Partners Group / Key word(s): Half Year Results Baar-Zug, Switzerland; 5 September 2023 | Ad hoc announcement pursuant to Art. 53 Listing Rules (LR)
Summary of key financials H1 2023 (in CHF million)
1 Assets under management ("AuM") includes assets raised, tail-downs, and other related information. David Layton, Partner and Chief Executive Officer, says: "Private markets have shown resilient performance across market cycles and our diversified platform continues to deliver value to clients in this recalibrated economy. The positive set of financial results achieved in this environment illustrates the success of our differentiated positioning and we are confident that our growth trajectory will persist as the pace of client commitments normalizes." H1 2023 financials Total revenues increased by 19% to CHF 1'051 million (H1 2022: CHF 881 million) at a revenue margin of 1.67% (H1 2022: 1.44%) on average AuM in CHF. Solid performance fee development was balanced by lower total management fees.
Total operating costs increased by 31% to CHF 407 million (H1 2022: CHF 311 million), mainly driven by higher variable performance fee-related personnel expenses.
EBIT amounted to CHF 644 million (H1 2022: CHF 570 million) at an EBIT margin of 61.2% (H1 2022: 64.7%), a decrease of 3.5%-points, of which approximately 2%-points were driven exclusively by foreign exchange effects. Net finance income and expenses amounted to CHF 17 million (H1 2022: CHF -20 million), slightly offset by negative foreign exchange effects, hedging, and other costs. Corporate income taxes totaled CHF 110 million (H1 2022: CHF 85 million) at a tax rate of 16.6% (H1 2022: 15.5%), in line with the expected tax rate of 14% to 17%. For 2024 onwards, Partners Group expects the overall corporate income tax rate to increase to around 18% to 19% assuming the OECD BEPS Pillar II initiative will be implemented in 2024. In summary, the firm's profit increased 19%, broadly in line with revenues to CHF 551 million (H1 2022: CHF 464 million). Outlook Partners Group confirms its full-year 2023 guidance on expected gross client demand of USD 17 to 22 billion, together with USD -10.5 to -12.5 billion in tail-down effects stemming from the more mature closed-ended investment programs and redemptions from evergreen programs. The firm expects client demand to be diversified across its traditional programs and bespoke client solutions and anticipates stronger fundraising in the second half of the year, supported by an observed normalization of the pace of client conversions. Partners Group further expects performance fees for the full-year 2023 to be within its mid- to long-term guidance of 20% to 30% of total revenues. The firm's guidance is based on the resilient operational strength across its portfolio and the strong divestment pipeline which has been built as a result of its value creation efforts. The firm will continue to target a ~60% EBIT margin on new business as it builds out its resources in preparation for the future growth of the firm. Roberto Cagnati, Partner, Chief Risk Officer and Head Portfolio Solutions, at Partners Group concludes: "Within our bespoke solutions, mandates continue to be a leading contributor to our growth, as clients increasingly seek customized and dynamic solutions for their private markets investment requirements. Evergreens, an area in which we are pioneers, also continue to gain momentum and we look forward to launching a number of innovative evergreen solutions in different asset classes within the next twelve months." Conference call today & publication of Interim Report 2023 Partners Group's senior management will hold a conference call today at 9:00am BST at the Rosewood London. To register for the call, please click here or use the contact details at the end of this press release. The Interim Report as of 30 June 2023 will be published on 14 September at 7:00am CET and will be available for download at www.partnersgroup.com/en/shareholders/reports-presentations. Key dates 2023 and 2024
[1] Late management fees typically arise when clients join a commingled closed-ended investment program at a later stage of the fundraising period and are required to pay retrospectively for previously delivered management services to this respective program. Any such payments in relation to prior accounting years are called late management fees. About Partners Group Shareholder relations contact Media relations contact End of Inside Information |
| Language: | English |
| Company: | Partners Group |
| Zugerstrasse 57 | |
| 6341 Baar | |
| Switzerland | |
| Phone: | +41 41 784 60 00 |
| Fax: | + 41 41 784 60 01 |
| E-mail: | partnersgroup@partnersgroup.com |
| Internet: | https://www.partnersgroup.com/en/ |
| ISIN: | CH0024608827 |
| Valor: | 2460882 |
| Listed: | SIX Swiss Exchange |
| EQS News ID: | 1718689 |
| End of Announcement | EQS News Service |
1718689 05-Sep-2023 CET/CEST
