SWITZERLAND - The alternative asset manager Partners Group has reported a growth in assets under management to CHF24.9bn (€16.5bn) to June 30.

Negative market developments and foreign exchange effects cut in on the CHF1.4bn of inflows Partners Group raised in the first six months.

Therefore, the actual asset growth only amounted to CHF600m from the 2008 year-end figure.  (See earlier IPE article: Partners grows AuM by 32%

“Despite the extraordinarily difficult fundraising environment in the first six months of the year, the new money inflows confirm the target of CHF3-4bn in gross new money set for 2009,” the asset manager noted.

It added the number of long-term mandates had grown considerably over the last years with 88% of assets under management now being based on long-term management contracts, compared to 67% at the end of 2006.

Partners Group also pointed out it was “currently investing in a number of specific opportunities offered by the market dislocation” but did not give any details.

“Our clients are increasingly addressing inflation-related issues and as an inflationary hedge we recommend investing in real assets such as real estate, infrastructure and resources as well as mezzanine products which offer a variable base rate,” said Marcel Erni, co-founder and chief investment officer (CIO) at Partners Group.

“We are seeing an increasing appetite amongst clients for our products of this nature and we additionally see an increased interest for tailor-made mandates, allowing investors to gain specific private markets exposure through separate accounts.”

Currently Partners Group has invested CHF19.6bn in private equity, CHF2.6bn in private debt, CHF800m in private real estate, CHF300m in private infrastructure and CHF1.6bn in public markets, “comprising absolute return strategies, listed alternatives and the independent private wealth management division”.