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% 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.

Financial highlights

• NAV per share stood at EUR 14.24, with total NAV at 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 YTD gross portfolio return at 5.6% mainly driven by EBITDA growth.

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

• Over 60% of the portfolio is outperforming base case plans, with less than 10% below expectations.

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 further strengthen liquidity.

• 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.