The Zug-based private markets firm attracted new money and increased assets under management in the first half of the year. It sees «structural tailwinds» for private markets. 

Partners Group said client capital commitments totaled $8 billion in the first half of 2023, down from $13 billion in the year-ago period, and that it had $141.7 billion under management, improving from $135.4 billion at the end of last year. CEO David Layton reiterated guidance that there is potential to increase assets under management by 10 to 15 percent annually, according to a statement Thursday evening. 

Pricing Phase

While capital commitments were slightly below expectations, assets under management increased above expectations. The company received $5.4 billion from the sale of investments in the first half. 

Bid-offer spreads remained wider throughout the first half, «reflecting the typical process of price finding following periods of change in macroeconomic parameters, including rate recalibrations. Based on a robust demand pipeline and the expected normalization of client conversion periods,» according to the statement.

«Over the last two months, we have observed a normalization of conversion periods for client commitments and our outlook on fundraising remains positive for the remainder of the year. We remain strongly positioned in this new environment and are committed to delivering 10-15% AuM growth on average in the years to come,» Layton said.

More Money Inflows

The breakdown of the $141.7 billion of AuM shows that private equity makes up more than half with $74.3 billion in the first half, up 13 percent from the level at the end of December. Private debt also increased 13 percent to $28.9 billion from $26.8 billion at the end of 2022. Private infrastructure showed the largest gain with 13 percent and AuM rising to $21.8 billion, up one billion dollars compared to year-end results. 

Reflecting a more subdued real estate market, Partners Group saw a more modest increase in private real estate AuM to $16.8 billion versus $16.5 billion according to the report. 

For the full year, the Group expects a further inflow of new money, with capital commitments of $17 billion to $22 billion.

Full half-year results on September 5, 2023.