Price sensitive ("ad hoc") releases
- Revenues for the financial year 2008 increased 6% to CHF 328 million (2007: CHF 311 million), while recurring revenues were 19% higher at CHF 289 million (2007: CHF 243 million).
- EBITDA increased by 4% to CHF 240 million (2007: CHF 232 million) and recurring EBITDA was up 23% to CHF 201 million (2007: CHF 163 million).
- Adjusted net profit1 amounted to CHF 213 million, with a slight decrease of 6% (2007: CHF 228 million) due to a lower financial result.
- Partners Group will propose an unchanged dividend of CHF 4.25 per share, representing a dividend yield of 7.6% (closing price as of 13 March 2009).
- CHF 6.2 billion assets were raised mainly in the core private markets business in 2008. This result was offset by CHF 4 billion in redemptions and performance effects predominantly in the public markets business as well as CHF 2.2 billion in foreign exchange impact.
- Revenues stem predominantly from multi-year management contracts with fixed recurring fees and therefore a stable development of financial figures is expected for 2009 despite the very difficult market environment.
Baar-Zug, 16 March 2009
Partners Group, the Switzerland-based alternative asset manager, achieved a solid result for the financial year 2008, a reflection of the sustainability of the business despite the current situation on financial markets.
Net revenues for 2008 increased to CHF 328 million, 6% above the CHF 311 million in 2007. The net revenue margin of 1.34% (2007: 1.48%, of which 0.13% stemmed from performance fees) remains well within the target range of 1.3-1.4% despite the marked decrease in performance fees due to the weak financial markets. Recurring revenues were also up, increasing by 19% to CHF 289 million (2007: 243 million). Stable management fees accounted for 91% of total revenues.
This increase is noticeably stronger than the rise in operating costs by only 11%, evidence of Partners Group's continued stringent cost management. As a result, recurring EBITDA increased by 23% to CHF 201 million compared to 2007 (CHF 163 million), with total EBITDA up 4% to CHF 240 million (2007: CHF 232 million). The EBITDA margin stayed stable at 73.1% for 2008 (2007: 74.5%) and above its target (>70%) despite the lower performance fees.
Adjusted net profit was remarkably stable given the market environment although impacted by write-downs of CHF 30 million on financial assets held on Partners Group's balance sheet. This effect was partially offset by hedging gains on revenues and interest earned, including that on cash positions of CHF 187 million as of 31 December 2008, resulting in a total net negative effect from financial result of CHF 10 million. In total, adjusted net profit1 for the financial year 2008 decreased by 6% to CHF 213 million (2007: CHF 228 million).
Partners Group will propose an unchanged dividend of CHF 4.25 per share to the annual general meeting of shareholders on 30 April 2009. This represents a dividend yield of 7.6% at the closing share price as of 13 March 2009.
Alfred Gantner, co-founder and Executive Chairman, comments, “We are pleased with the result we are able to present to shareholders today, proving the stability of our business. Revenues stem predominantly from multi-year management contracts with fixed recurring fees. Our result is less dependent on variable components such as performance fees and therefore our firm expects a stable development of financial figures in 2009 despite the very difficult market environment. The stability of our firm and of the team sets us apart from many competitors and will be a key advantage in securing new business. There is a flight to stability and quality in the selection of asset managers and therefore we expect to see a consolidation in the private market sector. Our partnership is convinced that Partners Group will benefit from the structural changes in the industry.”
Dr. Marcel Erni, co-founder and Chief Investment Officer, adds, “The market situation is naturally not without effect on the underlying companies in our portfolios, and it now remains imperative to continue to focus on existing portfolio companies and to spend time ensuring the large majority weather the downturn securely. However, we have always diversified portfolios across vintage years, sectors and regions and therefore total exposure to the large buyout investments completed in 2006/2007 only amounts to 7% of total AuM. We can now additionally take advantage of the current opportunities in buying high quality assets from distressed sellers, as our clients continue to understand the importance of investing through the cycle and are ready to seize the possibilities currently arising. Partners Group continues to see solid demand for our products and currently still has over CHF 7 billion in uninvested capital. We do not foresee a scenario in which our institutional clients will not honor their legal commitments towards other limited partners and Partners Group as the general partner.”
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 call can be obtained using the contact details below.
The 2008 annual report of the company was published today at 7.00 am CET and is available for download here.
(in CHF m)
Adjusted net profit1
1 Adjusted = excluding changes in fair value of derivatives arising from insurance contracts, amounting to CHF +13 million in 2006, CHF +28 million in 2007 and CHF -43 million in 2008, resulting in an IFRS net profit of CHF 154 million in 2006, CHF 255 million in 2007 and CHF 171 million in 2008.