Partners Group Holding AG · SIX:PGHN
Partners — Corporate Update (January 2024)
24 slides from Partners's corporate update, Jan 11, 2024
Slide 1: Business update 2023 & outlook 2024
11 January 2024 Business update 2023 & outlook 2024 David Layton, CEO | Sarah Brewer, Global Co-Head Client Solutions | Philip Sauer, Head Corporate Development For Institutional Use Only – Not for Public Distribution
Slide 2: Table of contents
BUSINESS UPDATE 2023 & OUTLOOK 2024 2 Table of contents 1 Business update 2023 2 AuM development 2023 3 AuM outlook 2024
Slide 3: Solid 2023 lays groundwork for next growth cycle
BUSINESS UPDATE 2023 3 Solid 2023 lays groundwork for next growth cycle Fundraising Investments Realizations Fundraising 2024 USD 18 billion USD 13 billion USD 12 billion USD 20-25 billion • Client demand • Investment activity • Realizations • Increase in guidance based +27% in H2 vs. H1 +22% in H2
Slide 4: More activity expected in 2024 following low transaction volumes in 2023
BUSINESS UPDATE 2023 4 More activity expected in 2024 following low transaction volumes in 2023 Global private equity buyout transactions1 Signals of improving transaction count by quarter volumes in 2024 600 550 500 Accessibility to financing 450 Transaction Count 400 350 All Quarter Average Recali
Slide 5: 2023 buyout transactions cleared at lower EV/EBITDA multiples
BUSINESS UPDATE 2023 5 2023 buyout transactions cleared at lower EV/EBITDA multiples Development of industry buyout EV/EBITDA multiples1 in year of transaction 13.2x • Among many factors, bid offer spreads contributed to the 12.4x 12.8x Debt fragile transaction environment 10.6x 10.9x 11.2x 11.2x 19
Slide 6: Capital formation in private markets is less volatile than in public markets
BUSINESS UPDATE 2023 6 Capital formation in private markets is less volatile than in public markets Global private markets vs. public markets capital formation since 2010 1'400 1'200 Private market capital formation1 1'000 Volume (USD billion) 800 600 400 Public market capital formation2 200 2010 20
Slide 7: USD 13 billion invested thematically into investment opportunities
BUSINESS UPDATE 2023 7 USD 13 billion invested thematically into investment opportunities Investments1 (in USD billion) Portfolio assets (Secondary, primary, and liquid loan investments) 40% Debt • H2 investment activity +22% vs. H1 as 19% environment gradually improves • Well diversified investment
Slide 8: Transformational investing remains key
BUSINESS UPDATE 2023 8 Transformational investing remains key Thematic sourcing identifies winning businesses in growing sectors Global provider of mission-critical Leading North American supplier Global renewables asset German biogas and European manufacturer inspection services for energy infra of
Slide 9: Exit market remained cautious throughout 2023
BUSINESS UPDATE 2023 9 Exit market remained cautious throughout 2023 Portfolio realizations (in USD billion) Portfolio assets (Secondary, primary, and liquid loan investments) 35% • H2 exit activity +12% vs. H1, lower than anticipated number of divestments in H2 Debt Debt 34% • Some realizations pos
Slide 10: Demand for stable assets in growing sectors persists
BUSINESS UPDATE 2023 10 Demand for stable assets in growing sectors persists Private infrastructure Private real estate Private equity Largest Australian Multipurpose office Global provider of cloud software wind platform building in Tokyo solutions for the public sector CWP Renewables, Australia Ta
Slide 11: Table of contents
BUSINESS UPDATE 2023 & OUTLOOK 2024 11 Table of contents 1 Business update 2023 2 AuM development 2023 3 AuM outlook 2024
Slide 12: Sustainable AuM growth across cycles
AUM DEVELOPMENT 2023 12 Sustainable AuM growth across cycles Total assets under management1 (in USD billion) 147 76bn 29bn Private Private equity debt 43 17bn 25bn 11 Private Private real estate infrastructure 2018 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2019 2020 2021 2022 2023
