Bilge Ogut Head Private Equity Technology | Christopher Russell Private Equity Technology
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As of 31 December 2021
Annual Report 2021
Contents
Key figures
Message from the Chairman and CEO
2021 at a glance
Investments
Clients
Client outlook
Financials
Key definitions and alternative performance metrics (APM)
Consolidated financial statements
Financial statements of Partners Group Holding AG
Compensation Report
Corporate Governance Report
Contacts
4
6
9
15
18
21
30
32
108
124
148
178
As our firm continues to grow, we remain committed to driving
forward our strategy of delivering sustainable returns through a
focus on transformational investing, bespoke client solutions, and
positive stakeholder impact.
2021 was a record year for the private markets industry and was
a particularly successful year across all metrics for Partners Group.
We experienced strong portfolio performance which resulted
from our rigorous asset selection process and hands-on value
creation approach. On the investment side, we took advantage
of the robust market momentum to transact on our thematic
pipeline. On the divestment side, we translated the very benign
exit environment and the strong demand for our quality assets
into significant performance fee growth.
Partners Group | 3
ANNUAL REPORT 2021 Key figures 2021
1’573
20
USD
127
billion
2.41%
full-time equivalent
professionals1)
offices around
the world
assets under
management1)
revenue margin 2), 3)
CHF
2’629
million
CHF
1’650
million
CHF
1’464
million
CHF
33.00
per share
revenues 2)
EBIT
profit
proposed dividend
Total AuM1)
(in USD bn)
83
74
57
127
109
94
Number of full-time equivalent professionals1)
1’519
1’573
1’452
1’190
1’025
909
2016
2017
2018
2019
2020
2021
2016
2017
2018
2019
2020
2021
Profit
(in CHF m)
Share price development as of 31 December 20214)
1’464
752
769
900
805
558
400%
300%
200%
100%
0%
-100%
Partners Group
LPX50⁵⁾
2016
2017
2018
2019
2020
2021
2016
2017
2018
2019
2020
2021
1) As of 31 December.
2) Revenues from management services, net, and other operating income.
3) Based on average AuM of CHF 109.3 billion, calculated on a daily basis.
4) Indexed at 100 as of 31 December 2015.
5) LPX50TR is the Listed Private Equity Index (EUR).
4 | Partners Group
ANNUAL REPORT 2021 Key figures 2021
Key performance indicators
Assets under management as of the end of the year (in USD bn)
Revenue margin1),2)
Revenues (in CHF m)2)
EBIT margin
EBIT (in CHF m)
Financial result (in CHF m)
Profit (in CHF m)
Management Fee EBIT (in CHF m)3)
Net cash position at end of year (in CHF m)3)
Shareholders’ equity (in CHF m)
Return on shareholders’ equity (ROE) 3)
Equity ratio 3)
ANNUAL REPORT 2021
2021
127.4
2.41%
2'629
62.8%
1'650
76
1'464
895
1'601
2'898
57%
60%
2020
109.1
1.51%
1'412
62.0%
875
53
805
711
1'102
2'275
35%
56%
1) Based on average AuM of CHF 109.3 billion in 2021 (2020: CHF 93.8 billion), calculated on a daily basis. 2) Revenues from management services, net, including other operating income.
3) As defined in the "Key definitions and alternative performance metrics" section of the Annual Report 2021 (p. 30).
Share information as of 31 December 2021
Share price (in CHF)
Total shares
Market capitalization (in CHF bn)
Free float1)
Diluted shares (weighted average)
Diluted earnings per share (in CHF)
Dividend per share (in CHF)2)
Dividend yield per share3)
Bloomberg ticker symbol
Reuters ticker symbol
1’512.5
26’700’000
40.4
84.96%
26’552’523
55.12
33.00
2.2%
PGHN SW
PGHN.S
1) According to the SIX Swiss Exchange definition. 2) As per proposal to be submitted to the next ordinary Annual General Meeting of shareholders on 25 May 2022. 3) Yield as of
31 December 2021.
Corporate calendar
25 May 2022
30 May 2022
31 May 2022
1 June 2022
14 July 2022
30 August 2022
6 September 2022
Annual General Meeting of shareholders
Ex-dividend date
Dividend record date
Dividend payment date
Assets under management announcement as of 30 June 2022
Publication of Interim Financials as of 30 June 2022
Publication of Interim Report as of 30 June 2022
Partners Group | 5
ANNUAL REPORT 2021
Message from the Chairman and the CEO
Steffen Meister Executive Chairman, David Layton Chief Executive Officer
Dear clients, business partners,
shareholders, and colleagues,
2021 was an exceptional year for Partners Group, which
showed the true potential of the platform we have been
building for over two decades. As confidence returned,
investment activity in private markets has picked up.
Our thematic investing approach and entrepreneurial
governance model enabled us to successfully navigate
a very competitive market and we invested a record
USD 32 billion into companies and assets that we
believe are well-positioned for future growth.
Additionally, we took advantage of the strong market
appetite for quality assets to realize the transformational
business-building we have engaged in over the last few years
through a series of exits. This resulted in USD 29 billion of
realizations – another record – leading to excellent returns for
our clients, stakeholders, and beneficiaries, while confirming
the high-quality value creation we have engaged in.
