Price sensitive ("ad hoc") releases
Baar-Zug, Switzerland; 16 January 2020
- Gross client demand of USD 16.5 billion in 2019
- Total of USD 14.8 billion invested in 2019
- Gross client demand of USD 15-19 billion expected in 2020
- USD becomes new AuM reporting currency
Partners Group, the global private markets investment manager, received USD 16.5 billion/EUR 14.8 billion in new commitments from its global client base across all private markets asset classes in 2019. This demand for programs and mandates brings total assets under management (AuM) to USD 94.1 billion/EUR 83.8 billion as of 31 December 2019 (31 December 2018: USD 83.3 billion) and represents a net growth of 13%.
The breakdown of total AuM as of 31 December 2019 is as follows: USD 45 billion private equity (48%), USD 22 billion private debt (23%), USD 15 billion private real estate (16%), and USD 12 billion private infrastructure (13%).
AuM development in 2019
In 2019, clients across all regions entrusted Partners Group with USD 16.5 billion/EUR 14.8 billion (full-year guidance: USD 14.5-18.0 billion) in new commitments. Among the main programs contributing to fundraising during the period were a range of next generation flagship programs, including direct private equity, diversified global infrastructure, real estate opportunities, multi-asset credit and senior loans. There was also continued strong demand for tailored private markets programs, which include customized mandates and an extensive range of innovative structured fund solutions.
Tail-down effects from mature private markets investment programs and redemptions from structured fund solutions amounted to a total of USD -7.1 billion/EUR -6.4 billion (full-year guidance for tail-downs and redemptions: USD -7.5 to -8.5 billion). These were skewed towards the second half of the year as a number of larger closed-ended programs reached the end of their lifetime. A positive contribution of USD +1.8 billion stemmed mainly from performance- and investment-related effects from a select number of investment programs. The remaining USD -0.4 billion was driven by foreign exchange effects. Overall, this resulted in net AuM growth of USD 10.8 billion during the period.
André Frei, Partner and Co-Chief Executive Officer, states: "We are pleased with the strong demand for our offerings and would like to thank our clients for their continued trust in our global investment capability. A broad range of investors is seeking to further build out their exposure to private markets and we aim to meet this demand via our bespoke solutions. These range from mandates for large institutions, which allow us to steer investment exposure across multiple private markets asset classes in line with clients' longer-term investment horizons, to structured fund solutions for private individuals who are increasingly recognizing the benefits of private markets."
USD 15 billion invested in attractive and resilient businesses and assets in 2019
After a record investment year in 2018, Partners Group invested a total of USD 14.8 billion (2018: USD 19.3 billion) on behalf of its clients across all private markets asset classes in 2019, maintaining its highly disciplined and selective approach to investment.
Partners Group's investment professionals screened around 2,600 potential direct transactions across all private markets asset classes in 2019, investing in 75 of them and registering a decline rate of 97%. USD 10.1 billion (68% of total investment volume) was deployed in direct assets, of which a total of USD 6.3 billion was invested as equity in individual businesses and USD 3.8 billion was invested in corporate debt. To complement its direct assets, the firm invested USD 4.7 billion (32% 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: "Our multi-billion USD investment pipeline allows us to look ahead with confidence. Our global team of industry and sub-sector specialists enables us to build a strong conviction around assets and think about the attractiveness of sub-sectors according to multiple dimensions, including secular growth prospects and consolidation potential. Despite a market environment characterized by elevated valuations, low growth and geopolitical uncertainty, we are convinced that we will be able to continue to invest in a significant opportunity set of attractive assets."
Expected gross client demand for 2020
For 2020, Partners Group expects gross client demand of USD 15-19 billion, together with USD -7.5 to -9.0 billion in tail-down effects from the more mature Partners Group programs and potential redemptions from structured fund solutions. The firm continues to assume the market environment for fundraising will remain benign and expects strong demand across a variety of solutions spanning all private markets asset classes.
Partners Group will align its AuM reporting currency with its investment activity reporting currency by switching to USD. This reflects the anticipated growing importance of USD-denominated assets as a proportion of AuM. Today, USD-denominated AuM already represent 38% of total AuM, with the remainder denominated in a variety of other local currencies.
Conference call today
Partners Group's senior management will hold a conference call today at 9am CET. To register for the call, please click here or use the contact details at the end of this press release.
Key dates 2020
17 March 2020
Annual results and Annual Report as of 31 December 2019; presentation and conference call at the Widder Hotel, Zurich, 9am CET
13 May 2020
Annual General Meeting of shareholders
14 July 2020
AuM announcement as of 30 June 2020
8 September 2020
Interim results and Interim Report as of 30 June 2020; presentation and conference call at the London Stock Exchange, London, 9am BST
 EUR guidance for the full-year was EUR 13-16 billion; in USD, guidance translates into USD 14.5-18.0 billion, rounded to the next 0.5 billion (average EUR/USD FX-rate of 1.12).
 EUR guidance for the full-year was EUR -6.5 to -7.5 billion; in USD, guidance translates into USD -7.5 to -8.5 billion, rounded to the next 0.5 billion (average EUR/USD FX-rate of 1.12).