Ad hoc announcements pursuant to Art. 53 Listing Rules (LR)
Baar-Zug, Switzerland, 24 March 2015
- USD 7.9 billion invested in compelling opportunities across the entire private markets spectrum in 2014 (2013: USD 7.7 billion)
- Private markets client demand of EUR 6.1 billion in 2014 (2013: EUR 5.1 billion); expected range of EUR 5-7 billion in gross client demand reconfirmed for 2015
- Revenues at record level of CHF 574 million (2013: CHF 492 million), increasing by 17%
- EBITDA reached a record CHF 347 million (2013: CHF 300 million), increasing by 16%
- Stable EBITDA margin at 60% (2013: 61%) in line with an unchanged target of ~60% on new business
- Adj. net profit climbed 15% to CHF 336 million (2013: CHF 292 million)
- Partners Group's Board of Directors will propose a dividend of CHF 8.50 per share (2014: CHF 7.25) to shareholders on 13 May 2015
2014 was another year of growth and successful corporate development for Partners Group. Assets under management (AuM) stood at EUR 37.6 billion as of 31 December 2014, while the team size grew to almost 750 professionals across the firm's 18 offices. With a further strengthening of the investment platform, the firm was able to deploy USD 7.9 billion in attractive private markets investments globally on behalf of its clients. The firm also took advantage of the robust exit environment with underlying portfolio distributions of USD 5.9 billion in the last twelve months.
Christoph Rubeli, Partner and Co-Chief Executive Officer of Partners Group, states: "In 2014, selectivity remained of utmost importance in an environment of high asset prices despite the continuing subdued macroeconomic outlook. We were pleased that the size and strength of our global sourcing platform again enabled robust deal flow in all private markets asset classes. Our investment teams screened over 3'600 direct transactions, over USD 107 billion of secondary market deal flow and over 600 primaries in the course of last year, transacting on 3% of these."
Summary of financial figures
Key figures 2013 and 2014
(in CHF m)
Adjusted net profit3
IFRS net profit
1 Revenues from management and advisory services, net, including other operating income and share of results of associates.
2 Management fees include recurring management fees, late management fees and other income.
3 Adjusted for certain non-cash items relating to the capital-protected investment program Pearl, net of settlement.
Overall revenues of Partners Group increased by 17% to CHF 574 million in 2014 (2013: CHF 492 million). Revenues from management fees amounted to CHF 540 million (2013: CHF 453 million) and represented 94% of the overall revenues during the period, rising 19% year-on-year. Performance fees accounted for the remaining CHF 34 million in 2014 (2013: CHF 39 million) and represented 6% of the overall revenues.
Partners Group manages costs in a disciplined manner. In 2014, the firm's EBITDA margin remained stable at 60% (2013: 61%) and EBITDA increased by 16% in line with revenues and amounted to CHF 347 million (2013: CHF 300 million).
Partners Group invests alongside its clients in its investment programs (typically 1%). In 2014, strong value creation in these investment programs was the largest contributor to the financial result, which amounted to CHF 37 million (2013: CHF 31 million).
As a result, the adjusted net profit increased by 15% in 2014, standing at CHF 336 million (2013: CHF 292 million) and representing a new record amount for the firm. IFRS profit increased by 18% in 2014, standing at CHF 375 million (2013: CHF 317 million).
Based on a solid operating result in all asset classes and regions and their confidence about the future potential of the business, Partners Group's Board of Directors will propose a dividend of CHF 8.50 per share (2014: CHF 7.25 per share) to shareholders at the Annual General Meeting on 13 May 2015. This represents a dividend increase of 17%, in line with the development of revenues and adjusted net profit.
Partners Group's EBITDA margin target of ~60% on new business remains unchanged. Due to the significant strengthening of the Swiss franc against other currencies in the first quarter of the year, the firm's overall EBITDA margin is likely to fall below 60% in 2015. The actual impact from foreign exchange rate changes on the EBITDA margin depends on final average rates calculated at year-end.
Increased distribution activity in recent years has further increased the maturity profile of a number of client portfolios and therefore increased the visibility on performance fees, which have significant potential to grow in the years to come. In 2015, Partners Group expects to realize additional performance upside of over CHF 30 million from its share in the private equity portfolio of the Partners Group product, Pearl, following its conversion.
Partners Group expects continued strong client interest in its investment programs and tailor-made mandate solutions, driven by its solid pipeline of investment opportunities, and thus for 2015 reconfirms the anticipated bandwidth for gross client commitments of EUR 5-7 billion (2014: EUR 4.5-6.5 billion). Next to higher projected gross client demand for 2015, Partners Group also reconfirms EUR -2 to -3 billion (2014: EUR -1.5 to -2.5 billion) in tail-down effects from the more mature Partners Group programs and potential redemptions from liquid and semi-liquid programs.
André Frei, Partner and Co-Chief Executive Officer of Partners Group, comments: "We see three key trends: continued growth in institutional assets globally, increasing allocations to private markets, and more complex client needs. As a dedicated private markets investment manager with a substantial global footprint, these trends play directly to our strengths. As a result, tailored private markets mandates represented almost half of total new client demand in 2014 and today account for roughly a third of our AuM."
Peter Wuffli, Chairman of the Board of Directors of Partners Group, concludes: "We will continue to invest in our global investment management and client servicing capabilities. Our organic development strategy, focus on value creation and strong culture contribute to further strengthening our position as a global leader in the private markets investment management industry."
Press conference and annual report 2014
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 as of 31 December 2014 was published today at 7.00 am CET and is available for download at www.partnersgroup.com/financialreports.
Key dates 2015
13 May 2015
Annual General Meeting
19 May 2015
22 May 2015
Dividend payment date
16 July 2015
Announcement of AuM as of 30 June 2015
8 September 2015
Interim results & interim report as of 30 June 2015