Key figures
Message from the Chairman and the Co-CEOs
2017 was a successful year for Partners Group. Strong client demand coupled with continued growth in investment activities and underlying portfolio realizations enabled us to generate solid financials across the board and further consolidate our position as one of the world’s leading private markets investment managers. Revenues increased to over CHF 1 billion for the first time and we expanded our platform to over 1,000 highly talented and dedicated professionals.
Message from the Chairman and the Co-CEOs
2017 at a glance
Investments
In 2017, we continued to pursue our highly disciplined and prudent approach to source and execute the most attractive investment opportunities in an uncertain market environment, characterized by full valuations and increased competition for transactions. With a focus on corporate, real estate and infrastructure assets where active value creation remains the key driver of returns, we invested a total of USD 13.3 billion on behalf of our clients during the period.
InvestmentsClients
We continued to see strong client demand across asset classes and regions in 2017, mainly driven by ongoing transformative trends in the asset management industry. We received EUR 13.3 billion in new commitments from our global client base across all private markets asset classes, moderately exceeding the communicated expected bandwidth of EUR 10-12 billion for the full year. Total assets under management stood at EUR 61.9 billion as of 31 December 2017.
ClientsMarket commentary
As the chances of a deviation from our base case macroeconomic outlook of low but steady growth continue to rise, we are focusing on sectors benefiting from the global megatrends that we believe will continue to generate attractive investment opportunities in the long term. These include digital transformation, new generation living and consumption, and the energy revolution.
Portfolio-wide ESG impacts
Impact achieved
Equivalent to
Impact achieved
153
million kWh
energy consumption
REDUCED
Equivalent to
48,500,808
liters of gasoline
Impact achieved
1.9
million m3
water consumption
REDUCED
Equivalent to
760
olympic-sized swimming pools
Impact achieved
830,000
metric tons CO2e
CO2 emissions
AVOIDED
Equivalent to
177,245
passenger vehicles driven for one year
Impact achieved
8.2
million USD
ESG value creation EBITDA
IMPACT
Equivalent to
4.1
of our overall 2017 industry value creation target
Impact achieved
13,039
net new jobs
CREATED
Equivalent to
9.1
job growth rate
Compensation Report
As a private markets investment manager, we value our long-term approach to investment, since it enables us to optimize value creation for all stakeholders. We value a similar long-term approach when it comes to employee compensation. In 2017, we continued to develop our compensation structure and introduced three changes that we believe will align the interests of our employees with those of our clients and shareholders even further.
Compensation Report
Corporate Governance Report
Partners Group is committed to meeting high standards of corporate governance, with the aim of guiding the firm to further success.
Corporate Governance Report
Highlights
Client demand (EUR 13 billion raised), investment activities (USD 13 billion invested) and underlying portfolio realizations (USD 12 billion) in 2017 enabled us to generate strong financials across the board. Revenues increased for the first time to over CHF 1 billion, attributable to an increase in revenues from management fees and continued solid performance fee development.
Key figures-
Assets under management(in EUR bn)61.9
-
Revenue margin1.89%
-
Revenues(in CHF m)1,245
-
Management fees(in CHF m)873
-
Performance fees(in CHF m)372
-
EBITDA margin66%
-
EBITDA(in CHF m)825
-
IFRS profit(in CHF m)752
Financials
In 2017, revenues increased by 28% year on year to CHF 1,245 million and EBITDA by 37% year on year to CHF 825 million, resulting in a record bottom line of CHF 752 million, an increase of 35% over the same period last year. The public market valued Partners Group at CHF 18 billion in market capitalization as of the end of 2017, making it one of the most valuable listed private markets investment manager globally.
Financial Report Financial statements
Peaky valuations and the likelihood of multiple contraction continue to mean it is not enough to simply 'buy smart'. Instead, we focus on compelling companies in growth sectors where we can proactively create value.
High levels of dry powder and the search for yield continue to drive up prices in the real estate market. To find value, we continue to shift our investment focus towards special situations, defined as off-market transactions, where hidden potential can be unlocked.
As leveraged loan volumes reach new heights, we are emphasizing our ability to remain flexible and offer one-stop-shop direct financing solutions complemented by active portfolio management for liquid loans.
Institutional appetite for infrastructure investment shows no sign of flagging. To benefit from the attractive selling conditions, we have concentrated on capturing attractive returns for operational assets through well-timed exits.