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%, distributing EUR 0.72 per share over the last twelve months.

• Portfolio remains highly diversified across 70+ direct private equity companies, with strong regional and sector balance and a healthy liquidity position.

• Major exits and realizations, including the sale of a Galderma stake, Techem, and KinderCare IPO, delivered significant uplifts to NAV.

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

• Partners Group Private Equity Limited (PGPE Ltd) 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 fully undrawn EUR 140 million credit facility.

• Over EUR 24 million paid to shareholders as the first interim dividend in 2024, totaling EUR 0.72 per share over the last twelve months.

• Portfolio return year-to-date is 5.6%, mainly driven by EBITDA growth and successful exits.

• Net debt increase detracted 2.4% from YTD performance as companies refinanced or funded growth.

Outlook and guidance

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

• Expectation of continued gradual sell down of Galderma and further liquidity events in 2025.

• Base case expects normalizing growth with continued US outperformance and gradual monetary policy easing.

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

• Share buybacks contingent on increased free cash flow from future realizations.