Partners Group reaches €61.9bn in AUM

Oscar Geen
11 January 2018

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Private markets asset manager Partners Group has announced a compound annual growth rate of 16% for the last two years, resulting in тЌ61.9bn in assets under management (AUM), according to its annual results announcement.

The GP has secured €13.3bn in new private markets commitments for 2017, including €4.8bn of new money for its private equity strategy.

Private debt is the fastest growing allocation area for the firm, with new commitments of €3.5bn on existing capital of €8.6bn (30% net growth). Partners Group expects this to continue into 2018 and will be participating in higher-yielding direct lending strategies, as well as raising CLOs to give its investors access to broadly syndicated loans.

The private debt asset class generates significantly lower margins than equity investments but a spokesperson for the asset manager told a telephone conference that blended margins would remain stable. The spokesperson added that finding capacity and yields is the biggest challenge the industry faces currently.

In its private equity investments, Partners Group stated it had maintained its disciplined approach and turndown rate of 98%. The spokesperson said that all the businesses it completed due diligence for but lost in the auction sold at a price that would lead to a return 250-300 basis points lower than would be acceptable to Partners Group.

The firm is increasingly engaging in larger deals – the average investment ticket has grown 2.5-3x across all business lines in the last 10 years. Private equity cheques now range from €100-700m and up to €1bn with co-investment. However, the spokesperson said the majority of transactions remain within the "extended mid-market".

In response to an investor question, the spokesperson said it was possible that investment holding periods could be extended in the coming years, as value realisation often takes up to 10-15 years, a reality acknowledged by LPs.