Partners Group Holding AG, a Swiss money manager focused on private equity, reported client inflows at the lower end of its target range and said it’s becoming harder to find investments with attractive valuations.
First-half inflows were 2.2 billion euros ($2.9 billion), compared with the firm’s annual target of 4 billion euros to 6 billion euros of net new money, the Zug, Switzerland-based company said in a statement today. The stock slumped the most in more than four years.
“Today’s reported numbers were at the lower end of market expectations,” Peter Casanova, head of equity research at J. Safra Sarasin Holding Ltd., said in a note to clients.
Partners Group declined 6.2 percent to 254.5 Swiss francs ($268) at 11:35 a.m. in Zurich, the biggest intraday drop since July 8, 2009, paring the stock’s advance to 21 percent this year, compared with a 16 percent gain in the Stoxx 600 Financial Services Index.
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 in assets under management. Investors are paying more for assets in private markets as it’s hard to find good returns, co-Chief Executive Officer Andre Frei said today.
“Although Partners Group sees attractive investment opportunities, they are also aware of the increased valuations which in our view indicates a moderate capital raising in line with company targets,” said Teresa Nielsen, an analyst at Vontobel Holding AG in Zurich with a hold rating on the stock.
Partners Group, co-founded by former Goldman Sachs Group Inc. banker Alfred Gantner in 1996, invested $3.3 billion across all regions, including 39 direct investments, during the first half of the year.
“The desperate search for yield within the investment community has driven up prices across markets, making it exceedingly difficult to find high-quality assets at low valuations,” Frei said in the statement.
Assets under management were 30.3 billion euros on June 30, compared with 28.6 billion euros six months earlier, according to Partners Group.