Partners Group's private equity AUM increases 7%

The firm also announced a growth rate of 8%, resulting in €67.1bn in total assets under management (AUM). Based on the strong first semester, the manager expects to receive €11-14bn in new client commitments for the full year 2018.

Its private equity AUM grew 7% to €33.8bn over the first semester of 2018. 

Partners Group also expects to receive €4.5-5.5bn in tail-down effects from its mature programmes and potential redemptions from liquid and semi-liquid programmes.

However, a spokesperson for the firm said the investment environment, including high valuations and competition for deals, are among the key challenges when investing in private equity and infrastructure. "In this environment, our approach is informed by our conviction that outperformance can only be achieved by having a value-creation-focused investment process (ie focused on unlocking unrealised value), from sourcing through due diligence to ownership," the spokesperson said.

Private equity has the largest share in the total AUM breakdown, amounting to 50%, followed by private debt (20%). Other asset classes include private real estate (17%) and private infrastructure (13%).

Private debt has been the fastest growing asset class, recording a 17% net growth over the first semester, reaching €13.1bn. The new commitments amounted to €2.3bn for the same period.

The new commitments have been diversified across all regions and the main contributors to this semester's fundraising include private equity, global real estate secondaries, and multi-asset credit and senior loan strategies.

André Frei, partner and co-chief executive officer, said ESG investments are not a tick box exercise for Partners Group. Indeed, he added it is an integral part of the industry, and that clients are looking more into it.

The firm recently launched PG Life, an ESG fund to meet demand from existing LPs that wanted a separate allocation for their ESG-focused investments. The $1bn hard-cap fund is focusing on the UN's sustainable development goals (SDG).

Other recent investments include the buyout of Dutch lightweight belting specialist Ammeraal Beltech at an enterprise value of €1bn. The firm also acquired a majority stake in German energy metering business Teche, while Caisse de dépôt et placement du Québec and Ontario Teachers' Pension Plan took minority positions.

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