Baar-Zug, 19 March 2013
- Sustained client demand resulted in inflows of EUR 4.9 billion in 2012, at the upper end of the expected range of EUR 4-5 billion. The firm reconfirms expected demand of EUR 4-6 billion in 2013.
- Revenues increased by 29% to CHF 447 million (2011: CHF 346 million), while the revenue margin was at 1.37% (2011: 1.23%), mainly due to higher performance fee income.
- EBITDA rose in line with revenues by 29% to CHF 275 million (2011: CHF 212 million) while the EBITDA margin remained stable at 61% (2011: 61%).
- With a stable positive financial result of CHF 26 million, adjusted net profit increased by 25% to CHF 266 million (2011: CHF 212 million).
- The board of directors intends to propose a dividend of CHF 6.25 per share (2011: CHF 5.50) to shareholders on 2 May 2013.
Client demand continues to be driven both by Partners Group's track record as well as by its breadth of investment platform and service capabilities and the firm has seen sustained AuM growth of 18% p.a. since the peak of the global financial crisis in 2009. In 2012, the entire offering resulted in asset inflows of EUR 4.9 billion (2011: EUR 4.2 billion) at the upper end of the expected range (EUR 4-5 billion). The dominant regions were Continental Europe, UK and North America, contributing in aggregate over 80% of total client demand, while corporate and public pension plans remained the most important driver of demand, contributing 73% of all 2012 inflows. The firm expects future client commitments of EUR 4-6 billion in 2013 (2012: CHF 4.9 billion). This gross client demand will likely be impacted by an expected EUR -1.0 to -1.5 billion in 2013 from other factors (2012: CHF -1.2 billion).
Recurring revenues stemming from management fees increased accordingly, rising 17% to CHF 370 million (2011: CHF 317 million). A substantial positive contribution came from performance fees of CHF 43 million (2011: CHF 13 million), with total revenues growing by 29% to CHF 447 million in 2012 (2011: CHF 346 million). The recurring revenue margin remained stable in the period at 1.13% (2011: 1.13%). Mainly as a result of the higher performance fees, the overall revenue margin increased to 1.37% (2011: 1.23%).
Partners Group continues to place a strong emphasis on disciplined cost management and new costs have remained proportional to new revenues and in line with previous practice. This discipline resulted in a stable EBITDA margin of 61% (2011: 61%) despite the continued build-out of the team across the globe, which increased by over 50 employees to 625 as of the end of 2012. EBITDA increased by 29% in 2012 to CHF 275 million (2011: CHF 212 million) and was thus in line with total revenue development.
The financial result, comprising net gains on own investments, net interest income and net foreign exchange results, positively contributed CHF 26 million and was in line with the previous year (2011: CHF 26 million). Overall, the adjusted net profit increased by 25% to CHF 266 million (2011: CHF 212 million).
Based on the expected positive further development of its business activities in all areas, Partners Group's board of directors intends to propose a dividend of CHF 6.25 per share (2011: CHF 5.50) to shareholders at the annual general meeting on 2 May 2013, representing a dividend increase of 14%. The total proposed payout corresponds to a 63% payout ratio and represents a dividend yield of 3.0% as of the share price of CHF 211.20 on 31 December 2012.
Steffen Meister, Partner and Chief Executive Officer, comments “We are very pleased to be able to look back on a further successful year for our firm in which we continued to build on both our investment as well as our client servicing capabilities. Going forward, the ongoing search for superior global investment capacity will continue to drive the expansion of our investment platform across regions and the private markets sub-asset classes. In this, our organizational setup provides the appropriate framework for the firm to advance to the next level in its global investment and client activities as well as in its corporate development.”
Charles Dallara, Partner and Chairman Americas, adds “We are currently in an environment in which institutional investors face the risk of not meeting their long-term return targets with their present asset allocation. We are convinced that investing through a global private markets investment platform which offers access to a wide range of opportunities worldwide and thus to attractive returns will help our clients face their long-term challenges for the benefit of millions of their beneficiaries. Many investors look to concentrate their private markets investments through one or only a very small number of global leaders. Being able to offer all-encompassing and customized services to a sophisticated and demanding client base remains crucial to the future success of any global private markets investment manager.”
Partners Group's senior management will hold a press conference to discuss the annual results today at 9.00 am CET at the SIX ConventionPoint in Zurich. Dial-in details for the conference can be obtained using the contact details below.
The annual report 2012 was published today at 7.00 am CET and is available for download at www.partnersgroup.com/financialreports.
(in CHF m)
Adjusted net profit1
1 Adjusted for certain non-cash items relating to our capital-protected product Pearl
Key dates 2013
2 May 2013
Annual general meeting
6 May 2013
7 May 2013
Dividend record date
10 May 2013
Dividend payment date
11 July 2013
Announcement of AuM as of 30 June 2013
10 September 2013
Semi-annual results as of 30 June 2013