Partners Group Holding AG · SIX:PGHN
Partners — H1 2017 Earnings Presentation
23 slides from Partners's earnings presentation, Jul 13, 2017
Slide 1: H1 2017 AuM announcement
13 JULY 2017 H1 2017 AuM announcement André Frei, Co-CEO | Christoph Rubeli, Co-CEO Marlis Morin Head Client Services | Kim Nguyen Private Equity Europe
Slide 2: Important note
H1 2017 AUM ANNOUNCEMENT 2 Important note The following are management’s estimates for H1 2017 as of 30 June and as such are subject to change. Figures provided have been rounded for presentation purposes and in certain instances rounding anomalies may arise.
Slide 3: Table of contents
H1 2017 AUM ANNOUNCEMENT 3 Table of contents 1 AuM development & outlook 2 Market & investments
Slide 4: Sustained growth in AuM and number of employees over the last decade
AUM DEVELOPMENT & OUTLOOK 4 Sustained growth in AuM and number of employees over the last decade Total assets under management (in EUR billion) 57.8 AuM 54.2 46.0 #973 #930 employees 37.6 #840 31.6 #746 27.8 24.1 #701 20.7 #625 15.5 16.6 #574 12.6 #447 8.6 #361 5.5 #334 #273 #175 #137 2005 2006 2007
Slide 5: 14% annualized net AuM growth in H1 2017
AUM DEVELOPMENT & OUTLOOK 5 14% annualized net AuM growth in H1 2017 Total assets under management development (in EUR billion) +6.9 -1.9 -1.4 Tail-downs: -1.5 Other +0.3 EUR 57.8 = USD 65.9 Redemptions: -0.4 = CHF 63.1 FX -1.7 EUR 54.2 Guidance No guidance provided provided 2016 New money/ Tail-dow
Slide 6: Client demand across asset classes
AUM DEVELOPMENT & OUTLOOK 6 Client demand across asset classes… Assets under management development H1 2017 (in EUR million) H1 2017 EUR AuM New money/ H1 2017 AuM 2016 commitments Other factors** H1 2017 Private equity 29'992 3'093 -2'097 30'988 Private debt 8'633 2'050 -535 10'147 Private real est
Slide 7: Driven by both program offerings and customized mandate solutions
AUM DEVELOPMENT & OUTLOOK 7 …driven by both program offerings and customized mandate solutions Breakdown of assets raised by asset class Assets raised by strategy Private • Global directs Private infrastructure equity • Global integrated Programs & customized mandates 20% (2016: 19%) Private • Globa
Slide 8: Partners Group H1 2017 investment platform overview
AUM DEVELOPMENT & OUTLOOK 8 Partners Group H1 2017 investment platform overview Investment platform update 42 direct investments across the globe • Over 950 total employees North Asia-Pacific/ Europe America RoW • USD 5.6 billion invested in private markets opportunities on behalf of our clients 17
Slide 9: Continued significant deal flow
AUM DEVELOPMENT & OUTLOOK 9 Continued significant deal flow First screenings in H1 2017 Directs Secondaries Primaries Private equity 798 USD 42 billion 111 Private debt 246 n/a n/a Private real estate 694 USD 26 billion 100 Private infrastructure 473 USD 5 billion 47 Total screened 2'211 USD 73 bill
Slide 10: Private markets investment activities across the globe and across all asset classes
AUM DEVELOPMENT & OUTLOOK 10 Private markets investment activities across the globe and across all asset classes Private markets investments in H1 2017 North America Primaries 39% Europe 25% Equity Directs 51% 57% USD USD 5.6 billion 5.6 billion Debt Secondaries 18% Asia-Pacific/ RoW 10% Note: preli
Slide 11: Full-year 2017 guidance adjusted to EUR 10-12 billion
AUM DEVELOPMENT & OUTLOOK 11 Based on strong client demand, the full-year 2017 guidance was adjusted to EUR 10-12 billion; skew to the first half expected Total expected gross client demand 2017 (in EUR billion) Fundraising topics 2017 10 – 12 Private • Global directs equity • Global integrated Prog
Slide 12: Expected gross client demand for the full-year 2017
