Swiss-based alternative asset manager Partners Group has announced that the funds raised for 2008 amount to CHF6.2bn, thereby exceeding the target of CHF5-6bn set at the beginning of 20
Swiss-based alternative asset manager Partners Group has announced that the funds raised for 2008 amount to CHF6.2bn, thereby exceeding the target of CHF5-6bn set at the beginning of 2008.
The figure represents asset inflows of 32 per cent in its core markets of private equity, private debt, private real estate and private infrastructure business.
It says the second half of the year continued to see sustained demand from clients for private market products, with total assets raised of CHF2.4bn of which CHF1.6bn were raised in quarter four.
Assets under management development was impacted by extraordinary effects during 2008, also amounting to CHF 6.2bn. These primarily stem from adverse foreign exchange developments, with the CHF (the firm’s reporting currency) strengthening significantly against both the Euro and the US Dollar, as well as from redemptions and negative performance predominantly in the smaller segment of public market activities.
The foreign exchange impact in December alone amounted to CHF1.1bn, resulting in estimated year-end assets under management of CHF24.4bn which is approximately CHF1bn below the firm’s guidance as of November 2008.
The strong growth in the core private markets segment has resulted in an increased duration of AuM, with long-term assets rising from 73 per cent as of the end of 2007 to 86 per cent at the end of 2008, while public market assets now only amount to seven per cent of total AuM.
Dr Marcel Erni, founding partner and chief investment officer, says: ‘The turbulence seen in 2008 has also affected private markets, with well-diversified portfolios seeing NAV corrections of 10-15 per cent as of year-end. However, our clients know to expect further value corrections in the magnitude of 15-20 per cent on their portfolios.
‘Despite these corrections, our overall asset base runs at a significant IRR far above public market comparables, encouraging many of our clients to recommit or expand their private market programs as witnessed by our strong asset inflows in the second half of 2008, with CHF1.6bn raised in the fourth quarter alone.’