Swiss asset manager Partners Group grew its total assets under management by 18% in 2018 and says it expects demand from its clients to remain strong through 2019.
The Zug-based private markets specialist invested $19.3 bn (€16.9 bn) across all asset classes, compared to $13.3 bn (€11.1 bn) in the previous year. Gross client inflows of €13.3 bn matched the figure for 2017 and the company anticipates demand of between €13-€16 bn for the current year.
Management fees increased by 15% to CHF 1 bn (€890 mln), reflecting the increase in AUM, accounting for 76% of the company's revenue. Fees are expected to continue to be the main source of income in the long term. Overall revenues increased by 7% to CHF 1.37 bn (€1.18 bn).
Partners Group said it generated demand by broadening its range of private debt offerings, as clients looked to take advantage of higher yields than those offered by fixed income investments and floating base rate. The company said it had also successfully deployed its clients' capital in attractive private market assets.
EBITDA increased by 7% to CHF 882 mln (€784 bn), while profits were up by 2% at CHF 796 mln (€707 mln). The company is proposing a dividend per share of CHF 22, compared to CHF 19 in 2017.
David Layton, partner and co-CEO, said: 'The private markets industry is confronted with increased complexity, mainly driven by economic challenges, disruption across many industries, intense competition and structurally high valuations.
'In this market environment, we continue to focus on developing clear, value creation-focused investment theses for target assets long before they are available for investment. This is a prerequisite to accessing leading businesses globally in an increasingly crowded market.'