Partners Group records €5bn of asset inflows in 2012


zurich-berlin-germany-switzerland_sqGlobal private markets investor Partners Group said Wednesday its asset inflows reached almost €5bn last year, resulting from sustained client demand across its entire offering.

The Switzerland-based firm recorded asset inflows of €4.9bn at the upper end of the expected range of €4bn and €5bn, resulting in total assets under management as of December 31 2012 of €28.6bn.

The firm said it expects asset inflows of €4bn to €6bn for 2013, as announced in November 2012.

Net asset management growth was lowered by other factors totaling €1.2bn, comprising a variety of different effects. Around €0.4bn of this represents tail-down effects from older private markets programs, which are expected to increase in the years to come.

A further €0.3bn was redeemed mainly from listed activities.

Partners Group said €0.4bn of the remainder relates to a number of the firm’s long-standing structured products being repositioned to increase their focus on direct investments, with a large part of the effects from this repositioning now absorbed.

The firm completed 32 direct investments across all sectors and geographies in 2012, and further distributed proceeds from more than 20 exits of direct investments to its clients during the year.

“We look back on a very busy year in which we continued to broaden our product offering to capitalise on the investment opportunities arising out of the current market environment and further saw client activity pick up in all our teams,” CEO Steffen Meister said in the statement.

“In a market characterised by interest rates near zero and negative real yields on the safest government bonds, investors will have to hunt for yield in other areas in order to meet their return targets while risk aversion remains high on average.

“We see this risk-averse flow of money leading to large valuation gaps and to what we call the ‘great new value divide.”

“In this value divide, we see a sustained opportunity for specialized private markets investment managers to generate superior return potential for clients.”

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