On the client side, we continued to see robust demand
for our wide range of private markets offerings. Demand
was well diversified across all private markets asset
classes, with clients entrusting us with USD 25 billion
in new capital commitments.
Based on the solid development of the business across
asset classes and regions, the operating result and Partners
Group’s Board of Directors' confidence in the sustainability
of this growth, the Board will propose a dividend of CHF
33.00 per share to shareholders at the Annual General
Meeting in May 2022.
Today, we look ahead with confidence in our business.
While there are clearly clouds on the horizon – a potentially
prolonged period of market volatility and geopolitical
instability, inflation, and supply chain disruptions – our
unique approach to transformational investing remains
the best defense against economic instability.
Transformative trends continue to perform strongly
With downside risks to macroeconomic fundamentals
dominating, we maintain a strong conviction in our strategy
of transformational investing, which combines thematic
sourcing with a hands-on value creation approach. We
focus on sectors and areas of the economy that have the
potential to grow at above-average rates over a period
of at least five to ten years.
The three overarching giga themes that we believe are
driving structural change and secular growth – Digitization
& Automation, New Living, and Decarbonization &
Sustainability – further accelerated in 2021. These themes
underscore our thematic investing approach and shape
the landscape of opportunities we prioritize across private
markets asset classes. We build our investment pipeline
based on these themes – within private equity, for example,
we pursue 40 to 60 specific themes at any given time.
This thematic sourcing results in a steady and predictable
pipeline of lead direct investment opportunities, which
currently stands at around USD 175 billion of investment
volume across our platform.
Last year, we committed to new high-quality investments
across all private markets asset classes. For example, within
private equity, a key theme within commercial services has
been the growing trend towards outsourced maintenance
of critical equipment. To access this theme, Partners
Group acquired a controlling stake in DiversiTech, a US
6 | Partners Group
ANNUAL REPORT 2021 Message from the Chairman and the CEO
ANNUAL REPORT 2021
manufacturer and supplier of parts for heating, ventilation,
and air conditioning equipment. In private infrastructure,
rapidly rising data consumption globally has highlighted
the essential nature of broadband networks, leading to our
investment in EOLO, a fixed wireless access provider in Italy
that utilizes fixed wireless access technology to bridge the
digital divide between the rural and metro areas in Italy.
Within private real estate, sustained growth in e-commerce
continues to fuel demand for logistics assets located near
urban centers. To further increase client exposure to this
theme, we invested into a diversified UK Logistics Portfolio.
Continued market demand for quality assets
At Partners Group, we are business builders, dedicated to
transforming attractive companies and assets into market
leaders. Last year provided a positive environment for
exiting many of our more mature assets, which had
benefitted from substantial value creation, and realizations
from our underlying portfolio reached a new record. For
example, we completed the sales of Cerba HealthCare,
a leading European player in medical diagnosis, and
GlobalLogic, a leading digital engineering services company
helping businesses navigate the digital transition, for a
combined enterprise value of USD 15 billion.
Strong demand for our private markets solutions
Our total assets under management at the end of 2021
increased by 17% year-on-year, reaching USD 127 billion. In
a year that saw demand coming from a broader client base
than ever, it is clear that the trend towards bespoke client
mandates, an area in which Partners Group has been an
industry pioneer, has continued to prove a differentiator for
our firm. Today, our bespoke client solutions include single-
and multi-asset class private markets mandates and evergreen
programs where we actively manage and steer their exposure
to private markets in line with longer-term investment
horizons. Our bespoke client solutions continued to grow at
a faster rate than overall AuM and now represent 64% of the
assets we manage on behalf of our clients.
Translating portfolio performance into
shareholder returns
We are pleased to report that this exceptional set of results
across the board has led to strong financials in 2021.
Substantial underlying portfolio realizations translated into
significant performance fee growth over the period with
performance fees increasing to CHF 1'197 million in 2021
(46% of revenues) from CHF 266 million in 2020 (19% of
revenues). Due to the "catch-up" in exit activities that had
been postponed from 2020 following the outbreak of the
COVID-19 pandemic, as well as select realizations originally
planned for 2022 that were brought forward because the
firm had already met its value creation targets, we had
guided for performance fees to be between 40-45% of
total revenues. In the mid- to long-term, we retain our
guidance that performance fees will account for 20-30%
of total revenues.
As a result, total revenues rose 86% to CHF 2'629 million
in 2021. We maintained a disciplined approach to cost
management, but we continued to invest in the future growth
of our business, leading total costs to grow in line with
revenues and EBIT to increase by 89% to CHF 1'650 million.
This resulted in a stable EBIT margin, which stood at 62.8%.
During the period, our transformational investing strategy
facilitated substantial value creation in our investment
programs for clients and resulted in an average return across
all stages and asset classes of 16% on our own investments
on the balance sheet alongside our clients. As a result, profit
increased by 82% year-on-year to CHF 1'464 million, in line
with revenues.
