Partners Group Holding Ag · SIX:PGHN
Partners — H1 2024 Earnings Presentation
20 slides from Partners's earnings presentation, Sep 3, 2024
Slide 1: Interim Results 2024
MPARTNERS . GROUP Baia Interim Results 2024 Built Differently to Build Differently
Slide 2: Our platform delivered solid operational and financial results in H1
2 Our platform delivered solid operational and financial results in H1 USD 11bn Fundraising ▪ Full-year 2024 guidance of USD 20-25 billion confirmed ▪ Variety of new solutions offered for different client types +39% YoY CHF 815m Management fees ▪ Growth broadly in line with average AuM in CHF ▪ Soli
Slide 3: We are a leader in developing innovative, sophisticated private markets client solutions
3 We are a leader in developing innovative, sophisticated private markets client solutions AuM by client type Private wealth & wealth Number of investment structures managed by Partners Group distribution partners 23% +100 Asset managers, family offices, banks Public pension funds & others $149 & SW
Slide 4: Our clients are globally diversified; 2024 fundraising guidance confirmed
4 Our clients are globally diversified; 2024 fundraising guidance confirmed Current AuM split by region (as of 30 June 2024) Middle East Australia Switzerland 57% Asia 23% 8% South 3% 3% America Germany & Austria $149 billion North America United 2% Kingdom & Ireland 7% Scandinavia Southern France &
Slide 5: The US is an important growth driver
5 The US is an important growth driver Partners Group's North American AuM (in USD billion) 35 AuM: private wealth represents 55% of Partners Group's North American AuM; strong growth over the last 5 years 16 Institutional investors H1 inflow: 34% of total inflows (vs. 23% of AuM) as well as 52% of
Slide 6: H1 performance fees impacted by low distribution activity; direct equity exits remained slow
6 H1 performance fees impacted by low distribution activity; direct equity exits remained slow Contribution by investment program & mandate (as of 30 June 2024) Rest (>60) ▪ More than 80 programs and mandates contributed to 12% Top 1 H1 performance fees 22% ▪ H1 realization activity up 69% year-on-y
Slide 7: Most recent exit example: Aavas Financiers
7 Most recent exit example: Aavas Financiers India Market leader in affordable housing finance focusing on Private equity unbanked and informal income segments of homebuyers in India Thematic conviction ▪ Democratization of financial services ▪ Demographic shifts and population growth in India ▪ Exp
Slide 8: Performance fee potential is expected to follow AuM growth over time
8 Performance fee potential is expected to follow AuM growth over time $56 billion Direct investments AuM1 (in USD bn) Performance fees (in CHF m) 147 149 Past investments 1500 135 translate 140 into 2015- 127 future performance Direct2 vs. portfolio $10 billion 2019 fee potential Direct investments
Slide 9: Our infrastructure platform entered into its performance fee-generation phase
9 Our infrastructure platform entered into its performance fee-generation phase, driven by a maturing portfolio and strong investment performance Infrastructure AuM development (in USD billion) 2008 2011 Infrastructure 1st infrastructure 26 becomes own direct strategy asset class closed 21 16 2023 2
Slide 10: Investment activity across the platform has meaningfully increased as we entered the second half
10 Investment activity across the platform has meaningfully increased as we entered the second half of the year Total investments 1 1 H1: $9bn infrastructure private equity closed H2: +$6bn a market-leading provider of sustainable decentralized partner to pharma companies for the discovery, prod., a
Slide 11: H1 2024 financials overview
11 H1 2024 financials overview AuM Management fees Performance fees EBIT margin EBIT (in USD bn) (in CHF m) (in CHF m) (in %) (in CHF m) +5% +4% -39% +0.8%-points -6% 149 815 142 786 Avg. +2% 129 AuM in 644 126 605 CHF 61.2% 62.0% 265 161 25% in % of 17% revenues H1 2023 H1 2024 H1 2023 H1 2024 H1 2
Slide 12: Revenues underpinned by stable contractually recurring management fees
12 Revenues underpinned by stable contractually recurring management fees Revenues1 (in CHF m) 1'051 977 Revenues ▪ Revenues: growth impacted by performance fees; FX adversely affected 265 161 Performance fees revenue growth by 2% +4% 85 Other revenues & ▪ Management fees: recurring in nature; 45 ot
Slide 13: Management fee margin remains solid
13 Management fee margin remains solid Revenue margin1 2.41% Performance fees Management fees2 1.89% 1.82% 46% 1.74% 1.71% 30% 29% 1.51% 1.51% 1.56% 1.52% Performance 1.36% 1.39% 19% 1.35% 1.36% 1.33% 1.39% 1.38% 24% 17% fees as % of 1.26% 1.25% 1.26% 1.23% 30% 19% 14% total revenues average 1.30% 1
Slide 14: Performance fee outlook reconfirmed
14 Performance fee outlook reconfirmed Performance fees as % of total revenues ▪ H1 2024: direct private equity assets and 25-40% private credit drove performance fees; Performance fees1 impacted by low transaction volumes 20-30% ▪ 2024: expected to be at around 20% amid 17% more muted market activi
Slide 15: Total operating costs impacted by performance fee-funded expenses
15 Total operating costs impacted by performance fee-funded expenses From revenues to EBIT (in CHF m) We continue to invest into our future H1 2024 H1 2023 growth at a ~60% EBIT margin Revenues1 977 -7% 1'051 ▪ Total costs: decrease mainly driven by lower Total operating costs, of variable perf. fee
Slide 16: Revenues and costs affected by EUR or USD movements against the CHF
16 Revenues and costs affected by EUR or USD movements against the CHF Currency exposure H1 2024 AuM ≈ Management fees1 Total costs2 Others GBP 6% ▪ Appreciation of CHF against the 5% USD and EUR negatively Other EUR impacted revenues by 2% EUR 5% 4% 44% SGD 9% CHF ▪ Year-over-year foreign exchange
Slide 17: Strong financials, balance sheet, and liquidity
17 Strong financials, balance sheet, and liquidity From EBIT to profit Balance sheet (in CHF m) (as of 30 June 2024) H1 2024 H1 2023 Revenues1, of which 977 -7% 1'051 2.3 45% Management fees2 815 +4% 786 CHF billion return on Performance fees 161 -39% 265 available liquidity4 equity5 Total operating
Slide 18: Q&A
Q&A PARTNERS GROUP Ell
Slide 19: Contacts
19 Contacts Zugerstrasse 57 Philip Sauer Head Corporate Development T +41 41 784 66 60 6341 Baar-Zug philip.sauer@partnersgroup.com Switzerland T +41 41 784 60 00 shareholders@partnersgroup.com www.partnersgroup.com Danica Ruso Corporate Development T +41 41 784 67 67 danica.ruso@partnersgroup.com
Slide 20: Disclaimer
20 Disclaimer This presentation 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 otherwise credited, have been derived from Partners Group. The inf
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