PartnersGroup

Annual Report 2018

Key figures

1,203
professionals
19
offices around the world
+18
EUR
73
billion
assets under management
1.71
percent
revenue margin
+7
chf
1,326
million
revenues
+7
chf
882
million
EBITDA
chf
769
million
Profit
+16
chf
22
per share
proposed dividend
Key figures

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
Co-CEOs
André Frei
Co-Chief Executive Officer
Steffen Meister
Executive Chairman
David Layton
Co-Chief Executive Officer

2018 at a glance

Investments

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

Clients

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

Market commentary

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.

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 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
Grace del Rosario-Castaño > Chairwoman of the Nomination & Compensation Committee
Grace del Rosario-Castaño
Chairwoman of the Nomination & Compensation Committee

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
Corporate Governance Report
Steffen Meister
Executive Chairman

Financials

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

Total assets under management

PartnersGroup

Corporate Sustainability Report 2018

Portfolio-wide ESG impacts

Impact achieved

Equivalent to

Impact achieved

203

million kWh

energy consumption

REDUCED

=

Equivalent to

61,000,000

liters of gasoline being consumed

Impact achieved

2.6

million liters

fuel

SAVED

=

Equivalent to

1,146

passenger vehicles driven for one year

Impact achieved

879,000

metric tons CO2e

CO2 emissions

AVOIDED

=

Equivalent to

436,000

tons of coal being burned

Impact achieved

5,097

tons

waste

RECYCLED

=

Equivalent to

waste generated by almost

7,000

Swiss residents in a year

Impact achieved

13,608

new jobs

CREATED

=

Equivalent to

7.6

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