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Partners Group reports strong H1 2021 financials driven by a significant increase in performance fees

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Partners Group / Key word(s): Half Year Results

07-Sep-2021 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Baar-Zug, Switzerland; 7 September 2021


Summary of key financials H1 2021 (in CHF million)

H1 2020

H1 2021

Revenues1

623

1,130

+81%

Management fees2

567

688

Performance fees

56

442

Personnel expenses

-178

-382

EBIT

390

702

+80%

EBIT margin

62.7%

62.1%

Financial result

-24

51

Taxes

-53

-123

Profit

313

629

+101%


1 Revenues include management fees and performance fees.
2 Management fees include recurring management fees and other revenues, net, and other operating income.

Message from the Chairman and the CEO


Steffen Meister, Executive Chairman of the Board, Partners Group, comments: "In the first half of the year, we took advantage of a supportive exit environment to divest a number of mature companies and real assets on behalf of our clients, including some originally scheduled for 2020 but postponed due to the pandemic. These strong realizations are a testimony to our thematic investing approach and the significant value created in these companies and assets over many years. Alongside sustained client demand for our broad range of private markets offerings, this has led to a strong set of H1 financials."

David Layton, Partner and Chief Executive Officer, adds: "We continue to focus on companies and assets that benefit from compelling transformative trends, and that we can develop into market leaders through entrepreneurial governance and hands-on value creation. As valuations in private markets are still near record highs, underwriting discipline and scenario testing are hugely critical in this environment. The growth of our business would not have been possible without the hard work and dedication of our colleagues, who have shown strength in adversity. We are extremely grateful for their unwavering efforts and looking ahead, we are confident in the strength of our platform and the potential we have for continued future growth."


H1 2021 financials

Total revenues increased by 81% to CHF 1,130 million (H1 2020: CHF 623 million), driven by a significant increase in performance fees and sustained management fee growth.

Total operating costs increased by 84% to CHF 428 million (H1 2020: CHF 232 million), in line with revenues. Operating costs were affected by higher personnel expenses and lower other operating expenses.

EBIT increased by 80% in line with revenues, amounting to CHF 702 million (H1 2020: CHF 390 million). The EBIT margin remained stable at 62.1% (H1 2020: 62.7%).

The financial result amounted to CHF 51 million (H1 2020: CHF -24 million) and was driven by the positive (unrealized) valuation adjustments of Partners Group's private markets investments alongside its clients. The firm's transformational investing strategy facilitated growth in these investment programs and resulted in an average return across all stages and asset classes of 10%. Corporate taxes amounted to CHF -123 million (H1 2020: CHF -53 million).

In summary, the firm's profit increased by 101% and amounted to CHF 629 million (H1 2020: CHF 313 million).

Outlook

Considering the strong results in H1 2021, Partners Group foresees the potential for performance fees to represent 40-45% of total revenues for the full-year 2021, assuming market conditions and the exit environment remain unchanged. This also anticipates the potential for some performance fees originally expected in 2022 to be brought forward as a select number of programs and mandates may meet their hurdle rates earlier than anticipated. For the full-year 2022, performance fees are expected to return within the range of 20-30% of total revenues. Over the mid to long term, the firm continues to expect its performance fee potential to grow in line with AuM.

Partners Group also confirms its full-year 2021 guidance on expected gross client demand of USD 19 to 22 billion, together with around USD -9.5 billion in tail-down effects from the more mature closed-ended investment programs and redemptions from evergreen programs. Fundraising is expected to be balanced across all program types, from customized mandates and the firm's extensive range of evergreen fund solutions to traditional closed-ended programs.

Changes in the Board of Directors

Lisa A. Hook, an independent member of the Board of Directors of Partners Group Holding AG, has stepped back from the Board with effect from 3 September 2021 for personal reasons. She will remain a senior advisor to Partners Group's Investment Oversight Committee, a Board sub-committee that provides advice and support on the firm's investment and investment process-related activities. Joseph P. Landy, also an independent member of the Board of Directors of Partners Group Holding AG, will take over Ms. Hook's Nomination & Compensation Committee responsibilities ad-interim until the next Annual General Meeting of shareholders in May 2022.

Conference call today

Partners Group's senior management will hold a conference call today at 9:00am CEST. To register for the call, please click here or use the contact details at the end of this press release.

The Interim Report as of 30 June 2021 was published today at 7.00am CEST and is available for download at www.partnersgroup.com/financialreports.

Key dates 2022

13 January 2022

Announcement of AuM as of 31 December 2021

22 March 2022

Annual results and Annual Report as of 31 December 2021

29 March 2022

25 May 2022

Publication of Corporate Sustainability Report 2021

Annual General Meeting of shareholders

14 July 2022

Announcement of AuM as of 30 June 2022

30 August 2022

Interim results and Interim Report as of 30 June 2022

About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested over USD 150 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With USD 119 billion in assets under management as of 30 June 2021, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.

Shareholder relations contact
Philip Sauer
Phone: +41 41 784 66 60
Email: philip.sauer@partnersgroup.com

Media relations contact
Jenny Blinch
Phone: +44 207 575 2571
Email: jenny.blinch@partnersgroup.com


End of ad hoc announcement

Language:

English

Company:

Partners Group

Zugerstrasse 57

6341 Baar

Switzerland

Phone:

+41 41 784 60 00

Fax:

+ 41 41 784 60 01

E-mail:

partnersgroup@partnersgroup.com

Internet:

https://www.partnersgroup.com/en/

ISIN:

CH0024608827

Valor:

2460882

Listed:

SIX Swiss Exchange

EQS News ID:

1231606


 

End of Announcement

EQS Group News Service

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