Slide 13: Diversified and differentiated offering drives fundraising
AUM DEVELOPMENT 2023 13 Diversified and differentiated offering drives fundraising Assets raised in 2023 13 Traditional client programs • Mandates: +60% in H2 vs. H1 28% Record number of mandates raised in 20231; these will build the base for future AuM growth; 42% of mandates raised are multi-asset
Slide 14: Client demand for bespoke solutions drove outsized AuM growth over last 10 years
AUM DEVELOPMENT 2023 14 Client demand for bespoke solutions drove outsized AuM growth over last 10 years Bespoke solutions Traditional strategies Mandates USD USD USD 2013 10 billion 7 billion 27 billion Evergreens 6x 6x 2x 19% p.a. 20% p.a. 6% p.a. USD USD USD 2023 56 billion 44 billion 46 billion
Slide 15: An average mandate client today has tripled their initial investment size
AUM DEVELOPMENT 2023 15 An average mandate client today has tripled1 their initial investment size since the start of the relationship Illustrative example of AuM development of evergreen mandates Reported New target NAV AuM Client increases target exposure • Mandate clients are long-term strategic
Slide 16: Mandates allow for flexible asset allocation across private markets
AUM DEVELOPMENT 2023 16 Mandates allow for flexible asset allocation across private markets Example of one client's existing evergreen mandate Evolution of a client's portfolio NAV and asset allocation1 USD 1.5bn Infrastructure PE directs PE secondaries 2023 asset allocation2 PE primaries Asset Dire
Slide 17: Evergreens: 20+ year track record of providing leading solutions
AUM DEVELOPMENT 2023 17 Evergreens: 20+ year track record of providing leading solutions across market cycles Selection Total of under assets evergreen funds by strategy, management initiation, development (in USD and billion)size 1 Evergreen AuM (USD billion) 44 1940 Act Global value Multi-asset 37
Slide 18: Sustained AuM growth continues in 2023
AUM DEVELOPMENT 2023 18 Sustained AuM growth continues in 2023 Total assets under management development (in USD billion) -12.7 +18.2 Tail-downs: -8.2 +6.0 FX +2.9 146.9 = EUR 133.0 bn = CHF 123.6 bn 135.4 Redemptions: -4.5 Other +3.1 Mainly formula-based Equals 10% of the Mainly EUR Performance on
Slide 19: AuM development by asset class
AUM DEVELOPMENT 2023 19 AuM development by asset class Assets under management development in 2023 (in USD billion) • Private equity: robust fundraising throughout the year, primarily supported by mandates and evergreens • Private debt: demand for syndicated loans as well as direct lending solutions
Slide 20: Table of contents
BUSINESS UPDATE 2023 & OUTLOOK 2024 20 Table of contents 1 Business update 2023 2 AuM development 2023 3 AuM outlook 2024
Slide 21: Outlook for 2024
AUM OUTLOOK 2024 21 Outlook for 2024 AuM, client demand and other effects (in USD billion) 2024 guidance 20 to 25 • Guidance based on strong client pipeline and driven by differentiated offerings across all Client asset classes 18.2 demand • Client demand expected to strengthen 147 throughout 2024;
Slide 22: Business update 2023 & outlook 2024 Q&A
11 January 2024 Business update 2023 & outlook 2024 David Layton, CEO | Sarah Brewer, Global Co-Head Client Solutions | Philip Sauer, Head Corporate Development Q&A For Institutional Use Only – Not for Public Distribution
Slide 23: Contacts
23 Contacts Shareholder relations contact: Zugerstrasse 57 Philip Sauer 6341 Baar-Zug T +41 41 784 66 60 Switzerland philip.sauer@partnersgroup.com T +41 41 784 60 00 shareholders@partnersgroup.com Media relations contact: Jenny Blinch www.partnersgroup.com T +44 207 575 25 71 jenny.blinch@partnersg
Slide 24: Disclaimer
IMPORTANT NOTICE 24 Disclaimer This presentation is strictly confidential to the recipient and has been prepared by Partners Group Holding AG (the "Company") solely for information purposes and use at the presentation to the respective recipient ("Presentation"). All sources, which have not been oth
Partners Group Holding — Corporate Update (January 2024) on 6ix