- Revenues increased by 10% to CHF 2’136 million
- Management fees amounted to CHF 1’625 million, up 3%, adversely impacted by FX effects
- Performance fees up 38% to CHF 511 million (24% of total revenues); improved exit activity drove H2 results; forward guidance on performance fees confirmed
- EBITDA up 10% to CHF 1’357 million; EBITDA margin stable at 63.6%
- Profit up 12% to CHF 1’128 million; proposed dividend up 8% to CHF 42.00 per share
- Reconfirmed guidance of expected total new client assets of USD 26 to 31 billion in 2025
Summary of key financials 2024 (in CHF million)
|
|
2024
|
2023
|
|
|
Revenues[1]
|
2’136
|
1’945
|
10%
|
|
Management fees[2]
|
1’625
|
1’575
|
3%
|
|
Performance fees
|
511
|
369
|
38%
|
|
Total operating costs[3]
|
-778
|
-711
|
9%
|
|
EBITDA[4]
|
1’357
|
1’234
|
10%
|
|
EBITDA margin
|
63.6%
|
63.4%
|
|
|
EBIT[4]
|
1’309
|
1’193
|
10%
|
|
EBIT margin
|
61.3%
|
61.3%
|
|
|
Net finance income and expenses
|
61
|
16
|
|
|
Income taxes
|
-242
|
-205
|
|
|
Profit
|
1’128
|
1’003
|
12%
|
|
Dividend per share
|
42.00[5]
|
39.00
|
8%
|
David Layton, Partner and Chief Executive Officer, says: “We experienced significant progress in our exit pipeline in the second half of 2024, driven by the sale of direct assets. This lifted full-year realizations by 53% year-on-year to USD 18 billion. We attribute this achievement to our transformational investing approach, which proved effective even in challenging market conditions. On the fundraising side, we have placed significant focus on growing our client base in North America and on the expansion of our private wealth business. North America contributed a record 33% to fundraising in 2024, half of which was attributable to private wealth investors. It’s encouraging to see these strategic initiatives bearing fruit and contributing to our strong financial performance in 2024.”
2024 financials
Total revenues increased by 10% to CHF 2’136 million (2023: CHF 1’945 million) at a revenue margin[6] of 1.64% (2023: 1.56%).
- Management fees increased by 3% to CHF 1’625 million (2023: CHF 1’575 million) and developed in line with average assets under management[7] (AuM) in CHF. Foreign exchange effects, in particular the strengthening of the CHF against the USD and the EUR, negatively impacted management fee growth by 2%.
- Performance fees increased by 38% to CHF 511 million (2023: CHF 369 million), representing 24% of total revenues (2023: 19%). The marked increase primarily resulted from successful exits and strong performance across portfolios in H2, which accounted for 68% of the total.
Joris Gröflin, Partner and Chief Financial Officer, adds: “As exit markets recovered in H2, we signed several significant exits across our direct private equity and infrastructure portfolios, which drove a strong increase in performance fees. As we look ahead, we have a USD 19 billion pipeline of direct assets[8] that are expected to be realized in the next 2-3 years. This gives us confidence in our ability to generate performance fees accounting for 25-40% of revenues from 2026 onwards.”
Total operating costs[9] increased at a slower rate than revenues, by 9% to CHF 778 million (2023: CHF 711 million), mainly driven by higher variable performance fee-related personnel expenses.
- Total personnel expenses (85% of total operating costs) increased by 9% to CHF 658 million (2023: CHF 603 million), in line with revenues. Management fee-funded personnel expenses remained largely flat at CHF 472 million (2023: CHF 470 million), while the average number of FTEs decreased by 5%. Performance fee-related personnel expenses increased by 40% to CHF 186 million (2023: CHF 133 million), in-line with performance fees.
- Other operating expenses increased by 11% to CHF 120 million (2023: CHF 108 million).
EBITDA increased by 10% to CHF 1’357 million (2023: CHF 1’234 million) at an EBITDA margin of 63.6% (2023: 63.4%). Depreciation & amortization increased 18% to CHF 49 million (2023: CHF 41 million). Consequently, EBIT increased by 10% to CHF 1’309 million (2023: CHF 1’193 million) at an EBIT margin of 61.3% (2023: 61.3%), in line with total revenues.
Net finance income and expenses amounted to CHF 61 million (2023: CHF 16 million). The firm’s transformational investing approach translated into positive underlying asset and portfolio performance, resulting in a contribution of CHF 112 million (2023: CHF 67 million) from Partners Group’s investments alongside its clients. At the same time, negative foreign exchange effects, hedging, and interest expenses resulted in a negative contribution of CHF -51 million (2023: CHF -51 million). Income taxes totaled CHF 242 million (2023: CHF 205 million) at a tax rate of 18% (2023: 17%).
In summary, the firm’s profit increased to CHF 1’128 million (2023: CHF 1’003 million). Partners Group’s Board of Directors proposes a dividend of CHF 42.00 per share (previous year: CHF 39.00 per share) based on the solid development of the business and its confidence in the sustainability of the firm’s growth. The proposal represents an increase of 8% year-on-year.
Outlook
For the full year 2025, Partners Group expects total new client assets of between USD 26 to 31 billion. This includes a guidance of USD 22 to 27 billion in expected gross client demand from existing Partners Group business activities and USD 4 billion of platform growth from the acquisition of Empira Group, which closed in early 2025. The firm bases its guidance on the large and visible pipeline of fundraising opportunities across all of the firm’s private markets asset classes. Full-year estimates for tail-down effects from more mature closed-ended investment programs are USD -9 to -10 billion.
With regard to financials, Partners Group reconfirms its expectation for performance fees to account for 20-30% of total revenues in 2025 and 25-40% from 2026 onwards. The firm bases its forward-looking expectation on the increasing proportion of the firm’s maturing portfolio that consists of direct investments, which command a higher performance fee.
Beginning in 2025, Partners Group will change its profitability measure from EBIT margin to EBITDA margin in the firm’s external communication. Over the last three years, Partners Group’s EBITDA margin has been stable at around 63%. The firm’s approach to cost management remains unchanged and it will continue to apply an operating margin of approximately 60% for newly generated management fees (assuming stable foreign exchange rates) and performance fees. The decision to modify Partners Group’s profitability measure was primarily driven by its increased engagement in M&A activities in a consolidating industry.[10] EBITDA has emerged as the European standard, with the majority of private market managers now referring to it as a key profitability measure.
Conference call today & publication of 2024 Annual Report
Partners Group’s senior management will hold a conference call today at 9:00am CET. To register for the call, please click here or use the contact details at the end of this press release.
The Annual Report as of 31 December 2024 is available for download at www.partnersgroup.com/financialreports.
Upcoming key dates
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12 March 2025
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Capital Markets Day
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23 April 2025
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Publication of 2024 Sustainability Report
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21 May 2025
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Annual General Meeting of Shareholders
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|
23 May 2025
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Ex-dividend date
|
|
27 May 2025
|
Dividend payment date
|
|
15 July 2025
|
Announcement of AuM as of 30 June 2025
|
|
2 September 2025
|
Announcement of H1 Financial Results and Report as of 30 June 2025
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