SWITZERLAND - Swiss alternative asset manager Partners Group said demand in its core private markets such as private equity and private debt did not falter in 2008, reporting a 32% increase in assets under management (AuM) at the end of 2008.
The manager today revealed it raised CHF6.2bn (€4.2bn) in 2008, representing an asset inflow of 32% in its core private markets, though noting it had raised most of those assets in the first half.
That said, according to Partners overall AuM development was impacted by "extraordinary effects during 2008", primarily steming from adverse foreign exchange developments.
"The strong growth in the core private markets segment has resulted in an increased duration of AuM, with long-term assets rising from 73% as of the end of 2007 to 86% at the end of 2008, while public market assets now only amount to 7% of total AuM," the group said in a statement.
The manager added its portfolios have only limited exposure to the highly-leveraged and large buyout transactions completed during 2006 and 2007.
"Significant investment opportunities currently arise from distressed sellers seeking liquidity, and Partners Group, with CHF7bn of uninvested capital, is ideally positioned to profit from this extraordinary environment in which liquidity constrained market participants have to sell quality assets at significant discounts to fair market value," the firm concluded.
Partners Group currently has CHF24bn in investment programmes under management, with CHF19.2bn in private equity, CHF2.6bn in private debt, CHF500m in private real estate, CHF300m in private infrastructure and CHF1.8bn in public markets, comprising absolute return strategies, listed alternatives and the independent private wealth management division.
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