Update on stakeholder impact
Creating lasting, positive impact for all our stakeholders is key
to generating sustainable returns. In 2021, Partners Group
became the only global private markets firm to be included
in the Dow Jones Sustainability Indices, which assess the
performance of companies against a defined set of economic,
environmental, and social criteria. This is an important
recognition of our firm's position as a corporate sustainability
leader in private markets.
We took significant steps last year to further advance
our approach to sustainability. This included publishing a
climate change strategy that outlines the steps we are taking
to reduce carbon emissions across our organization and
investment portfolio; ensuring ESG criteria are integrated
throughout the entire investment process for 100% of
Partners Group's assets under management; introducing
new initiatives to substantially increase the diversity of
professionals at the firm; and establishing best-in-class talent
attraction and retention programs through our PG Academy
learning and development platform.
Building on these successes, we are in the process of
finalizing our Sustainability Strategy, which will expand
our leadership role in this area. Covering both our firm
and our portfolio companies, the Strategy is built around
Partners Group | 7
ANNUAL REPORT 2021 ANNUAL REPORT 2021
Message from the Chairman and the CEO
Group professionals. We are confident that success in these
areas is the key to unlocking even more value and we look
forward to reporting back to you on these focus areas in
the coming years.
In closing, we would like to highlight one of our most
important assets – our employees. The growth of our
business last year would not have been possible without the
hard work and dedication of our colleagues, who have shown
strength in adversity throughout the global pandemic. In the
name of the Board and the Executive Team, we would like
to thank them once again for their contribution.
As ever, we remain committed to creating lasting, positive
impact for all our stakeholders and thank you for your trust
in our firm.
Yours sincerely,
Steffen Meister
Executive Chairman
David Layton
Chief Executive Officer
environmental, social, and governance priorities, including
tackling climate change and carbon reduction; realizing
employees' potential; creating positive stakeholder
impact; and achieving ownership excellence and
sustainability at scale.
We will publish our Corporate Sustainability Report in
April 2022 with further details on how we plan to extend
our thought leadership in the space.
War in Ukraine
Just a few weeks ago, the unspeakable attack on Ukraine
brought to an end our previous understanding of European
political stability. The human tragedy caused by this crisis
is, of course, forefront in our minds and we have been
leveraging our global network of portfolio companies
and business partners to respond to the urgent need for
humanitarian aid. Our efforts so far have included delivering
food, water, and medical supplies to Ukrainian citizens and
donating warehouse space to the Polish Red Cross.
While we have marginal direct investment exposure to
the region, as far as the potential wider repercussions are
concerned, it is too soon to assess the economic and political
impact the war in Ukraine will have in Europe and globally,
but we will likely enter a phase of increased volatility.
Outlook
We are confident in the long-term outlook for private
markets, an industry we believe will grow to USD 30 trillion
assets under management in the next decade. Private markets
are, in our view, becoming the new 'traditional' asset class,
offering tremendous investment opportunities for firms like
ours. It will, however, be a market characterized by increased
competition, growing regulatory scrutiny, and increasingly
specialized market participants. In this environment, firms
like Partners Group – well-resourced active managers that
focus on thematic sourcing, value creation capabilities, and
an entrepreneurial governance approach – will be greatly
positioned to navigate these challenges and continue to
deliver sustained outperformance to their clients, at scale.
To continue capturing the opportunities represented by the
growth of private markets and remain a leader in the industry,
we are evolving our firm, building on our proven strengths
of leading investment capabilities, a differentiated client
offering, and solid operations.
We have identified six strategic focus areas that will support
the sustainable and profitable growth of our firm, on behalf
of our clients, business partners, shareholders, and Partners
8 | Partners Group
2021 at a glance – Investments
Investment environment
2021 was a record year for the private markets industry
and was a particularly successful year across all metrics for
Partners Group. We experienced strong underlying portfolio
performance and took advantage of the robust market
momentum to transact on our thematic pipeline. This allowed
us to invest a record USD 32 billion into companies and
assets that we believe are well-positioned for future growth,
while exercising high selectivity and discipline on pricing.
In this competitive environment, we remain true to our
belief that "thematic investing is key to unlocking value": we
seek opportunities to build resilience instead of buying it
by focusing on assets with value creation potential in sub-
sectors with above-average, consistent growth rates. We are
very selective and source thematically in order to identify
these sub-sectors. We then leverage our entrepreneurial
governance approach to create market-leaders through
business transformation and platform development, leading
to long-term value creation for our clients.
Portfolio performance
In 2021, our private markets portfolio continued to perform
well. Our portfolio performance was based on our thematic
sourcing, rigorous asset selection process and hands-on value
creation approach. The portfolio net performance overview
for the twelve-month and ten-year period ending on 31
December 2021 is provided in the following table.
Investments
We invested USD 32 billion
in attractive transformative
companies and assets.
Direct portfolio performance track record 1), 2)
Private equity
Private debt
Private infrastructure
Private real estate
1-year
26.0%
9.3%
9.7%
13.8%
10-year
19.9%
6.4%
13.5%
9.4%
1) Currencies were converted to USD based on 31 December 2021 FX rates.
