Partners Group, a leading global private markets firm, received USD12.1 billion in new commitments from its global client base in H1 2021 (H1 2020: USD8.3 billion), bringing the firm’s total AuM to USD118.9 billion as of 30 June 2021 (31 December 2020: USD109.1 billion). During the same period, the firm committed USD13.1 billion to transformational investing across private markets asset classes globally.
David Layton, Partner and Chief Executive Officer, says: “We entered 2021 with advanced investment and client demand pipelines as markets recovered momentum and investors regained confidence. As our H1 figures show, we have successfully transacted on this investment pipeline, although we have exercised high selectivity and discipline on pricing as valuations for good businesses remain peaky. On the client side, we have also been able to convert demand into meaningful AuM growth, which we believe speaks to continued investor confidence in the strength of our private markets platform. Looking ahead, our Thematic Investing theses about which sub-sectors stand to benefit from transformative trends have been bolstered and we have strong conviction in our continued ability to identify the associated companies and assets best positioned for future growth. As a result, our investment and client demand pipelines remain robust as we move into the second half of the year.”
Client demand for Partners Group’s offerings was well-diversified in H1 2021, with strong inflows across the entire platform. Partners Group’s bespoke client solutions were the largest overall contributors to assets raised, accounting for 64 per cent of client demand compared to 36 per cent for more traditional closed-ended private markets programs. Bespoke client solutions include single- and multi-asset class private markets mandates and evergreen programs, which cater to investor appetite for tailored private markets solutions and private markets funds with limited liquidity features.
Sarah Brewer, Partner and Co-Head Client Solutions, adds: “Growing numbers of clients appreciate the flexibility of choice presented by our range of non-traditional private markets offerings. We believe our ability to tailor access to private markets, and to create and actively manage bespoke programs that match different clients’ targets, remains unparalleled in the industry. Today, these tailored and non-traditional solutions account for 65 per cent of our total assets under management.”
Fundraising was diversified across the four private markets asset classes in H1 2021, with private equity the largest overall contributor. Private equity client demand was seen across the entire suite of the firm’s traditional and bespoke client solutions offerings. On the traditional offerings side, fundraising was supported by demand for the firm’s fourth buyout program, which is approaching its final close. On the bespoke client solutions side, alongside the strong growth of mandates and other open-ended funds, the firm’s flagship US evergreen fund was a key contributor to private equity fundraising, recording its highest ever inflows during the six-month period.
AuM growth in the first half of the year was further supported by continued performance across Partners Group’s private markets portfolios, which led to a positive contribution of USD3.3 billion from a select number of investment programs which link AuM to NAV-development. Tail-down effects from mature private markets investment programs amounted to USD-2.9 billion and redemptions from evergreen programs to USD-1.0 billion. Foreign exchange effects impacted underlying AuM growth by USD-1.6 billion, in particular the weakening of the Euro against the US Dollar. Overall, this resulted in net AuM growth of USD9.8 billion during the period.
The breakdown of total AuM across asset classes as of 30 June 2021 is: USD59 billion private equity (49 per cent), USD26 billion private debt (22 per cent), USD17 billion private real estate (15 per cent), and USD16 billion private infrastructure (14 per cent).
Strong investment activity due to advanced pipeline of assets [2]
On the back of an attractive investment pipeline generated by its Thematic Investing approach, Partners Group committed USD13.1 billion to transformational investing across all private markets asset classes in H1 2021.
The US was the most active region for Partners Group’s investment business during H1 2021, accounting for 55 per cent of all investment commitments vs 32 per cent in Europe and 13 per cent in Asia-Pacific / Rest of World. Examples of US investments transacted during the period include Axia Women’s Health, a leading provider of women’s healthcare services that is well-positioned to expand within the growing women’s health industry; Idera, a leading global provider of software solutions that enable its customers to navigate the digital transition; and Dimension Renewable Energy, a community solar and battery storage platform that supports the low-carbon transition.
