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Partners Group’s Steady Performance Amid Currency Challenges

  • By The Swiss Times
  • 19 March 2024

Partners Group reports 8% AuM growth with stable CHF 1 billion profit, navigating through currency fluctuations. Expansion into private market royalties eyed.

Partners Group’s Steady Performance Amid Currency Challenges
Keystone/OLIVIER MATTHYS

Partners Group, a prominent private markets firm based in Baar-Zug, Switzerland, reported an 8% growth in its assets under management (AuM) in USD terms according to their press release.

Despite the growth in AuM, the firm’s profit remained stable at CHF 1 billion, a situation influenced by foreign exchange effects, particularly the strengthening of the Swiss Franc against major currencies like the USD and EUR.

This currency fluctuation had a negative impact on revenue growth, which saw a modest increase of 4% to reach CHF 1.945 billion.

The firm has experienced a decrease in management fees by 2%, which totalled CHF 1.575 million. This decline was attributed to foreign exchange effects and a drop in late management fees. However, performance fees, which are additional charges based on the fund’s success, saw a significant increase of 37%, amounting to CHF 369 million, and accounted for 19% of total revenues.

Operating costs rose slightly by 2%, driven by an increase in performance fee-related personnel expenses. The EBIT (Earnings Before Interest and Taxes) margin improved to 61.3%, with EBIT reaching CHF 1.193 million.

Looking ahead, Partners Group remains optimistic, confirming guidance for expected gross client demand of USD 20-25 billion in 2024.

They also plan to expand their investment offerings to include private market royalties as a new asset class, covering intellectual property assets in various sectors.

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