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.
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