion private infrastructure (12%).
AuM development in H1 2019
In H1 2019, clients across all regions entrusted Partners Group with EUR 7.4 billion in new commitments. Among the main programs contributing to fundraising during the period were a range of next generation flagship programs, focusing on direct private equity, global infrastructure and real estate opportunities as well as multi-asset credit and senior loans.
Alongside new commitments received during the period, tail-down effects from mature private markets investment programs and redemptions from liquid and semi-liquid vehicles amounted to a total of EUR -1.7 billion. Tail-downs are expected to be strongly skewed towards the second half of the year, as a number of larger closed-ended programs will reach the end of their lifetime (full-year guidance for tail-downs and redemptions: EUR -6.5 to -7.5 billion). A positive contribution of EUR +1.0 billion stemmed mainly from performance- and investment-related effects from a select number of investment programs. The remaining EUR +0.2 billion was driven by foreign exchange effects. Overall, this resulted in net AuM growth of EUR 6.9 billion during the period.
André Frei, Partner and Co-Chief Executive Officer, states: "We are very pleased about the ongoing dialogue we are having with many of our clients about their strategic and long-term private markets allocation plans. Our strong track record and dedication to service excellence attract sophisticated investors from across the world who want to build up exposure across private markets asset classes. A large proportion of the demand in the first half of this year stems from flagship programs that are expected to significantly contribute to fundraising over the next twelve to 18 months."
USD 6.9 billion invested in attractive and resilient businesses and assets in H1 2019
After a record investment year in 2018, Partners Group invested a total of USD 6.9 billion on behalf of its clients across all private markets asset classes in H1 2019, maintaining its highly disciplined and selective approach to investment.
David Layton, Partner and Co-Chief Executive Officer, comments: "By mapping out the most promising companies and assets early on and fostering relationships that can help to outpace the competition, we are not forced to give into market pressure and compromise on pricing and, ultimately, on target returns to our clients. The investment of USD 7 billion on behalf of our clients in this crowded and fast-paced market environment serves as confirmation that our Thematic Sourcing approach enables us to identify the investment themes that can deliver transformational growth."
Partners Group's investment professionals screened around 1,300 potential direct transactions across all private markets asset classes in H1 2019, investing in 29 of them and registering a decline rate of 98%. USD 4.1 billion (60% of total investment volume) was deployed in direct assets, of which a total of USD 2.3 billion was invested as equity in individual businesses and USD 1.8 billion was invested in corporate debt. To complement its direct assets, the firm invested USD 2.8 billion (40% of total investment volume) in portfolio assets. These portfolio assets include secondary investments in globally diversified private markets portfolios and select primary commitments to other private markets managers.
Expected gross client demand for 2019 reconfirmed
Based on a solid first half of the year, the firm reconfirms the communicated expected range of EUR 13-16 billion in new client commitments for the full year 2019. It also reconfirms the expected EUR -6.5 to -7.5 billion in tail-down effects from the more mature Partners Group programs and potential redemptions from liquid and semi-liquid programs.
Fundraising will be spread across a variety of solutions spanning all private markets asset classes, including flagship programs, customized mandates and the firm's extensive range of innovative semi-liquid offerings.
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 at the end of this press release.
Key dates 2019/2020
10 September 2019
Interim results and Interim Report as of 30 June 2019; presentation and conference call at the London Stock Exchange, London, 9am GMT
16 January 2020
Announcement of AuM as of 31 December 2019; conference call, 9am CET
17 March 2020
Annual results and Annual Report as of 31 December 2019