- Revenues for the first half of 2009 remained stable at CHF 158.9 million (H1 2008: CHF 159.9 million).
- EBITDA of CHF 114.4 million close to record 2008 level (H1 2008: CHF 115.9 million) with EBITDA margin at 72% comfortably above target of >70%.
- Adjusted net profit1 amounted to CHF 85.1 million (H1 2008: CHF 110.1 million) with the decrease due to revaluations of Partners Group's own general partner commitments to investment programs.
- The firm expects no significant further writedowns in H2 2009.
- Partners Group reconfirms its gross asset-raising target of CHF 3–4 billion for 2009.
Baar-Zug, 1 September 2009
Net revenues for the first half of 2009 remained stable at CHF 158.9 million (H1 2008: CHF 159.9 million). Revenues from private markets increased by 8% compared to the previous year due to the continued strong inflows in these segments, thereby balancing out the lower revenues from the niche public markets segment. The further shift towards private markets products also resulted in increased recurring revenues of CHF 141.7 million in H1 2009 compared to CHF 137.2 million in the previous year.
In the first half of 2009, EBITDA remained stable at CHF 114.4 million compared to the H1 2008 record result of CHF 115.9 million. The EBITDA margin stood at 72% (H1 2008: 73%) and remained above the target of >70%.
Adjusted net profit1 amounted to CHF 85.1 million for the six-month period, compared to CHF 110.1 million in the first six months of 2008. The lower adjusted net profit is largely driven by the CHF 24.4 million lower financial result in the first half of 2009 (CHF -20.4 million) compared to the same period in 2008 (CHF +4.0 million).
The negative financial result of CHF -20.4 million for the first six months of 2009 predominantly stems from further temporary valuation adjustments on Partners Group's own general partner commitments to investment programs (an extra CHF -13.9 million since 31 December 2008). The FX result had an additional negative impact of CHF -8.7 million. Furthermore, interest income declined to CHF 2.1 million compared to CHF 5.5 million in the previous year due to a lower interest rate environment despite significant cash positions of CHF 156 million on average on the firm's balance sheet.
Partners Group reconfirms its target of CHF 3-4 billion in gross new money for the full year 2009, after CHF 1.4 billion in assets were raised in the first six months of the year with AuM standing at CHF 24.9 billion as of 30 June 2009. The firm has a strong pipeline and expects to see sustained inflows in the second half of the year, especially with the improved global market sentiment in recent months. In particular, interest from clients based in Asia has markedly increased, with assets raised in Asia-Pacific increasing to 11% of the total, compared to 2% in 2008.
Alfred Gantner, co-founder and Executive Chairman, comments, “We are satisfied with the development of Partners Group in the first six months of the year. In the past two years since the onset of the financial crisis in July 2007, Partners Group's business has proven remarkably stable and we have managed to weather the storm well. During this period of extreme uncertainty on financial markets, the firm has increased assets under management from CHF 22.0 billion to CHF 24.9 billion, with private markets assets growing from CHF 16.1 billion to CHF 23.3 billion. Furthermore, Partners Group has continued to focus on enlarging its global team, reinforcing our global reach and leadership for the advantage of our clients. Thus, the number of employees has grown by 60% since July 2007 to a total of 355 as of 30 June 2009 with now ten offices around the world, of which four were opened during the last two years."
Dr. Marcel Erni, co-founder and Chief Investment Officer, adds, "Following the market dislocation and its effects on the global economy, we are currently seeing one of the most attractive investment environments in our history. Investments in emerging Asia remain highly attractive due to the decoupling of these markets from the global economy and the strong growth prospects. We also continue to emphasize direct investment opportunities, which profit from the generally low valuations and present a unique opportunity for experienced, well-connected investors. In addition, concerns regarding a stagflationary scenario lead us to advise clients to increase allocations to inflation-linked asset classes such as infrastructure, real estate, natural resources and mezzanine."
Due to the expected strong growth of the firm in the coming years, the need to create a position focused on the global strategic development of the firm's operations has been identified. Kurt Birchler, currently Chief Financial Officer, will take on the overall responsibility for this mandate starting 1 January 2010 and will report directly to the Chief Executive Officer and Chief Operating Officer of Partners Group as Head Operations Development. In this role, he will place special emphasis on the operations activities in Singapore where Partners Group continues to build its main operational hub. In twelve years as Chief Financial Officer at Partners Group, Kurt Birchler has been instrumental in the successful build-up of the group-wide finance department of the firm and all relevant processes and systems. Due to his extensive experience he possesses in-depth knowledge of all group-wide operations and is thus ideally equipped to manage this further development. Dr. Cyrill Wipfli, a Partner of the firm, currently Head Communications and a member of the business strategy and corporate development team, will succeed Kurt Birchler as Chief Financial Officer of Partners Group and will take his place on the Executive Board as of 1 January 2010.
Partners Group's senior management will hold a press conference to discuss the annual results today at 9.00 am CET at the Hotel Widder in Zurich. Dial-in details for the conference call can be obtained using the contact details below.
The interim report as of 30 June 2009 was published today at 7.00 am CET and is available for download here.
(in CHF m)
Adjusted net profit1
1 Adjusted = excluding changes in fair value of derivatives arising from insurance contracts, amounting to CHF +14.1 million in H1 2007, CHF +6.6 million in H1 2008 and CHF -3.0 million in H1 2009, resulting in an IFRS net profit of CHF 121.6 million for H1 2007, CHF 116.7 million for H1 2008 and CHF 82.1 million for H1 2009.