Price sensitive ("ad hoc") releases
Baar-Zug, Switzerland; 14 January 2021
- Client demand of USD 16 billion in 2020
- Total AuM stands at USD 109 billion as of 31 December 2020
- Total of USD 9 billion invested across private markets asset classes in 2020
- Significant pipeline of investment opportunities
- Expected gross client demand of USD 16 to 20 billion for 2021
Partners Group, the global private markets investment manager, received USD 16.0 billion in new commitments from its global client base in the twelve-month period ending on 31 December 2020 (2019: USD 16.5 billion). The firm's total AuM increased to USD 109.1 billion as of 31 December 2020 (31 December 2019: USD 94.1 billion), representing net underlying AuM growth of 11%, excluding foreign exchange effects (including foreign exchange effects: 16%).
Partners Group's investment activity slowed over the same period due to the market disruptions triggered by COVID-19 and the firm invested a total of USD 8.6 billion (2019: USD 14.8 billion) on behalf of its clients across all private markets asset classes, with the majority of these investments undertaken in Q1 and Q4. Going into 2021, the firm has a robust investment pipeline.
AuM development in 2020
Partners Group received USD 16.0 billion (full-year guidance: USD 12 to 15 billion) in new commitments across all private markets asset classes and program types in the twelve-month period ending 31 December 2020. Forty-two percent of total inflows stemmed from traditional closed-ended private markets programs, and 58% of client demand derived from bespoke single- and multi-asset class private markets solutions, including mandates and evergreen programs.
Tail-down effects from mature private markets investment programs amounted to USD -6.2 billion and redemptions from evergreen programs to USD -2.0 billion (full-year guidance for tail-downs and redemptions: USD -7.5 to -9.0 billion). Despite COVID-19, inflows to evergreen programs have exceeded redemptions by USD 1.7 billion, making them a net contributor to AuM growth.
Although the firm's private markets portfolio experienced some degree of volatility in the first half of 2020, its investment strategy provided stability and facilitated a swift return to growth in the second half of the year. As a result, performance-related effects from a select number of investment programs generated a positive contribution of USD 2.2 billion to AuM. Foreign exchange effects positively impacted underlying AuM growth by USD 4.9 billion, in particular due to the strengthening of the Euro against the US Dollar. Overall, this resulted in net AuM growth of USD 15.0 billion during the period and a growth rate of 16% year on year.
The breakdown of total AuM as of 31 December 2020 is as follows: USD 52 billion private equity (48%), USD 25 billion private debt (23%), USD 17 billion private real estate (15%), and USD 16 billion private infrastructure (14%).
USD 9 billion invested in 2020
Partners Group invested a total of USD 8.6 billion (2019: USD 14.8 billion) on behalf of its clients across all private markets asset classes in 2020. The firm deployed USD 5.7 billion (67% of total investment volume) in direct assets, of which a total of USD 3.7 billion was invested as equity in individual businesses and real assets and USD 2.1 billion was invested in corporate debt. To complement its direct asset investments, the firm invested USD 2.8 billion (33% of total investment volume) in portfolio assets. These portfolio assets include secondary investments in globally diversified private markets portfolios and select primary commitments to other private markets managers.
David Layton, Partner and Co-Chief Executive Officer, comments: "We believe both the short-term and longer-term outlook for our current investment portfolio continues to be very strong. Although the economic environment remains uncertain in 2021, we continue to focus on our transformational investing strategy by developing growing companies in sectors that benefit from structural change. Transactions picked up pace as markets stabilized in Q4 2020 and we have built a significant investment pipeline going into 2021."
Guidance on gross client demand for full-year 2021
For 2021, Partners Group expects gross client demand of USD 16 to 20 billion, together with around USD -9.5 billion in tail-down effects from the more mature closed-ended investment programs and redemptions from evergreen programs. Fundraising is expected to be balanced across all program types, from customized mandates and the firm's extensive range of evergreen fund solutions to its traditional closed-ended programs.
André Frei, Partner and Co-Chief Executive Officer, adds: "Looking ahead, we are confident about our growth outlook in the medium to long term as we see sustained demand from investors who want to increase their exposure to private markets. We base our 2021 fundraising outlook on the expectation that current uncertainties around COVID-19 will improve as the year progresses. Irrespective of this, our platform is well-positioned to generate sustainable returns and to be a partner of choice for investors, as our ability to provide bespoke client solutions and service excellence remains a distinguishing factor."
Conference call today
Partners Group's senior management will hold a conference call today at 6:15pm CET. To register for the call, please click here or use the contact details at the end of this press release.
Key dates 2021
16 March 2021
Annual results and Annual Report as of 31 December 2020
12 May 2021
Annual General Meeting of shareholders
15 July 2021
Announcement of AuM as of 30 June 2021
7 September 2021
Interim results and Interim Report as of 30 June 2021