AUM DEVELOPMENT & OUTLOOK 12 Expected gross client demand for the full-year 2017 AuM, client demand and other effects (in EUR billion, estimates) Full-year 2017 expectations 10-12 9.2 Client demand 54.2 8.4 46.0 (-3 to -4) Tail-downs & 6.1 37.6 (-1.0) redemptions* 31.6 (0.0) -2.6 +/- FX & others** (
Slide 13: Table of contents
H1 2017 AUM ANNOUNCEMENT 13 Table of contents 1 AuM development & outlook 2 Market & investments
Slide 14: Partners Group's current core macroeconomic views
MARKET & INVESTMENTS 14 Partners Group’s current core macroeconomic views Further growth acceleration unlikely End of loose monetary policy Focus on stability & value-add • US economy expanding at modest yet • Fed tightening via rates and balance • Think in scenarios: identify assets that steady pac
Slide 15: The importance of scenario-thinking
MARKET & INVESTMENTS 15 The importance of scenario-thinking Partners Group's economic and market scenarios: main parameters Base case Asset testing scenarios Base case scenario Low but steady growth, real economic Low but steady Stock Faster rate Mild growth over the next 3-5 years maintains its mod
Slide 16: Key investment strategies: private equity
MARKET & INVESTMENTS 16 Key investment strategies: private equity • Platform companies – acquire companies and support add-on acquisitions for platform build-out Private equity • Category winners – companies that are leaders in their industry in terms of market share or growth • Defensive leaders –
Slide 17: Key investment strategies: private debt
MARKET & INVESTMENTS 17 Key investment strategies: private debt • Global relative value – execute on a local level and adjust based on the opportunity set Private debt • Target industries – recession-resilient companies with recurring cash flows in niche markets • Capital structure – invest flexibly
Slide 18: Key investment strategies: private real estate
MARKET & INVESTMENTS 18 Key investment strategies: private real estate • Buy below replacement cost – reposition assets with low valuations in rebounding markets Private • Buy, fix and sell – target older assets in good locations in need of owner-oriented asset management real estate • Develop core
Slide 19: Key investment strategies: private infrastructure
MARKET & INVESTMENTS 19 Key investment strategies: private infrastructure • Value enhancement potential – enhance operational value with growth and efficiency improvements Private • Transformative growth – build infrastructure where demand is supported by strong fundamentals infrastructure • Market-
Slide 20: Outlook on private markets investments
MARKET & INVESTMENTS 20 Outlook on private markets investments Partners Group's investment assessment Deal flow Focusing on a structured approach to deal flow by leveraging market insight Relative value Matching global relative value with bottom-up investment analysis provides a competitive adva
Slide 21: Contacts
21 Contacts Investor relations contact: Zugerstrasse 57 Philip Sauer 6341 Baar-Zug Tel.: +41 41 784 66 60 Switzerland Email: philip.sauer@partnersgroup.com Tel.: +41 41 784 60 00 Fax: +41 41 784 60 01 Media relations contact: Jenny Blinch www.partnersgroup.com Tel.: +41 41 784 65 26 partnersgroup@pa
Slide 22: Disclaimer
IMPORTANT NOTICE 22 Disclaimer This material has been prepared solely for purposes of illustration and discussion. Under no circumstances should the informa tion contained herein be used or considered as an offer to sell, or solicitation of an offer to buy any security. Any security offering is subj
Slide 23: Disclaimer
IMPORTANT NOTICE 23 Disclaimer Material notes to investors based in the Dubai International Financial Centre This material relates to a financial product which is not subject to any form of regulation or approval by the Dubai Financial Services Authority ("DFSA"). The DFSA has no responsibility for
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