Partners Group reports strong annual results for 2010 with adjusted net profit of CHF 302 million
Press release
Baar-Zug, 14 March 2011
The firm saw increased revenues overall, which rose by 16% to CHF 376 million (2009: CHF 325 million). Private debt, private real estate and private infrastructure all generated substantially higher revenues while, due to the weakening of the Euro vs. the Swiss franc, revenues from the private equity business increased more modestly. The recurring net revenue margin stayed stable at 1.20% (2009: 1.18%), but was however again skewed to the positive due to fund closings late in the year and foreign exchange effects at year end.
EBITDA increased by 10% to CHF 250 million (2009: CHF 227 million). This more limited increase as well as the decrease in the EBITDA margin to 66% (2009: 70%) is largely a consequence of the appreciation of the Swiss franc against the Euro and US Dollar in 2010.
The increase in adjusted net profit by 44% to CHF 302 million (2009: CHF 210 million) is to some extent due to a strong financial result of CHF 78 million. The result stemmed in particular from extraordinary gains on foreign exchange hedges due to a weakening of the Euro vs. the Swiss franc in 2010. The firm does not expect to see this significant hedging result repeated in 2011.
To better serve the needs of its global clientele, while sticking to its principle of aligning the development of the size of its team with its business, the firm has continued to grow its global investment platform and increased headcount to over 450 employees. It is anticipated that a further expansion will bring the size of the global Partners Group team to over 500 employees by around mid-year 2011.
Partners Group anticipates sustained interest from clients around the world, both from existing as well as from new clients exploring the potential of the private markets asset class for the first time. The firm confirms expected client demand for new investment programs of EUR 4-5 billion in 2011.
Following the positive development of the firm in the financial year as well as its optimistic outlook, the board of directors decided to propose a dividend of CHF 5.00 per share (2009: CHF 4.50) to shareholders at the annual general meeting of 5 May 2011. This corresponds to a dividend yield of 3% (as of closing share price on 11 March 2011).
On an organizational level, André Frei, Chief Risk Officer and Co-Head Product Operations, will join the executive board as of 1 April 2011, replacing the second Co-Head Product Operations, Kurt Birchler. In addition, the Portfolio & Risk Management team will strengthen their focus on their core responsibilities, thus Dr. Michael Studer, previously Head Investment Risk Management, will take over the role of Head Portfolio & Risk Management from Tilman Trommsdorff, who will no longer be a member of the Executive Board as of 31 March 2011, as the Portfolio & Risk Management team will report directly to the Executive Office.
Steffen Meister, Chief Executive Officer, comments, "The developments seen in 2010 have again confirmed the importance of possessing a 'glocal' platform. This approach ensures investment opportunities can be identified in all the major markets around the globe, both established as well as emerging, and secures proximity to existing and new investors. We currently observe a transition in private markets, which is bringing forth both a handful of large, established global investment managers as well as a larger number of smaller local niche players while the consolidation activity has increased. We have further concentrated on firmly establishing our globally leading integrated private markets platform, with now over 450 employees and 14 offices around the world, and the continued growth of our firm will to a good part be driven by organic growth from within. However, as we have done previously, we will in 2011/2012 additionally consider adding external teams to further strengthen our investment platform provided they possess the same long-term philosophy and core values as our firm."
Urs Wietlisbach, Co-founder and Executive Vice Chairman, adds, "We expect client interest to be focused on a number of attractive key investment themes in 2011. In private equity, Asia and emerging markets in general continue to attract interest as well as investments in secondaries and small and mid-cap directs on a global scale. The private real estate segment offers opportunities in global non-core programs and in recapitalizations while the focus in private infrastructure is on brownfield investments in industrial countries and on rehabilitative/greenfield projects in emerging markets. Finally, the private debt markets in developed regions still offer attractive risk/return profiles in the small and mid-cap space."
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 2010 annual report of the company was published today at 7.00 am CET and is available for download at www.partnersgroup.com/financialreports.
Key figures
(in CHF m) | 2009 | 2010 |
Net revenues | 325 | 376 |
EBITDA | 227 | 250 |
| Net profit | 205 | 297 |
Adjusted net profit1 | 210 | 302 |
1 Adjusted for certain non-cash items relating to our capital-protected product Pearl
Key dates 2011
5 May 2011 | Annual general meeting |
13 July 2011 | Pre-close announcement AuM as of 30 June 2011 |
6 September 2011 | Semi-annual results as of 30 June 2011 |
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. The firm manages a broad range of funds and customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 450 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of CHF 4.5 billion with a clear majority owned by its 36 Partners and all employees.
