Partners Group Private Equity (PEY) Q3 2024 earnings summary

Executive summary

• NAV total return year-to-date reached 3.1% as of September 2024, with share price total return at 5.9% and a dividend yield of 6.8%, supported by EUR 0.72 per share distributed over the last twelve months.

• Portfolio remains highly diversified across 70+ direct private equity companies, industries, regions, and vintages, with mature and new assets contributing to consistent performance.

• Major exits and realizations, including Galderma, Techem, and KinderCare IPO, delivered significant value creation and uplifts to NAV.

• 10-year NAV and share price total returns are 10% and 11% per annum, respectively.

• Partners Group Private Equity Limited (formerly Princess Private Equity Holding Limited) is managed by Partners Group and listed on the London Stock Exchange.

Financial highlights

• NAV per share stood at EUR 14.24, with total NAV at approximately EUR 1 billion as of 30 September 2024.

• Cash and cash equivalents were EUR 5.4 million, with a EUR 140 million undrawn revolving credit facility.

• Portfolio companies delivered double-digit EBITDA growth on an LTM basis, with top 20 direct equity investments averaging 11% LTM EBITDA growth and 17.5x EV/EBITDA multiple.

• Year-to-date gross portfolio return is 5.6%, mainly driven by EBITDA growth, with net debt increase detracting 2.4% from YTD performance.

• Dividend payments totaled EUR 0.72 per share over the last twelve months.

Outlook and guidance

• High conviction maintained in pre-2020 assets to support future performance as realizations materialize.

• Expectation of continued gradual sell-down of Galderma stake and anticipated closing of Techem sale in Q1 2025, with proceeds expected to strengthen liquidity.

• Base case expects normalizing growth, continued US outperformance, and gradual monetary policy easing, with market valuations expected to be 0–5% higher over the next five years.

• Thematic sourcing and transformational investing are emphasized as critical in a less supportive macro environment.