Message from the Chairman and the Co-CEOs
2018 was a solid year for Partners Group in terms of the development of our financial performance and a highly successful year as regards our ability to deploy a significant amount of our clients' capital in attractive private markets assets.
We would like to thank our clients, our business partners, our shareholders and – not least – our colleagues for their continued trust in Partners Group.Message from the Chairman and the Co-CEOs
2018 at a glance
In 2018, we expanded our platform to 1,203 employees across 19 offices with the aim of systematically sourcing, investing in and developing an even larger set of businesses and assets. We continued to pursue our highly disciplined and prudent approach to source and execute the most attractive investment opportunities in a competitive market predominantly characterized by high valuations. Guided by this approach, we invested a record amount of USD 19.3 billion on behalf of our clients across all private markets asset classes in 2018.Investments
2018 was a solid fundraising year: we received EUR 13.3 billion in new commitments from our global client base, bringing total assets under management to EUR 73 billion. The demand derived from a wide spectrum of offerings across all private markets asset classes, with many of our more sizable clients requesting the creation of tailored programs, either through single or multi-asset class mandates, confirming the preference for non-standard solutions to meet the specific needs of larger institutional investors.Clients
While our base case economic outlook projects a period of continued modest growth, we are aware that the ride may become bumpier as multiple challenges emerge. In this environment, we believe strong governance and value creation skills are the only way to generate outperformance.
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 this report, the Nomination & Compensation Committee outlines the philosophy and principles behind our compensation structure and discloses the compensation paid to the members of the Executive Committee and the Board for the fiscal year 2018.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
In 2018, revenues increased by 7% year-on-year to CHF 1,326 million, attributable to an increase in revenues from management fees and continued solid performance fee development. EBITDA increased by 7% year-on-year, in line with revenues, to CHF 882 million. Profit increased by only 2% year-on-year to CHF 769 million due to a slightly lower financial result and higher taxes.Financial Report Financial Statements
Total assets under management(in EUR bn) See breakdown
Corporate Sustainability Report 2018
Portfolio-wide ESG impacts
liters of gasoline being consumed
passenger vehicles driven for one year
metric tons CO2e
tons of coal being burned
waste generated by almost
Swiss residents in a year
job growth rate
Corporate Sustainability Report
Our mission as an organization is to develop the companies and assets we invest in through entrepreneurial ownership. This stems largely from our belief that the ability to create value, enabled by a governance framework that supports entrepreneurialism, is the key driver of the returns we generate for our clients and their 200 million beneficiaries.
Naturally, our firm's sustainability priorities are also informed by this conviction. Our commitment to entrepreneurial ownership comes with the recognition that we are responsible not only for our own operations and our more than 1,200 employees, but also for those of our portfolio companies and their more than 220,000 combined employees. We want to ensure that the businesses and real assets in which we invest respect and endeavor to benefit society and the environment.
"Our mission as an organization is to develop the companies and assets we invest in through entrepreneurial ownership."Steffen MeisterExecutive Chairman
"Globally, 90% of institutional investors now believe that ESG integrated portfolios are likely to perform as well as, or better than, non-ESG integrated portfolios."Adam HeltzerHead of ESG & Sustainability
In a competitive market, we are emphasizing our focus on thematic sourcing. We search for opportunities in sub-sectors with above-average growth prospects that offer potential to generate further growth through entrepreneurial ownership and active value creation.
With near-record pricing for all main property types globally and a backdrop of rising interest rates, we continue to search for value creation opportunities in off-market situations. In order to source these opportunities, a strong network and the ability to provide bespoke solutions are key.
As leveraged loan markets remain competitive, we continue to be selective and focus on protecting yield by investing directly in defensive, cash generative businesses, negotiating downside protection in loan documents and actively managing liquid loan portfolios.
As the market remains highly competitive, we continue to focus on the trends that we believe will have a lasting impact on the infrastructure asset class and enable superior growth. These include the shift toward clean, more efficient energy and the need for ancillary infrastructure business services.