Partners Group,successfully raises global real estate fund
Press release
Baar-Zug, 16 September 2009
The fund has commenced active investment activity and, fueled by the attractive investment environment, has already reached an investment level of close to 40%. In particular, the secondary market offers investment potential due to the scarcity of capital; completed transactions include a secondary investment of eight assets in China. Partners Group's local due diligence team had in-depth knowledge of the portfolio, and the fact that the majority of the assets are operating at or ahead of business plan as well as being highly cash-generating supported the investment decision. In addition, the seller was seeking immediate liquidity and thus prepared to close the transaction quickly. The transaction was completed at a 50% discount to Partners Group's fair market value estimation, and Partners Group expects to achieve a multiple of over 2x and an IRR of over 20% on this investment, while earning a cash on cash yield of over 15% p.a. during the holding period.
Claude Angéloz, Partner and Co-Head Private Real Estate, comments, "We currently see a rapidly increasing number of compelling investment propositions in various markets around the globe. These include opportunities from distressed sellers arising from the market turmoil in developed markets and growth opportunities in emerging markets, where positive GDP growth, low levels of household debt and powerful demographic trends continue to be significant drivers of demand for real estate space. Our ten offices around the world combined with access to the leading regional investment partners ensure we are ideally positioned to take advantage of the diverse opportunities in the global real estate market today and in the coming years."
Among the limited partners participating in the program are corporate and public pension plans, insurance companies, family offices and endowments from around the world.
About Partners Group
Partners Group is a global alternative asset management firm with over CHF 24 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 350 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 3 billion and majority owned by its 37 Partners and all employees.
Investor relations contact:
Dr. Cyrill Wipfli, Partner
Business Strategy & Corporate Development
Phone: +41 41 768 85 71
E-mail: [email protected]
Media relations contact:
Tamara Krebs
Communications
Phone: +41 41 768 85 26
E-mail: [email protected]
Press release
Baar-Zug, 16 September 2009
The fund has commenced active investment activity and, fueled by the attractive investment environment, has already reached an investment level of close to 40%. In particular, the secondary market offers investment potential due to the scarcity of capital; completed transactions include a secondary investment of eight assets in China. Partners Group's local due diligence team had in-depth knowledge of the portfolio, and the fact that the majority of the assets are operating at or ahead of business plan as well as being highly cash-generating supported the investment decision. In addition, the seller was seeking immediate liquidity and thus prepared to close the transaction quickly. The transaction was completed at a 50% discount to Partners Group's fair market value estimation, and Partners Group expects to achieve a multiple of over 2x and an IRR of over 20% on this investment, while earning a cash on cash yield of over 15% p.a. during the holding period.
Claude Angéloz, Partner and Co-Head Private Real Estate, comments, "We currently see a rapidly increasing number of compelling investment propositions in various markets around the globe. These include opportunities from distressed sellers arising from the market turmoil in developed markets and growth opportunities in emerging markets, where positive GDP growth, low levels of household debt and powerful demographic trends continue to be significant drivers of demand for real estate space. Our ten offices around the world combined with access to the leading regional investment partners ensure we are ideally positioned to take advantage of the diverse opportunities in the global real estate market today and in the coming years."
Among the limited partners participating in the program are corporate and public pension plans, insurance companies, family offices and endowments from around the world.
About Partners Group
Partners Group is a global alternative asset management firm with over CHF 24 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 350 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 3 billion and majority owned by its 37 Partners and all employees.
Investor relations contact:
Dr. Cyrill Wipfli, Partner
Business Strategy & Corporate Development
Phone: +41 41 768 85 71
E-mail: [email protected]
Media relations contact:
Tamara Krebs
Communications
Phone: +41 41 768 85 26
E-mail: [email protected]