In This Article:
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Management Fees: CHF1.6 billion, grew in line with AUM.
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Management Fee Margin: 1.25%, stable and recurring.
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Performance Fees: CHF511 million, up 38% from the prior year, representing 24% of revenues.
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EBITDA Margin: Approximately 63%, stable with prior years.
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Profit: CHF1.1 billion, up 12% year-over-year.
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Dividend Proposal: CHF42 per share, an 8% increase.
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Investment Activity: $22 billion, up 66% from the prior year.
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Realization Activity: $18 billion, up 53% from the prior year.
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Fundraising: $22 billion, up 18% from the prior year.
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Assets Under Management (AUM): Grew 4% year-over-year in both USD and CHF.
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Total Revenues: CHF2.1 billion, increased by 10%.
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Operating Costs: Increased by 9%, with 85% being personnel expenses.
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Tax Rate: 18% for 2024, with an anticipated range of 18% to 19% for 2025 onwards.
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Partners Group Holding AG (PGPHF) achieved CHF1.6 billion in management fees in 2024, demonstrating stable growth in line with AUM.
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Performance fees increased by 38% to CHF511 million, contributing 24% of total revenues.
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The company maintained a stable EBITDA margin of around 63%, reflecting disciplined cost management.
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Investment activity grew by 66% to $22 billion, with realization activity up 53% to $18 billion.
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US market presence strengthened, with US fundraising up by more than 50%, now representing 24% of the total mix.
Negative Points
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The private market industry experienced mixed results in 2024, with some areas contracting.
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Management fee growth was slightly impacted by currency fluctuations, growing at a lower rate of 3%.
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The industry is still in a period of relatively low liquidity, affecting distribution activity.
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Real estate contributed the least to performance fees due to ongoing industry transitions.
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The company faces competitive pressure in the US market, requiring significant investment in distribution and private wealth initiatives.
Q & A Highlights
Q: Can you discuss the outlook for activity and performance fees this year, considering the industry's slow start due to market volatility? Is the upper end of the 20% to 30% performance fee range still achievable? A: David Layton, CEO: The industry is in a gradual recovery, with activity levels slightly up in 2024 compared to 2023. We observed improved investor sentiment towards the end of the year. Our exit pipeline is mature, with 24% already in public positions. While market support is needed, we feel confident about the elements we can control.