Partners Group Says First-Half Performance Fees Decline

Partners Group Holding AG (PGHN), a Swiss money manager focused on private equity, reported a decline in performance fees and a weaker first-half revenue margin. The shares dropped the most in almost five years.

Performance fees slid 35 percent to 13 million Swiss francs ($13.9 million), depressing the firm’s margin on revenue to 127 basis points, from 137 basis points a year earlier, the Zug, Switzerland-based company said today in a statement. A basis point is one hundredth of a percentage point.

Performance-related income was the “main miss,” and margins were lower than expected, Teresa Nielsen, an analyst at Vontobel Holding AG (VONN) in Zurich, wrote in a note to clients. Nielsen has a hold rating on the stock.

Partners Group, which has about two-thirds of its investments in private equity and the rest in real estate, corporate debt and infrastructure, is targeting growth in the Americas to help reach a goal of 50 billion euros ($66 billion) in assets under management.

The company fell 8.7 percent to 226.4 francs at the close of trading, the biggest drop since October 2008, valuing the company at 6 billion francs.

Net income advanced to 156.5 million francs from 120.4 million francs in the year-earlier period with recurring revenue from management fees increasing 13 percent to 195 million francs.

“Global pension markets, our dominant client sector, continue to grow,” Andre Frei, co-chief executive officer, said in the statement.

Assets under management rose 5.9 percent to 30.3 billion euros after first-half inflows of 2.2 billion euros lifted by corporate and public pension funds, Partners Group reported in July.

To contact the reporter on this story: Giles Broom in Geneva at gbroom@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.