Partners Group (PGHN) investor relations material

Strategic priorities and market positioning

• Focus remains on expanding distribution partnerships and bespoke client solutions, with a third of recent industry partnerships involving the firm and a global footprint of 25 offices and ~2,000 employees.

• Continued emphasis on mandates and evergreens, with 67% of 2025 AuM in tailored strategies and minimums for separate accounts reduced to $50 million.

• Strategic partnerships, including with BlackRock and Deutsche Bank, and joint ventures are expected to drive significant growth in evergreen and mandate offerings, contributing over $2 billion in 2026.

• Expansion in underrepresented regions, notably Asia-Pacific and the Middle East, and use of traditional funds to build new client relationships in North America.

• Ongoing investments in technology and operational infrastructure support scalable, customized portfolio management and risk oversight.

Asset class developments and performance

• Private equity AuM reached $86 billion with an 11% five-year CAGR and nearly 20% IRR, driven by thematic sourcing and operational value creation.

• Infrastructure AuM grew to $36 billion with an 18% five-year CAGR, focusing on next-generation utilities and data centers, maintaining a top-quartile track record.

• Real estate strategy centers on vertical integration, highlighted by the Empira acquisition, targeting energy retrofits and operational intensity in living and industrial platforms.

• Private credit AuM stands at $40 billion with a 10% CAGR, using a disciplined, bottom-up approach and loss rates significantly below industry averages.

• Royalties, the newest asset class, surpassed $1.5 billion AuM with a 14.3% nIRR, investing across life sciences, entertainment, and energy transition, aiming for $30 billion by 2033.

Industry trends and growth outlook

• Institutional allocations to private markets have matured, shifting growth to customized solutions for insurance and individual investors.

• The private markets industry is projected to double from $15 trillion to $30 trillion, with bespoke mandates and evergreens as key growth drivers.

• Fundraising guidance for 2026 is $26–$32 billion, with growth expected across private wealth, mandates, and traditional funds, and a continued mix shift toward mandates and evergreens.

• Operating leverage remains strong, with excess investment capacity and a focus on maintaining EBITDA margins in the 25–40% range.

• 2025 saw 14% AuM growth, ending ahead of the 13% CAGR trajectory needed to reach over $450 billion AuM by 2033.