Price sensitive ("ad hoc") releases
Zug-Baar, 10 March 2008
Partners Group achieved a record result for the financial year 2007, a reflection of the continued successful development of the business. The consistent returns achieved for clients have resulted in significant growth in assets of CHF 7.1 billion to CHF 24.4 billion (+41%) and enabled an excellent financial performance.
Net revenues for 2007 totaled CHF 311 million, an increase of 55% compared to 2006, with 88% of revenues again stemming from stable management fees (CHF 273 million). Additional income was generated through performance fees (CHF 27 million) and organizational fees (CHF 11 million).
Operating costs rose at a slower pace by 45% to CHF 79 million, with the growth predominantly attributable to the strong increase in the number of employees triggered by the record asset development. This controlled rise in costs resulted in an over proportional increase in EBITDA by 58% to CHF 232 million, thereby achieving a record EBITDA margin of 74% for the year.
Adjusted net profit totaled CHF 228 million, up 61% compared to 2006. Additional profits of CHF 28 million stem from changes in fair value of derivatives arising from insurance contracts, thus the net profit according to IFRS stands at CHF 255 million.
At the annual general meeting on 11 April 2008, Partners Group will propose a distribution of 50% of adjusted net profit to shareholders, corresponding to a dividend of CHF 4.25 per share.
Steffen Meister, Partner and chief executive officer of Partners Group, comments “We are satisfied with how we are weathering the financial market storm. In 2008, we expect solid asset inflows into our private market products while on the other hand further net redemptions are anticipated in our smaller public market business. However, we still aim to be in reach of CHF 30 billion assets under management by year end, certainly a realistic but ambitious target in this challenging market environment.”
Dr. Marcel Erni, Partner and chief investment officer at Partners Group, adds “We are convinced that the current market situation offers excellent investment opportunities in many private market segments, and the second half of 2007 marked a record period in terms of our investment volume. The current credit market crisis undoubtedly shut down investments at the larger end of the buyout spectrum. This is however more than compensated for by a substantial increase in secondary market opportunities, significantly improved terms in the mezzanine market as well as attractive valuations in special situations and listed private equity. We are confident that we are currently making highly attractive investments with significant return potential for clients.”
(in CHF m)
Adj. net profit
Adjusted = excluding changes in fair value of derivatives arising from insurance contracts