The Swiss asset manager stumbled in the pandemic's first year. It will also abandon a two-structure in favor of a single leader.
After initial data in January, Partners Group on Tuesday confirmed that its profits fell 11 percent on the year to 805 million Swiss francs ($867 million), as performance fees shrank by nearly half, in a statement on Tuesday. Its profit before interest and tax slid 13 percent.
Undeterred, the Zug-based manager of alternative assets said it will hike its dividend to 27.50 francs per share, from 22 francs in 2019. Partner and co-CEO David Layton said «though Covid-19 is not entirely behind us, we look confidently ahead» following a second-half recovery.
2021 Targets Backed
The pandemic hurt Partners in that it had to push back planned disposals or investment exits due to the sickly market for them. The second half saw a thaw, which quickly translated to a recovery in its performance fees. The company's assets also rose 16 percent to $109.1 billion. Partners said it is confident to take in up to $20 billion this year, confirming its outlook.
The asset manager said it will ditch a co-CEO structure that has been in place since 2013. Layton (pictured below), a 39-year-old American who has been with Partners since 2005, will take over alone, from July. Co-CEO, André Frei will leave top management to chair the company's sustainability, overseeing environmental, social, and governance efforts and and stakeholder impact initiatives.
Risk boss Michael Studer will relinquish his role as portfolio solutions co-head, but devote more time to strategic portfolio management. His co-head in the solutions job, Roberto Cagnati, will become sole head and join top management.
The current co-heads of European client solutions, Sarah Brewer and Guido Koch, will take the role globally. The current client solutions head, Stefan Naef, will take a new role as chairman of clients and devote more time to key Partners Group client relationships.
