Partners Group / Key word(s): Annual Results
Baar-Zug, Switzerland; 22 March 2022 | Ad hoc announcement pursuant to Art. 53 Listing Rules (LR)
Summary of key financials 2021 (in CHF million)
Steffen Meister, Executive Chairman of the Board, Partners Group, states: "In 2021, we have shown the true potential of our firm and the results that our platform, which we have been building for more than two decades, can deliver. We are confident in the long-term outlook for private markets, which we believe will grow to USD 30 trillion assets under management in the next decade. Private markets are, in our view, becoming the new 'traditional' asset class, offering tremendous investment opportunities for firms like ours. It will, however, be a market characterized by increased competition, growing regulatory scrutiny, and increasingly specialized market participants. In this environment, firms like Partners Group - well-resourced active managers that focus on thematic sourcing, value creation capabilities, and an entrepreneurial governance approach - will be greatly positioned to navigate these challenges and continue to deliver sustained outperformance to their clients, at scale."
David Layton, Partner and Chief Executive Officer, adds: "2021 was an outstanding year for Partners Group and we are proud of all our professionals around the world that have contributed to our results. The structural demand for private markets continues and we are confident in our outlook, despite the current uncertainty. However, while the early stages of 2022 have followed the successful path of the previous year, a period of market volatility and instability caused by the geopolitical crisis in Eastern Europe, inflationary pressures, and supply chain disruptions may lead to a weakening of economic growth. This could possibly, depending on developments, result in a temporary slow-down in our own investment activity in the months ahead. To continue capturing the opportunities represented by the growth of the private markets industry, we are following a clear strategic roadmap and will continue executing on our proven transformational investment approach."
Total revenues increased by 86% to CHF 2'629 million (2020: CHF 1'412 million), driven by a significant increase in performance fees and sustained strong management fee growth.
Hans Ploos van Amstel, Partner and Chief Financial Officer, notes: "Following the record amount of performance fees realized in 2021, we foresee a return to our mid-term guidance of performance fees consisting of 20-30% of total revenues, assuming market conditions and the exit environment remain broadly supportive. Therefore, we continue to expect performance fee potential to grow in line with AuM over time."
Total operating costs increased by 82% to CHF 978 million (2020: CHF 537 million), in line with revenues. Personnel expenses represent the majority of total operating costs.
EBIT increased by 89% in line with revenues, amounting to CHF 1'650 million (2020: CHF 875 million). The EBIT margin remained stable at 62.8% (2020: 62.0%). The financial result amounted to CHF 76 million (2020: CHF 53 million) and was driven by the positive valuation adjustments of Partners Group's own investments on the balance sheet alongside its clients. The firm's transformational investing strategy facilitated growth in these investment programs and resulted in an average return across asset classes of 16%. Corporate taxes amounted to CHF 263 million (2020: CHF 124 million), on an increased tax rate of 15.2% (2020: 13.3%) due to withholding taxes on US dividend distributions and changes to the country mix in 2021. In summary, the firm's profit increased in line with revenues by 82% year-on-year to CHF 1'464 million (2020: CHF 805 million).
Partners Group's Board of Directors continues to align the firm's progressive dividend strategy to its AuM growth and therefore proposes a dividend of CHF 33.00 per share (2020: CHF 27.50 per share) based on the solid development of the business and its confidence in the sustainability of the firm's growth. The proposal represents an increase of 20% year-on-year and a payout ratio of 60% (2020: 91%).
War in Ukraine
David Layton, Partner and Chief Executive Officer, adds: "We wholeheartedly condemn the unwarranted invasion of Ukraine and stand with all the people who are suffering as a result. Partners Group and its teams are supporting initiatives to bring medicine, food, and other essential supplies to Ukrainians in need. Partners Group has no direct investments in Ukraine, Russia, or Belarus. Indirect investments amount to less than 0.2% of AuM and comprise a handful of real estate and private equity interests. The firm has no Russian or Belarussian clients in its closed-ended programs."
Partners Group confirms its full-year 2022 guidance on expected gross client demand of USD 22 to 26 billion despite the current geopolitical uncertainty, together with USD -10 to -12 billion in tail-down effects stemming from the more mature closed-ended investment programs and redemptions from evergreen programs. Fundraising is expected to be balanced across all program types, from customized mandates and the firm's extensive range of evergreen fund solutions to traditional closed-ended programs.
Conference call today
Partners Group's senior management will hold a conference call today at 9:00am CET. To register for the call, please click here or use the contact details at the end of this press release.
The Annual Report as of 31 December 2021 was published today at 7.00am CET and is available for download at www.partnersgroup.com/financialreports.
Key dates 2022
 Late management fees typically arise when clients join a comingled 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 relating to prior accounting years are called late management fees.
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|Phone:||+41 41 784 60 00|
|Fax:||+ 41 41 784 60 01|
|Listed:||SIX Swiss Exchange|
|EQS News ID:||1308055|
|End of Announcement||EQS News Service|
1308055 22-March-2022 CET/CEST