Partners Group, the Switzerland-based alternative asset manager, says its half-year results for the six months to June 30 reflect consistent investment performance combined with the shift in investors' allocations to alternative asset classes.
The group says its growth in assets under management in the first half of the year by CHF4.7bn to CHF22bn had a direct influence on net revenues, which amounted to CHF146.7m for the period, an increase of 61 per cent compared with the first half of 2006.
Revenues were again predominantly driven by management fees earned on investment products, which made up 91 per cent of the total, supplemented by additional income from organizational fees and performance fees.
Partners Group says operating costs rose by a more modest 40 per cent, resulting in a 69 per cent increase in earnings before interest, tax, depreciation and amortisation to CHF112.6m, and achieving an ebitda margin of 77 per cent for the six-month period.
The adjusted net profit for the six-month period totalled CHF107.5m, an increase of 72 per cent compared with the same period in 2006. Additional profits were booked through the changes in fair value of derivatives arising from insurance contracts, resulting in a net profit according to IFRS of CHF121.6m.
The firm says the outlook for the second half of this year as well as for next year remains positive, both for development of assets under management as well as for financial performance. Assets under management are expected to approach CHF30bn by the end of next year.
Partners Group manages alternative investment programmes including private equity, private debt, private real estate, listed alternative strategies, hedge funds and alternative beta strategies through a broad range of funds, structured products and customised portfolios for an international clientele of institutional investors, private banks and distribution partners.
Headquartered in Zug, Switzerland, with offices in New York, London, San Francisco, Singapore and Guernsey, the firm employs more than 220 people, is listed on the SWX Swiss Exchange and is majority owned by its 34 partners and principals and its employees.
However, the market turbulence over the past two months has seen the group's market capitalisation decline by nearly 20 per cent, from more than CHF4.5bn at the beginning of July to CHF3.7bn at the close on August 24. From CHF183.40 on July 9, the Partners Group share price fell as low as CHF129.3 on August 21 before recovering to CHF140.1 at the end of last week.