Investor relations contact:
Philip Sauer
Phone: +41 41 768 86 60
E-mail: [email protected]
Media relations contact:
Dr. Anna Hollmann
Phone: +41 41 768 83 72
E-mail: [email protected]
www.partnersgroup.com
Press release
Baar-Zug, 14 March 2011
The firm saw increased revenues overall, which rose by 16% to CHF 376 million (2009: CHF 325 million). Private debt, private real estate and private infrastructure all generated substantially higher revenues while, due to the weakening of the Euro vs. the Swiss franc, revenues from the private equity business increased more modestly. The recurring net revenue margin stayed stable at 1.20% (2009: 1.18%), but was however again skewed to the positive due to fund closings late in the year and foreign exchange effects at year end.
EBITDA increased by 10% to CHF 250 million (2009: CHF 227 million). This more limited increase as well as the decrease in the EBITDA margin to 66% (2009: 70%) is largely a consequence of the appreciation of the Swiss franc against the Euro and US Dollar in 2010.
The increase in adjusted net profit by 44% to CHF 302 million (2009: CHF 210 million) is to some extent due to a strong financial result of CHF 78 million. The result stemmed in particular from extraordinary gains on foreign exchange hedges due to a weakening of the Euro vs. the Swiss franc in 2010. The firm does not expect to see this significant hedging result repeated in 2011.
To better serve the needs of its global clientele, while sticking to its principle of aligning the development of the size of its team with its business, the firm has continued to grow its global investment platform and increased headcount to over 450 employees. It is anticipated that a further expansion will bring the size of the global Partners Group team to over 500 employees by around mid-year 2011.
Partners Group anticipates sustained interest from clients around the world, both from existing as well as from new clients exploring the potential of the private markets asset class for the first time. The firm confirms expected client demand for new investment programs of EUR 4-5 billion in 2011.
Following the positive development of the firm in the financial year as well as its optimistic outlook, the board of directors decided to propose a dividend of CHF 5.00 per share (2009: CHF 4.50) to shareholders at the annual general meeting of 5 May 2011. This corresponds to a dividend yield of 3% (as of closing share price on 11 March 2011).
On an organizational level, André Frei, Chief Risk Officer and Co-Head Product Operations, will join the executive board as of 1 April 2011, replacing the second Co-Head Product Operations, Kurt Birchler. In addition, the Portfolio & Risk Management team will strengthen their focus on their core responsibilities, thus Dr. Michael Studer, previously Head Investment Risk Management, will take over the role of Head Portfolio & Risk Management from Tilman Trommsdorff, who will no longer be a member of the Executive Board as of 31 March 2011, as the Portfolio & Risk Management team will report directly to the Executive Office.
Steffen Meister, Chief Executive Officer, comments, "The developments seen in 2010 have again confirmed the importance of possessing a 'glocal' platform. This approach ensures investment opportunities can be identified in all the major markets around the globe, both established as well as emerging, and secures proximity to existing and new investors. We currently observe a transition in private markets, which is bringing forth both a handful of large, established global investment managers as well as a larger number of smaller local niche players while the consolidation activity has increased. We have further concentrated on firmly establishing our globally leading integrated private markets platform, with now over 450 employees and 14 offices around the world, and the continued growth of our firm will to a good part be driven by organic growth from within. However, as we have done previously, we will in 2011/2012 additionally consider adding external teams to further strengthen our investment platform provided they possess the same long-term philosophy and core values as our firm."
Urs Wietlisbach, Co-founder and Executive Vice Chairman, adds, "We expect client interest to be focused on a number of attractive key investment themes in 2011. In private equity, Asia and emerging markets in general continue to attract interest as well as investments in secondaries and small and mid-cap directs on a global scale. The private real estate segment offers opportunities in global non-core programs and in recapitalizations while the focus in private infrastructure is on brownfield investments in industrial countries and on rehabilitative/greenfield projects in emerging markets. Finally, the private debt markets in developed regions still offer attractive risk/return profiles in the small and mid-cap space."
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 2010 annual report of the company was published today at 7.00 am CET and is available for download at www.partnersgroup.com/financialreports.
Key figures
(in CHF m) | 2009 | 2010 |
Net revenues | 325 | 376 |
EBITDA | 227 | 250 |
| Net profit | 205 | 297 |
Adjusted net profit1 | 210 | 302 |
1 Adjusted for certain non-cash items relating to our capital-protected product Pearl
Key dates 2011
5 May 2011 | Annual general meeting |
13 July 2011 | Pre-close announcement AuM as of 30 June 2011 |
6 September 2011 | Semi-annual results as of 30 June 2011 |
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. The firm manages a broad range of funds and customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 450 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of CHF 4.5 billion with a clear majority owned by its 36 Partners and all employees.
Investor relations contact:
Philip Sauer
Phone: +41 41 768 86 60
E-mail: [email protected]
Media relations contact:
Dr. Anna Hollmann
Phone: +41 41 768 83 72
E-mail: [email protected]
www.partnersgroup.com