2) Model net returns assume Partners Group‘s standard management and performance fees
and do not include the impact of factors such as taxes incurred by investors, organizational
expenses, search fees, ongoing operating costs or expenses incurred by the program, etc.
The performance presented reflects model performance an investor may have obtained and
does not represent performance that any investor actually attained. Return figures denote
annualized pooled internal rates of returns (IRR) of direct investments in the respective
asset classes. Private real estate includes all investments underlying Partners Group‘s Real
Estate Opportunity (REO) strategies, representing private real estate direct investments and
(direct) secondary investments.
Private equity
Partners Group's direct private equity portfolio achieved
a strong net performance of 26.0% during 2021. Record
investment activities were supported by strong underlying
operational performance, increasing the adjusted EBITDA of
our direct lead portfolio by 25%1. The changing investment
environment has created challenges but also opportunities.
Contrary to what the market originally expected, valuations
for quality companies have not experienced a correction
but were rather at new record highs. Our private equity
investment strategy remains very disciplined: we invest in
themes that offer clear resilience and companies where
we are in a position to create fundamental value at the
asset level. Our current investment focus themes include
robotic process engineering within our technology vertical,
1 Based on last twelve month ended as of 30 June 2021 adjusted EBITDA, NAV weighted
year on year % change.
Partners Group | 9
ANNUAL REPORT 2021 2021 at a glance – Investments
Investments in 2021
During 2021, we invested a total of USD 31.7 billion (2020:
USD 10.3 billion) on behalf of our clients across all private
markets asset classes. We had a strong year for new
investments, which is partially a result of some catch-up
effects from the prior year period that was affected by the
pandemic.
Partners Group’s private markets investments 1)
(in USD bn)
31.7
21.7
13.6
H2
H2
H1
H1
11.7
H2
H1
H2
8.6
H1
17.0
H2
H1
10.3
H2
H1
2016
2017
2018
2019
2020
2021
1) Figures include add-on investments but exclude investments executed for short-term loans,
cash management purposes, and syndication partner investments. As of 31 December 2021
private markets investments 2016–2021 also include assets raised in the liquid loans
business (“BSL”) during the period, which includes collateralized loan obligations and net
inflows into dedicated liquid loan investment vehicles.
The firm invested USD 20.8 billion, on behalf of our clients,
(66% of total investment volume) into direct assets, of which
USD 17.6 billion was committed as equity with a focus on
value creation through entrepreneurial governance and USD
3.2 billion was committed to corporate direct lending.
To complement our direct investments, we invested USD
10.8 billion, on behalf of our clients, (34% of total investment
volume) into portfolio assets. These portfolio assets include
USD 5.2 billion of secondary investments into globally
diversified private markets portfolios, USD 2.6 billion of
select primary commitments to other complementary
private markets strategies, and USD 3.0 billion into broadly
syndicated loans.
alternative protein production in goods & products, mission-
critical utility maintenance in services, and small-molecule
contract development and manufacturing organizations in
our health & life vertical.
Private debt
Following a swift normalization, private debt ended 2021
with a net performance of 9.3%. Our private debt strategy
continues to be guided by our thematic approach, negotiation
of tight credit documentation and favorable economics, and
our ownership mentality. We do not foresee a fundamental
alteration in our investment approach but continue to
move up the capital structure in our direct lending with
a greater focus on senior secured debt, such as first lien
and unitranche. We remain focused on investments where
the level of return is commensurate with the level of risk.
This conservative investment philosophy is implemented
with an in-depth due diligence process in order to focus on
resilient sectors, such as technology, services, software, and
healthcare, which have lower relative exposure to economic
variances and commodity price-related industries, in a broadly
diversified portfolio. We would generally expect our debt
strategies to experience less volatility as a result of the focus
on high quality, non-cyclical businesses.
Private infrastructure
Partners Group's direct private infrastructure portfolio
achieved a net performance of 9.7% during 2021. The
acceleration of certain structural changes brought forward
a window of opportunity to deploy capital into the next
generation of infrastructure. One example of these changes
is a trend towards sustainability, which shapes our investment
approach and underpins our thematic focus. The current
market is priced to perfection and the risk of inflation
continues to be a pertinent factor; our preferred approach
revolves around platform strategies in high conviction
themes. This conviction produced strong results in 2021 as
our portfolio benefitted from our investments in industrial
carbon capture, wastewater treatment, and "green" data
centers.
Private real estate
In 2021, our private real estate opportunity strategies
achieved a net portfolio performance of 13.8% during
the year. There remains a strong appetite for quality
assets in good locations, by a variety of yield seeking
investors. Our 2021 performance results were underpinned
by a focus on our preferred themes of residential-for-rent,
high-quality logistics, and specialized high-quality offices
in the medical space.
10 | Partners Group
ANNUAL REPORT 2021
2021 at a glance – Investments
ANNUAL REPORT 2021
Private markets investments by region and asset class1)
(in USD bn)
Portfolio
assets
34%
Sec.
16%
Prim.
