Partners Group (PGHN) H1 2024 earnings summary

Executive summary

• Delivered solid operational and financial results in H1 2024, with fundraising up 39% year-over-year to USD 11–11.1 billion and full-year guidance of USD 20–25 billion reaffirmed.

• Assets under management (AuM) reached USD 149–149.2 billion, up 5% year-over-year, with strong growth in bespoke client solutions and North America.

• Management fees increased 4% to CHF 815 million, while performance fees fell 39% to CHF 161 million due to muted transaction activity and delayed exits.

• EBIT margin reached 62%, reflecting strong profitability and effective cost management.

• Net profit for H1 2024 was CHF 508 million, with a tax rate at 18%.

Financial highlights

• Total revenues decreased 7% year-over-year to CHF 977 million, mainly due to lower performance fees and adverse FX impact.

• Management fees represented 83% of total revenues, up from 75% in H1 2023.

• Performance fees accounted for 17% of revenues, down from 25% in the prior year.

• EBIT was CHF 605 million, down 6% year-over-year, in line with revenue decline.

• Available liquidity stood at CHF 2.3 billion as of June 30, 2024, after a CHF 1,018 million dividend payment.

Outlook and guidance

• Full-year 2024 fundraising guidance of USD 20–25 billion confirmed, with North America expected to drive growth.

• Performance fees expected to be around 20% of revenues in 2024, rising to 25–40% from 2026 as direct portfolios mature.

• Management fees in CHF expected to grow in line with average AuM; effective tax rate expected to stabilize at 18–19%.

• Anticipates increased transaction and exit activity in H2 and beyond.

• Continued expansion in private wealth and infrastructure platforms, with a strong exit pipeline anticipated.