Partners Group, the Switzerland-based global alternative asset manager, announces that the funds raised for 2008 amount to CHF 6.2 billion, thereby exceeding the target of CHF 5-6 billion set at the beginning of 2008 and representing asset inflows of 32% in its core private markets (private equity, private debt, private real estate, private infrastructure) business. The second half of the year continued to see sustained demand from clients for private market products, with total assets raised of CHF 2.4 billion of which CHF 1.6 billion were raised in Q4.
Baar-Zug, 14 January 2009
Overall assets under management (AuM) development was impacted by extraordinary effects during 2008, also amounting to CHF 6.2 billion. These primarily stem from adverse foreign exchange developments, with the CHF (the firm's reporting currency) strengthening significantly against both the EUR and the USD, as well as from redemptions and negative performance predominantly in the smaller segment of public market activities. The foreign exchange impact in December alone amounted to CHF 1.1 billion, resulting in estimated year-end AuM of CHF 24.4 billion which is approximately CHF 1 billion below the firm's guidance as of November 2008.
The strong growth in the core private markets segment has resulted in an increased duration of AuM, with long-term assets rising from 73% as of the end of 2007 to 86% at the end of 2008, while public market assets now only amount to 7% of total AuM. Partners Group's stable revenues stem from management fees, which in limited partnerships are based on long-term commitments.
Dr. Marcel Erni, founding Partner and Chief Investment Officer, comments, “The turbulence seen in 2008 has also affected private markets, with well-diversified portfolios seeing NAV corrections of 10-15% as of year-end. However, our clients know to expect further value corrections in the magnitude of 15-20% on their portfolios. Despite these corrections, our overall asset base runs at a significant IRR far above public market comparables, encouraging many of our clients to re-commit or expand their private market programs as witnessed by our strong asset inflows in the second half of 2008, with CHF 1.6 billion raised in the fourth quarter alone.”
Partners Group's portfolios have only limited exposure to the highly leveraged, large and mega-large buyout transactions completed during 2006/2007, with only 7% of AuM in this segment. In the current crisis, Partners Group's broad global investment approach, applying a relative value assessment and diversifying portfolios across regions, financing stages and vintage years, is validated. Significant investment opportunities currently arise from distressed sellers seeking liquidity, and Partners Group, with CHF 7 billion of uninvested capital, is ideally positioned to profit from this extraordinary environment in which liquidity-constrained market participants have to sell quality assets at significant discounts to fair market value.
The current breakdown of AuM is as follows: CHF 19.2 billion private equity, CHF 2.6 billion private debt, CHF 0.5 billion private real estate, CHF 0.3 billion private infrastructure and CHF 1.8 billion in public markets, comprising absolute return strategies, listed alternatives and the independent private wealth management division.
The firm's outlook remains positive based on the current investment opportunities as well as the continued demand for private markets investing observed amongst its clients and the continued structural shift towards this segment. Partners Group targets asset inflows of CHF 4 billion in 2009 and year-end AuM of CHF 26-29 billion.
Partners Group's senior management will hold a conference call today at 9 am CET. Dial-in details can be obtained using the contact details below. The audited financial figures for 2008 will be published on 16 March 2009.
Key dates 2009
16 March 2009
Annual results 2008
30 April 2009
Annual general meeting
10 July 2009
Pre-close announcement AuM as of 30 June 2009
1 September 2009
Semi-annual results as of 30 June 2009
About Partners Group
Partners Group is a global alternative asset management firm with over CHF 24 billion in investment programs under management in private equity, private debt, private real estate, private infrastructure, absolute return strategies and listed alternatives. The firm manages a broad range of funds, structured products and customized portfolios for an international clientele of institutional investors, private banks and other financial institutions. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, London, Guernsey, Luxembourg, Singapore, Beijing, Tokyo and Sydney. The firm employs over 340 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 2 billion and majority owned by its 38 Partners and all employees.