8%
BSL
10%
USD
32 billion
Equity
56%
Debt
10%
Direct
assets
66%
Asia-Pacific/
Rest of World
9%
North
America
50%
USD
32 billion
Europe
41%
1) Figures include add-on investments but exclude syndication partner investments. Direct
equity investments include all direct private equity, direct infrastructure, and direct real
estate investments (including direct secondary transactions where Partners Group has a
controlling interest). Private debt investments include direct lending investments ("direct
debt") as well as assets raised in the liquid loans business ("BSL") during the period, which
includes collateralized loan obligations and net inflows into dedicated liquid loan investment
vehicles.
The US was the most active region for our investment
business during 2021, accounting for 50% of all investment
commitments vs. 41% in Europe and 9% in Asia-Pacific / Rest
of World.
Select private markets investments in 20212
Private equity
In 2021, we invested USD 16.0 billion in private equity,
prioritizing investment opportunities that offer a combination
of both resilience and growth. In order to source assets with
these components we performed due diligence on hundreds
of investment themes, which are underpinned by long-term
secular trends. We currently zoom in on more than 50 of
them, which are subsequently grouped into our four verticals:
Health & Life, Techonology, Goods & Products, and Services.
One investment theme that we have focused on for a while is
asset and utility maintenance. We concentrate on those asset
and utility maintenance businesses looking after mission-
critical equipment. One example that fits squarely into this
theme is our investment in DiversiTech, a leading heating,
ventilation, and air conditioning (HVAC) parts manufacturer
and supplier in November 2021.
DiversiTech is headquartered in Atlanta, Georgia and provides
HVAC services and parts to over 6,000 clients throughout
the US, Canada, and the UK. The company offers over 200
product categories leading to supply chain cost advantages
for its clients.
DiversiTech is an attractive investment given its entrenched
leadership position in the systematically complex US
residential HVAC value chain and its growth track record
of outgrowing the broader HVAC market for over 15 years.
Alongside the management team, Partners Group will
2 All Partners Group investments and divestments mentioned herein were made on behalf
of the firm’s clients, not on behalf of Partners Group Holding AG or any of its affiliates.
leverage DiversiTech's leading product category positions
to gain wallet share with customers in other categories by
accelerating new product development, expanding through
M&A, and bolstering internal manufacturing capabilities.
Private debt
We invested USD 6.3 billion in direct lending and broadly
syndicated loans in 2021. In the current market, we remain
focused on providing new or incremental financing to
category leaders in non-cyclical, defensive, sponsor-backed
businesses. Capital preservation is key in private debt
investing and we therefore follow our proven strategy and
focus on investing across our current investment themes. For
example, advancing the sustainability agenda by rewarding
positive environmental, social and governance (ESG) behavior,
which in turn improves the overall risk-return profile of a
credit. A recent debt investment example with an ESG-linked
margin ratchet is the unitranche financing that we provided to
Kusters Beheer.
Headquartered in Oss, the Netherlands, Kusters Beheer
produces fine mechanical components and modules primarily
for use in high-tech industries. In line with our process, we
defined a set of relevant, meaningful, and challenging KPIs
that are appropriate for the issuer, aspirational yet reasonably
attainable, and can be independently measured. ESG
considerations that are material to Kusters Beheer include
energy consumption, waste management, occupational health
& safety, and business ethics & governance.
Another theme that we are focused on is providing tailor-
made solutions, to complex transactions. In order to generate
attractive risk-return profiles, we create bespoke finance
solutions which equity investors are willing to pay a premium
for. A recent example of this is the senior financing that
we provided to support the acquisition of Ligentia. We
were able to provide pricing and structural flexibility in the
documentation to allow for attractive senior pricing and
mechanisms for future acquisitions. Our proactive approach
allowed us to be the sole lender in the financing.
For all of our investments we stayed in line with our three-
prong strategy, by using our thematic approach to find
companies in sectors with above-average resilience, investing
in debt tranches where we are able to negotiate tight credit
documentation and favorable economics, and adopting an
ownership mentality.
11 | Partners Group
2021 at a glance – Investments
Colorado Boulder. The current life science space in the region
is fully leased and there is only one new development under
construction, demonstrating the strength of tenancy and the
current undersupply of specialty, high-quality office spaces
in the area.
Life science office space
Private infrastructure
In 2021, we invested USD 5.4 billion in private infrastructure.
Our thematic investing approach in private infrastructure
focuses on above-average growth segments that benefit
from transformative trends. Within these growth segments,
amongst others, we seek out industrial carbon capture and
storage assets, data centers, ready-to-use modular facilities,
and wired & wireless infrastructure assets. During the
pandemic, the essentiality of digital infrastructure became
more evident as we all needed to connect virtually for day-to-
day activities. High-speed wireless connections also opened
up new business opportunities such as wireless broadband
provision. To tap this fast-growing market, we invested in
EOLO, a leader in the Italian fixed wireless access market with
an 80% population coverage from a proprietary network.
This investment is underpinned by a transformational value
creation plan that will include densification of the company's
unique fixed wireless access network, further expansion into
underserved rural areas, and development of the company's
wholesale customer base.
Another recent investment made under our decarbonization
& sustainability theme was our acquisition of Dimension
Renewable Energy. Dimension is a US community solar
and battery storage platform with more than 800MWs of
community solar projects under development across nine
states in the US. The company embodies our vision of making
renewable electricity directly accessible to more households
and businesses to accelerate the energy transition by
developing community-based projects.
