Partners Group (PGHN) H2 2024 earnings summary

Executive summary

• Achieved CHF 1.6 billion in management fees and CHF 511 million in performance fees, with performance fees up 38% year-over-year and representing 24% of revenues.

• Profit rose 12% to CHF 1.13 billion, and a dividend increase to CHF 42 per share was proposed, reflecting strong business development and growth outlook.

• Investment activity grew 66% to CHF 22 billion, and realization activity increased 53% to $18 billion; fundraising rose 18% to $22 billion, with 33% of inflows from North America.

• U.S. fundraising surged over 50%, now representing 24% of the total mix.

• Assets under management grew 4% year-over-year to USD 152 billion.

Financial highlights

• Total revenues increased 10% to CHF 2.1 billion year-over-year.

• EBITDA margin remained stable at around 63%, with EBITDA up 10%.

• Management fee margin was stable at 1.25%-1.26%.

• Performance fees from private equity and infrastructure contributed 89% of total performance fees.

• Return on equity reached 47%, and available liquidity stood at CHF 2.7 billion as of year-end.

Outlook and guidance

• Guidance for 2025: total new client assets expected at $26 billion-$31 billion, unchanged from prior guidance.

• Performance fees as a percentage of revenues expected to rise to 25%-40% by 2026 and beyond.

• Management fee margin expected to remain stable, subject to product mix.

• Anticipates continued disproportionate growth in North America, especially the US and Canada.

• Personnel costs projected to grow in line with revenue.