Partners Group Reports Stable Profit of CHF 1 Billion Amidst 8% Growth in AuM and Surging Performance Fees

Partners Group, a global private markets investment manager, announced its annual results for 2023, noting an 8% increase in assets under management (AuM) which translated into a stable profit of CHF 1 billion. The firm was impacted by foreign exchange effects, but it witnessed a significant 37% rise in performance fees, contributing to its overall stable financial performance.

Despite a challenging year for the industry marked by lower levels of distributions since the Great Financial Crisis, Partners Group's total revenues climbed by 4% to CHF 1’945 million. The increase in performance fees to CHF 369 million played a crucial role, highlighting the firm's diversified sources of income. Nevertheless, management fees saw a slight decrease of 2%, primarily due to foreign exchange effects and a dip in late management fees.

The company also reported an improved EBIT margin of 61.3%, with EBIT standing at CHF 1’193 million. Additionally, a dividend increase by 5% to CHF 39.00 per share was proposed, reflecting the firm's confidence in the sustainability of its business growth. Looking forward, Partners Group has reconfirmed its guidance for expected gross client demand of USD 20-25 billion for 2024, pointing to a recovery in market conditions and continued interest in its offerings.

Partners Group further plans to expand its investment strategy to include private markets royalties as a new asset class, anticipating this move to bolster its future growth potential. The firm remains optimistic about its ability to generate performance fees accounting for 20-30% of revenues in the near term and sees possibilities for further increases in the following years.