Ligentia
Private real estate
We invested USD 3.9 billion in private real estate in 2021.
The real estate market has experienced a profound shift over
the last two years with capital increasingly flowing towards
residential and industrial sectors. As people spend less time
in the office and more time at home, demand for larger,
amenity-rich residential units is increasing.
To meet increasing demand for rental units, a key growth
theme we have been looking at is the build-to-rent sector in
under-supplied European markets. One such market is Spain,
where the growing preference for renting rather than owning
properties is expected to underpin strong demand for rental
units in years to come. To access this theme, we recently
launched a new EUR 400 million real estate platform called
Nuva Living to invest in build-to-rent and private-rented-
sector assets located in Spain. Nuva Living already holds a
portfolio of approximately 200 homes and is targeting 1,500
units in prime locations within the next five years. This is
an opportunity to assemble a portfolio of residential assets
that are strategically located, high-quality, and affordable
for middle-income earners. Multifamily rent is expected to
continue along a strong growth trajectory as rising house
prices make buying less affordable and increase demand for
rental units.
Another theme we have been following is the demand for
high-quality offices in central locations. Beyond traditional
office space, we see thematic investing opportunities in the
life sciences sector. On a macro level, a record of USD 70
billion went into life sciences-related companies in the US
in 2020, a 93% increase from 2018. To capitalize on these
tailwinds, we invested in a life science real estate portfolio
in Boulder, Colorado at the end of 2021. This investment will
involve the redevelopment of a seven-building life science
business park. Boulder is one of the key small life science
markets in the US and offers relative affordability whilst
having access to a deep talent pool from the University of
12 | Partners Group
ANNUAL REPORT 2021 2021 at a glance – Investments
additional software designers, engineers, and data experts.
We completed four strategic add-on acquisitions globally,
thereby expanding GlobalLogic's services footprint and
engineering capabilities and supporting revenue growth.
Additionally, we have enhanced the Company's focus on
ESG initiatives, helping the company to establish a dedicated
ESG function and mid-term strategy. Our investment in
GlobalLogic generated an average gross multiple in excess of
5.0x for Partners Group's clients and co-investors. Further to
this, a number of non-C-level employees across GlobalLogic
benefitted from this sale, as Partners Group allocated equity
to them to further incentivize successful value creation.
In 2021, we also completed the sale of Cerba HealthCare,
a leading European player in medical diagnosis, for an
enterprise value of over EUR 4.5 billion. During our
ownership, we led Cerba's successful consolidation strategy
within France. We also penetrated new international markets,
including Italy and Africa, and launched a strategic initiative to
expand Cerba into an adjacent category of veterinary testing
services, where we had already achieved a leadership position
in France by the time of our agreed sale. Last but not least,
we steered the successful repositioning and expansion of
Cerba's research business for biotech and pharma companies.
During this past year, we expanded Cerba's core processing
capacity dramatically to keep up with demand for COVID-19
testing. Cerba now stands as a uniquely placed company
in the European medical diagnostics market, supplying
diagnostic tools and providing critical expertise to patients,
physicians, hospitals, and the pharmaceutical industry.
Our investment in Cerba has generated an average gross
multiple of more than 2.5x for Partners Group's clients and
co-investors.
Cerba Healthcare
Partners Group | 13
Dimension Renewable Energy
Realizations in 2021
Our portfolio performance has been strong during 2021 as
we continued to see solid value creation generated by our
transformational investing approach. Supported by robust
demand for quality assets, a catch-up in exit activities from
2020, and the bringing forward of a portion of the 2022
exit pipeline, we agreed the sales of a number of mature
private markets assets, leading to a total of USD 29.1 billion in
underlying portfolio realizations (2020: USD 11.8 billion).
Exceptionally high underlying portfolio realizations
in 2021
(in USD bn)
➋
29.1
➊ Catching-up in exit activities
➋ Exiting sizeable assets above initial
underwriting expectations
➌ Bringing forward a portion of the exit pipeline
➌
H2
8.6
11.8
H2
H1
13.4
H2
H1
11.0
H2
H1
11.8
➊
H2
H1
H1
2017
2018
2019
2020
2021
2022
One high-profile exit that we closed in 2021 on behalf of
our clients was the sale of a leading US digital engineering
services company GlobalLogic for an enterprise value of
USD 9.5 billion. We applied our entrepreneurial governance
approach to drive several transformational value creation
initiatives and accelerate the company's growth trajectory.
Initiatives included launching dedicated sales strategies
to address niche customer segments, such as facilitating
strategic introductions and building strategic relationships
with over 20 private equity firms, many of which are software
and technology focused. Furthermore, we have transformed
account planning, expanded key accounts, and increased the
client base by almost 20%. During our ownership, we also
increased GlobalLogic's employee base by more than 7,000
ANNUAL REPORT 2021 2021 at a glance – Investments
Other 2021 realizations include the sale of a large-scale US-
based portfolio of industrial real estate with a combined
leasable area of 8.6 million square feet.
