Price sensitive ("ad hoc") releases
Partners Group, the Switzerland-based alternative asset manager, achieved a solid semi-annual result for H1 2008, reflecting sustained development despite the challenging environment in global financial markets. The annualized 39% direct AuM growth seen in private markets activities in H1 2008 is a result of the excellent track record achieved for clients for over a decade and underlines the structural growth of these markets.
Zug-Baar, 2 September 2008
Net revenues for the first half of the year amounted to CHF 159.9 million, representing an increase of CHF 13.2 million compared to H1 2007, with 90% (CHF 143.8 million) stemming from stable management fees. Partners Group's asset base continues to be characterized by a long-term duration with currently 81% of total AuM being committed to long-term investment programs. The net revenue margin is well within the target range, amounting to 1.33% for the six-month period despite lower performance fees against weak financial markets.
Operating costs rose by 29% to CHF 44.0 million compared to the first six months of 2007. In line with Partners Group's disciplined cost management, this increase was mainly driven by the growth in the number of employees to 315 as of the end of June, enabled by the strong AuM increase in 2007. This strict approach results in EBITDA of CHF 115.9 and an EBITDA margin of 73% again well above the target of 70%.
Adjusted net profit increased to CHF 110.1 million, with changes in fair value of derivatives arising from insurance contracts adding further profits of CHF 6.6 million, resulting in net profits according to IFRS of CHF 116.7 million.
Partners Group will make certain changes to the organizational structure to reflect the continued development of the company and its activities. Following the substantial growth of the private alternative investment strategies department over the past years, it will be split into two new departments going forward: private capital (private equity and private real estate) and private finance (private debt and private infrastructure). Dr. Stephan Schäli, Partner and currently head of private alternative investment strategies, will continue to take on responsibility for the firm's private equity and private real estate businesses as head of the newly established private capital department. René Biner, Partner and head private debt investment management will become head of the private finance department and will join the Executive Board of Partners Group as of 1 October 2008. Michael Barben, Partner, will head the newly formed private infrastructure unit within the private finance department. Partners Group's activities in the alternative strategies department will encompass absolute return strategies (comprising Partners Group's activities in hedge funds and alternative beta strategies combined with certain private market elements) and listed alternatives (listed private equity, listed infrastructure and listed real estate).
Dr. Marcel Erni, Chief Investment Officer of Partners Group, comments “We currently see many attractive investment opportunities in the alternative asset space. Mezzanine is the sweet spot in Europe, offering transactions with attractive yields, decreased leverage levels and tougher covenants. The secondary market currently shows a record level of opportunities. In the private real estate sector, compelling investment opportunities can be seen in distressed debt. Finally, Asia-Pacific continues to develop strongly based on solid mid- and long-term macroeconomic fundamentals.”
Alfred Gantner, Executive Chairman of Partners Group, adds “We are pleased with the results achieved for the first six months of 2008. In particular, we see the business' resistance to the general negative market trend as confirmation of the confidence our clients place in us, our long-term outlook and the growth potential of alternative asset classes. Our outlook for the second half of the year and 2009 remains positive in terms of both investments and client interest, and we remain well on track to reaching our year-end target of CHF 28-29 billion AuM.”
Partners Group's senior management will hold a press conference to discuss the semi-annual results today at 09.00am CET at the Hotel Widder in Zurich. Dial-in details for the conference call can be obtained using the contact details below.
(in CHF m)
Adj. net profit
Adjusted = excluding changes in fair value of derivatives arising from insurance contracts
About Partners Group
Partners Group is a global alternative asset management firm with over CHF 25 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 300 people, is listed on the SWX Swiss Exchange (symbol: PGHN) with a market capitalization of around CHF 4 billion and majority owned by its 38 Partners & Principals and employees.