Partners Group grows AUM to over €40bn

The Swiss-headquartered firm reported an increase in private debt EBITDA even as overall EBITDA fell on the back of the strengthening Swiss franc.

Partners Group reported a 12 percent increase in assets under management (AUM) over the first six months of the year, from €37.6 billion at the end of December to €42.1 billion at 30 June. Private debt strategies made up €5 billion of the June figure. 

Customised private markets mandates covering a range of strategies remain the most popular choice with investors, the group said in its interim report. 

The sudden increase in the value of the Swiss franc in January contributed around an extra €1 billion to the AUM figure, the Zug-headquartered firm reported, as most of the firm's assets are US dollar-denominated while the firm reports AUM in euros.

Currency volatility also hit the firm's revenue and EBITDA margin, as did lower late management fees. Partners Group reports those figures in Swiss francs and the strengthening of the currency meant that despite strong investment performance and increased performance fees, revenues for the first six months of 2015 were flat compared with 12 months earlier, at SFr287 million ($293 million; €263 million).

The same factors caused the firm's EBITDA margin to fall to 58 percent for H1, from 62 percent a year earlier. EBITDA stood at SFr166 million, down from SFr178 million year-on-year.

Within the private debt segment, however, EBITDA rose from SFr21.8 million to SFr24.9 million at the end of June.

Performance fees increased by SFr20 million to SFr32 million, year-on-year, making up 11 percent of revenues. The firm said that much of its distributions were still to clients, however, and that performance fees are expected to continue increasing disproportionately in the coming years.