The investment has generated an average gross multiple
of more than 2.0x for our clients. We built this portfolio of
quality assets across attractive industrial markets, gaining
exposure to key transformative trends such as the rise of
e-commerce and relatively outsized expansion of regional
growth cities. We are proud to see the transformational
results our team has driven.
US industrial portfolio
We also recently sold Straive, an e-learning and big data
platform. We transformed Straive into a technology-driven
business with strong positions in the research content,
edtech, and data solutions markets. We took Straive's
strengths in process automation and content operations and
applied them to broader end markets with higher growth,
playing into the themes of e-learning and big data. Straive's
organic growth was supplemented by three strategic bolt-on
acquisitions. We successfully exited this investment in 2021.
14 | Partners Group
ANNUAL REPORT 2021 2021 at a glance – Clients
ANNUAL REPORT 2021
Clients
USD 25 billion gross client
demand in 2021; AuM
increased by 17% to
USD 127 billion.
Fundraising environment
We expect the secular growth trajectory of the private
markets industry in general, and for Partners Group in
particular, to continue and fundraising to remain diversified
across regions, asset classes as well as product and client
types.
In the 5-year period ending in 2021, private markets AuM
grew at 14% p.a.3 Over the same period, Partners Group's
AuM grew by 17% p.a. With USD 1'355 billion4 raised in
2021, the private markets industry had a record fundraising
year across all asset classes. The strong fundraising year was
supported by high levels of deployment and solid investment
performance.
In 2021, Partners Group also experienced a solid year of
fundraising based on sustained client demand, receiving USD
25 billion in new commitments. The demand for programs
and mandates brought our total AuM to USD 127 billion as of
31 December 2021 (31 December 2020: USD 109 billion), an
increase of 17%.
The breakdown of total AuM across asset classes as of 31
December 2021 is as follows: USD 63 billion private equity
(49% of total AuM), USD 27 billion private debt (22%), USD
18 billion private real estate (14%), and USD 19 billion private
infrastructure (15%).
AuM by asset class
Private infrastructure
15%
127
109
94
Private
real estate
14%
USD
127 billion
Private equity
49%
Total assets under management¹⁾
(in USD bn)
83
74
57
50
43
45
37
31
28
22 24
18
11
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
6
1
0
2
7
1
0
2
8
1
0
2
9
1
0
2
0
2
0
2
1
2
0
2
1) Assets under management exclude discontinued public alternative investment activities
and divested affiliated companies held up to 2013.
3 Source: Preqin, Alternatives in 2022.
4 Source: Private Equity International, January 2022, Fundraising Report 2021.
Private debt
22%
AuM growth in 2021 was further supported by continued
strong performance across Partners Group's private markets
portfolios, which led to a positive contribution of USD 5.8
billion from a select number of investment programs, which
link AuM to NAV-development; this is referred to as "other"
in the chart below. Partners Group reports fee-paying AuM
and most of the firm's evergreen programs base fees on NAV.
The portfolio performance during the period impacts the
NAV of these products and this translates to a corresponding
change in firm-level AuM. Furthermore, tail-down effects
Partners Group | 15
2021 at a glance – Clients
from mature private markets investment programs amounted
to USD 6.3 billion and redemptions from evergreen programs
to USD 2.0 billion. Foreign exchange effects negatively
impacted underlying AuM growth by USD 4.2 billion, in
particular due to the weakening of EUR against USD. Overall,
this resulted in net AuM growth of USD 18.3 billion during
the period.
Total assets under management development
(in USD bn, except where stated otherwise)
+25.0
-8.3
Tail-downs: -6.3
+1.6
Other: +5.8
= EUR 112.0 bn
127.4 = CHF 116.0 bn
109.1
Redemptions: -2.0
FX: -4.2
2020
New money/
commitments
Tail-downs &
redemptions1)
FX &
other
2021
1) Tail-downs & redemptions: tail-downs consist of maturing investment programs (typically
closed-ended structures); redemptions stem from evergreen programs. Gating provisions
are a standard feature for those evergreens which allow for redemptions; net redemptions
are typically limited up to 25% p.a. of the prevailing NAV (stricter gating rules can be
enforced for select share classes). Gating provisions are a standard feature for those
evergreens which allow for redemptions; net redemptions are typically limited up to 25%
p.a. of the prevailing NAV (stricter gating rules can be enforced for select share classes).
Client demand across all asset classes
Private equity was the largest contributor to assets raised
in 2021, representing 50% (USD 12.4 billion) of all new
commitments. Client demand was seen across the entire suite
of our traditional and bespoke client solutions offerings. On
the traditional offerings side, fundraising was supported by
demand for the firm's fourth buyout program, which closed
in the second half of 2021. On the bespoke client solutions
side, along with the strong growth of mandates and other
open-ended funds, our flagship US evergreen fund was a key
contributor to fundraising, recording one of its highest ever
inflows during the period.
Private debt saw solid inflows, which represented 24% (USD
6.1 billion) of all new commitments. Demand was spread
over several different programs and mandates, including
our collateralized loan obligations (CLO) focused on broadly
syndicated loans (43% of assets raised), as well as our direct
lending activities, which contributed the other 57% of new
commitments. Today, our entire CLO business represents 6%
of our AuM.
