Swiss fund manager Partners Group has increased its mid-year profits by 72 percent and grown its assets by 61 percent, as compared to the first half of 2006.
More than 90 percent of the Swiss-listed firm’s revenues – approximately CHF 146.7 million – stemmed from management fees; net profit for the first six months of 2007 were CHF 107.5 million ($89 million, €66 million), up 72 percent from the same period last year. The firm had additional profits of CHF 121.6 million because of the changes in fair value of derivatives arising from insurance contracts, according to a statement.
Partners Group’s assets under management as of 30 June were CHF 22 billion, a 61 percent, or CHF 4.7 billion, increase from the same period last year. Private equity assets, which account for well more than half of the firm’s assets, grew 25 percent to CHF 14 billion.
The firm expects its assets to “approach” CHF 30 billion by the end of 2008, and its goal is to hit CHF 50 billion by 2012.
Partners Group’s executive chairman, Alfred Gantner, said the firm has only done about 10 percent of the deals it has seen this year, and “is being more selective on the private equity and co-investment side of the business”.
“That’s why we’re alive and kicking after 11 years, it’s about picking the right deals,” Gantner said.
While today’s buyout environment will not provide the extraordinarily high internal rates of return seen in years like 2004, Gantner said, the firm is “strongly convinced that today’s environment still offers very good opportunities for solid buyout returns”.
Based in Zug, Switzerland, Partners Group manages funds across asset classes including private equity, hedge funds, private debt, real estate, listed alternative strategies and alternative beta strategies. It employs more than 220 people, including 34 partners and principals, in offices in Zug, London, Guernsey, New York, San Francisco, Singapore and Tokyo.