Price sensitive ("ad hoc") releases
Baar-Zug, 4 September 2012
- Sustained client demand resulted in asset inflows of EUR 2.4 billion in H1 2012, representing an annualized AuM increase of 20%
- Expected demand of EUR 4-5 billion for the full year 2012 reconfirmed
- Revenues rose by 20% to CHF 209 million (H1 2011: CHF 174 million), with the revenue margin at 1.35% (H1 2011: 1.26%)
- EBITDA was up 19% to CHF 127 million (H1 2011: CHF 106 million) while the EBITDA margin was sustained at 61%
- Adjusted net profit increased to CHF 125 million (H1 2011: CHF 113 million), with a lower financial result of CHF 15 million (H1 2011: CHF 22 million)
- Strong liquidity position of CHF 229 million and a bank debt free balance sheet
In the first half of 2012, Partners Group saw sustained client demand across its investment platform, resulting in EUR 2.4 billion in asset inflows. The firm confirms it expects client demand for the full year to amount to EUR 4-5 billion as communicated in January 2012. Due to both the growth in assets under management (AuM) as well as the higher revenue margin of 1.35% (H1 2011: 1.26%), revenues increased by 20% to CHF 209 million in H1 2012 (H1 2011: CHF 174 million). Revenues primarily stem from stable, recurring management fees.
As a direct consequence of revenue growth, EBITDA, the firm's key measure of operational strength, was 19% higher at CHF 127 million (H1 2011: CHF 106 million). Despite the further expansion of the firm's investment platform, the EBITDA margin remained at 61% (H1 2011: 61%) due to Partners Group's stringent cost management principles successfully countering the renewed negative foreign exchange impact from a weaker euro.
The consistent growth of the firm's business has further manifested itself in the adjusted net profit, which was up 10% to CHF 125 million (H1 2011: CHF 113 million). The financial result, comprising net gains on own investments, net interest income and net foreign exchange results, was at a lower level than the previous period and amounted to CHF 15 million (H1 2011: CHF 22 million), with more than 40% of the difference between the two periods from lower foreign exchange results. The firm has a robust and bank debt free balance sheet with a strong liquidity position of CHF 229 million (including working capital facilities to products provided by the group) and equity of CHF 530 million as of 30 June 2012. The adjusted return on equity during the period amounted to 49%.
Alfred Gantner, Co-founder and Executive Chairman, comments, "Since 2000, we have achieved a net outperformance over the MSCI World of over 9% p.a. and have further created significantly more value over the same time horizon as the average in our industry, based on cash flows observed over the last decade. This historical outperformance of private markets over public markets, especially in challenging times, constitutes a strong argument for the increased inclusion of these assets in a portfolio. In fact, it is questionable how much short-term liquidity is really required for a pension fund or whether the better option is not to accept reduced liquidity in order to capture more of the available outperformance. Particularly in this stagnating environment, the advantages of proactive ownership are pivotal."
Steffen Meister, Partner and Chief Executive Officer, adds, "We currently see client allocations increasing in all regions and across private markets segments and demand for our products has again been dominated by public and private pension funds, accounting for more than three quarters of the total in the first half of the year. With overall client interest well-diversified across the globe, a particularly high level of interest is seen out of North America where investors look to expand their investment activities via a ‘glocal' approach such as ours, combining a global presence with regional specialists to better access local markets. With the general fundraising environment still at subdued 2011 levels, we were again pleased to be among the few private markets managers to attract significant interest while others failed to see demand."
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 interim report as of 30 June 2012 was published today at 7.00 am CET and is available for download at www.partnersgroup.com/financialreports.
(in CHF m)
Adjusted net profit1
1 Adjusted for certain non-cash items relating to our capital-protected product Pearl
Key dates 2013
16 January 2013
Announcement of AuM as of 31 December 2012
19 March 2013
Annual results & annual report 2012
2 May 2013
Annual general meeting
11 July 2013
Announcement of AuM as of 30 June 2013
10 September 2013
Interim results & interim report as of 30 June 2013