Partners Group, a publicly-traded Swiss private market investment manager that draws a third of its revenue from Luxembourg, has announced an increase in assets under management of 8 percent to 147 billion dollars as per end 2023. The firm said it experienced a record year in terms of client commitments, attracting 18 billion dollars in new client funds.
Despite a challenging transaction environment, the Baar-Zug-based firm invested 13 billion dollars across private markets asset classes. For 2024, Partners Group projected gross client demand at 20 to 25 billion dollar, with a greater emphasis on the second half of the year.
David Layton (photo), partner and chief executive officer, commented on the firm’s resilience in a challenging market, noting the strength of the integrated platform and robust client demand for bespoke solutions. Layton acknowledged the decreased transaction volumes and slower exits but remains optimistic about signs of market improvement entering 2024.
New private markets paradigm
“In a challenging year characterized by a decrease in transaction volumes, slower exits, and muted fundraising activity overall, we were pleased to be able to deliver robust AuM growth,” Layton said in a press release. “While transaction activity was slower to recover than anticipated in the second half, we do see signs of improvement in the market as we enter 2024. In this new private markets paradigm, our transformational investing approach and ability to tailor bespoke solutions for our clients will remain our key growth drivers.”
The firm is due to report its full-year earnings and revenue in March. For 2022, it has reported revenue of about two billion euro. A good 600 million euro of that stemmed from its management services activities in Luxembourg, where it is registered at supervisor CSSF as a Alternative Investment Fund Manager. Data from the Luxembourg Business Register shows that Partners Group is active issuer of Reserved Alternative Investment Funds, with a fairly even spread in infrastructure, private equity, real estate and private debt.
Its AuM distribution across various asset classes as of per end 2023 includes private equity at 75.5 billion dollars, private debt at 29.3 billion dollars, private infrastructure at 25.2 billion dollars, and private real estate at 17.0 billion dollars.
Partners Group manages more than 300 diverse private markets portfolios. The breakdown of the 18 billion dollars in new commitments includes 8.3 billion in mandates, 4.8 billion in evergreens, and 5.1 billion in traditional closed-ended private market programs.