Partners Group Holding AG · SIX:PGHN
Partners — H1 2020 Earnings Presentation
21 slides from Partners's earnings presentation, Jul 14, 2020
Slide 1: H1 2020 AuM announcement
14 JULY 2020 H1 2020 AuM announcement André Frei, Co-CEO | David Layton, Co-CEO | Philip Sauer, Head Corporate Development Bilge Ogut Private Equity Europe | Manas Tandon Head Private Equity Asia
Slide 2: Table of contents
H1 2020 AUM ANNOUNCEMENT 2 Table of contents 1 Investments & outlook 2 AuM development H1 2020 3 AuM outlook 2020
Slide 3: Mobilization of resources to safeguard portfolio stability in H1 2020
INVESTMENTS & OUTLOOK 3 The mobilization of resources to safeguard portfolio stability in H1 2020… Entrepreneurial governance • Weekly Investment Committee discussions on each asset • Sharing best practices across our portfolio • IVC playbook provided to companies in February Business continuity Fin
Slide 4: Carefully selected, robust portfolio
INVESTMENTS & OUTLOOK 4 …combined with a carefully selected, robust portfolio… Private equity Private debt Overweight high-quality and resilient companies within Focus on non-cyclical, larger-cap credits, combined with the healthcare, information technology and business negligible energy exposure an
Slide 5: Portfolio outperforming public market benchmarks
INVESTMENTS & OUTLOOK 5 …resulted in our portfolio outperforming public market benchmarks Portfolio performance overview for the five-month period ending on 31 May 2020 YTD as of 31 May 2020 Partners Group¹ Reference index return² Private equity (direct) -3.7% -8.2% Direct lending -5.5% -5.5% Liquid
Slide 6: Global transaction value in Q2 2020 at one of the lowest levels of the decade
INVESTMENTS & OUTLOOK 6 Due to COVID-19, global transaction value in Q2 2020 was at one of the lowest levels of the last decade1 Global private equity buyout investments1 (in USD billion) Global private equity buyout exits1 (in USD billion) 145 115 -29% Q/Q 114 97 98 96 99 88 -49% Q/Q 75 68 67 33 Q1
Slide 7: Investment activities skewed towards Q1 2020
INVESTMENTS & OUTLOOK 7 Investment activities predominantly skewed towards Q1 2020 Partners Group's private markets investments1 (in USD billion) Portfolio Sec. Prim. 8% 19.3 assets 27% Prim. USD Direct 19% Equity Sec. 4.3 billion Equity assets 56% 14.8 H1 2020 73% 13.3 Debt H2 17% Debt 11.7 H2 9.7
Slide 8: H1 2020 distribution activities dominated by closing of signed investments
INVESTMENTS & OUTLOOK 8 H1 2020 distribution activities dominated by "closing" of signed investments Partners Group's underlying portfolio realizations (in USD billion) • Divestment activities Prim. skewed towards the first twoEquity months of 13.4 Sec. the year 11.8 11.0 10.2 H2 Debt • Underlying p
Slide 9: Long-term transformative tailwinds persist despite COVID-19 structural changes
INVESTMENTS & OUTLOOK 9 Long-term transformative tailwinds persist, despite structural changes likely arising due to COVID-19 Tailwind Headwind • E-commerce & • Nutrition & alternative • Offline consumption • Event services digitalization of leisure ingredients Consumer time • Health & personal care
Slide 10: Amplification of key fundamental themes drives portfolio performance
INVESTMENTS & OUTLOOK 10 The amplification of key fundamental themes drives performance of existing portfolio… Software product engineering / digital outsourcing Submetering & energy efficiency solutions Increased need for software Trend towards remote monitoring and digital product benefits larger
Slide 11: Reinforces investment theses across various sub-sectors
INVESTMENTS & OUTLOOK 11 …and reinforces our investment theses across various sub-sectors Private equity & private debt Focus area Payments High Vertical Organic / Business Fertility software Established Robotic biological Intelligence Telehealth / high- surgery flavorings App dev-ops Online growth
Slide 12: Relative value outlook for real assets remains broadly unchanged
INVESTMENTS & OUTLOOK 12 Our relative value outlook for real assets remains broadly unchanged Private real estate Private infrastructure Post-COVID-19: remains unchanged Until 2035: USD 69tn of infra investment needed1 Energy incl. Select growth cities Renewables Transport Communications midstream F
Slide 13: Table of contents
H1 2020 AUM ANNOUNCEMENT 13 Table of contents 1 Investments & outlook 2 AuM development H1 2020 3 AuM outlook 2020
Slide 14: Breakdown of assets raised and AuM
AUM DEVELOPMENT H1 2020 14 Breakdown of assets raised and AuM Breakdown of assets raised during H1 2020 Breakdown of AuM as of 30 June 2020 Private infrastructure Private infrastructure 14% 26% Private equity Private real 35% Private equity USD estate USD 47% 8.3 billion 16% 96 billion Private real
Slide 15: Continued solid client demand
AUM DEVELOPMENT H1 2020 15 Continued solid client demand Total assets under management development (in USD billion, except where stated otherwise) +8.3 -4.0 -2.1 Tail-downs: -2.9 Others -1.5 USD 96.3 = EUR 85.7 bn USD 94.1 Redemptions: -1.1 = CHF 91.2 bn FX -0.6 Stemming from traditional closed- Gat
Slide 16: AuM development by asset class
AUM DEVELOPMENT H1 2020 16 AuM development by asset class (in USD) Assets under management development H1 2020 (in USD million) H1 2020 H1 2020 USD AuM New money/ Other AuM Net 2019 commitments factors1 H1 2020 growth Private equity 44,984 2,923 -3,112 44,795 0% Private debt 21,908 2,234 -1,737 22,4
Slide 17: Table of contents
H1 2020 AUM ANNOUNCEMENT 17 Table of contents 1 Investments & outlook 2 AuM development H1 2020 3 AuM outlook 2020
Slide 18: Stable platform development in H1 2020
AUM OUTLOOK 2020 18 Stable platform development in H1 2020 Total assets under management1 (in USD billion) AuM 94 96 Private # employees 14 83 1513 infrastructure 74 1464 +3% 15 Private 1203 real estate 57 50 1036 Private 43 45 930 22 debt 37 840 31 746 24 28 701 18 22 574 625 447 Private 11 334 361
Slide 19: Full-year guidance on new gross client demand in 2020
AUM OUTLOOK 2020 19 Full-year guidance on new gross client demand in 2020 AuM, client demand and other effects (in USD billion) Full-year 2020 expectations 12 - 15 Client demand +16.5 94 +15.7 83 74 Tail-downs & +15.0 -7.5 to -9.0 redemptions1 -7.1 +10.1 57 -5.6 50 +1.4 +/- FX & others2 -4.0 FX & ot
Slide 20: Contacts
20 Contacts Investor 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 partnersgroup@partnersgroup.com Media relations contact: Jenny Blinch www.partnersgroup.com T +44 207 575 25 71 jenny.blinch@partnersgro
Slide 21: Disclaimer
IMPORTANT NOTICE 21 Disclaimer NEITHER THE INFORMATION IN THIS DOCUMENT NOR ANY RELATED MATERIALS MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES OR DISTRIBUTED OR REDISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN. This presentation is strictly confidential t
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