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Partners Group / Key word(s): Half Year Results
Baar-Zug, Switzerland; 7 September 2021
Message from the Chairman and the CEO
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."
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).
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
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