New commitments in private real estate represented 9%
(USD 2.2 billion) of overall new client demand, stemming from
a diversified range of investment programs and mandates.
Private real estate is in the midst of marketing its new flagship
16 | Partners Group
fund targeting global real estate opportunities and we expect
the program to be a relevant contributor to fundraising in
2022.
Client demand for private infrastructure represented 17%
(USD 4.2 billion) of all new commitments and was the fastest
growing asset class in 2021 (+ 23%). Private infrastructure
closed its successor direct offering in February 2022. We
have seen a strong demand with a relevant contribution to
fundraising over the second half of 2021.
Net AuM growth by asset class1)
(in USD bn)
127.4
109.1
17
16
25
52
+5%
+23%
+11%
+22%
18
19
27
63
2020
2021
Private real estate
Private infrastructure
Private debt
Private equity
1) Due to rounding, some totals may not correspond with the sum of the separate figures.
Client demand by region and by type
We have a broadly diversified and international client base
spanning a range of client types.
AuM by region
Asia
7%
Middle East
3%
South America
2%
North America
19%
Australia
7%
Switzerland
16%
USD
127 billion
Germany & Austria
17%
France & Benelux
4%
United Kingdom &
Ireland
19%
Southern Europe
3%
Scandinavia
3%
In terms of types of clients, the majority of our AuM stems
from institutional clients such as corporate, public, and
other pension funds, as well as sovereign wealth funds and
insurance companies. These institutional investors often
invest via bespoke solutions or traditional long-term closed-
ended private markets programs.
Over the last three years, we have also seen strong interest
from distribution partners, which typically accounts
for between 15-25% of client demand. They represent
private individuals and smaller institutional investors, who
ANNUAL REPORT 2021 Asset managers,
family offices,
banks & others
21%
USD
127 billion
Insurance
companies
10%
Corporate &
other pension funds
26%
AuM by program structure
2021 at a glance – Clients
increasingly recognize the benefits of private markets and aim
to mirror the allocations of institutional investors in their own
investment portfolios. Usually, they seek to access private
markets through open-ended programs with limited liquidity
features (evergreen programs).
AuM by type
Distribution partners/
private individuals
20%
Public pension
funds & SWFs
23%
Client demand by product structure
Managing around 300 diverse private markets portfolios in
different stages of their lifecycle and across all private market
asset classes is our strength and a key differentiator for our
firm. These encompass traditional private markets vehicles
such as comingled, closed-ended limited partnerships;
mandates for large institutions, which allow us to steer
investment exposure across multiple private markets asset
classes in line with clients' longer-term investment horizons;
and evergreen programs.
In 2021, 38% (USD 9.5 billion) of overall inflows were raised
via traditional private markets programs, typically limited
partnerships with a pre-defined contractual life and often an
initial term of 10-12 years for closed-ended equity offerings
and 5-7 years for closed-ended debt offerings.
Our mandate business focuses on building up private
market's exposure for large institutional clients, typically to
achieve long-term target allocations. Capital is committed
via long-term partnerships, which are often not limited to a
specific contractual life and will continue for a perpetual term,
unless new commitments are discontinued. Some 36% (USD
8.9 billion) of our new client commitments stemmed from
relationships with clients through mandates.
The remaining 26% (USD 6.5 billion) of new commitments
stemmed from our evergreen programs. Evergreen programs
were the fastest growing category and grew 30% in 2021.
This was driven by strong performance combined with robust
inflows. We are a global leader in evergreen programs for
investments in private markets. These open-ended evergreen
vehicles cater mostly to high-net-worth individuals and have
no contractual end but are subject to potential redemptions.
As of 31 December 2021, we manage 29% of our AuM (USD
36.7 billion) in evergreen programs.
Gating provisions are a standard feature of these evergreen
programs in order to protect remaining investors and
performance. Typically limited at up to 25% p.a. of the
prevailing net asset value, depending on the investment
strategy and content of the program, in severe cases of
market distress stricter gating provisions can be applied.
Following these inflows in 2021, our total AuM by product
structure as of 31 December 2021 stands as follows:
Traditional
client programs
34%
M
a
(
3
n
d
7
a
%
t
)
e
s
USD
127 billion
Bespoke
client solutions
66%
Evergreen
programs (29%)
As of 31 December 2021, our two largest investment
programs, which are both globally diversified, accounted for
15% of our AuM. The largest and second largest programs
combine private equity and private debt investments and
cater to private investors in the US and Europe, respectively.
We remain highly diversified with approximately 300
programs and mandates as shown in the below graph.
AuM split by private market programs and mandates
USD
EUR
127 billion
80 billion
(around
300 programs
& mandates)
Partners Group | 17
ANNUAL REPORT 2021 2021 at a glance – Client outlook
Client outlook
We expect 2022 will be a solid fundraising year. Based
on robust client demand for programs and mandates, and
facilitated by our robust investment capacity, we issue
guidance of USD 22 to 26 billion expected gross client
demand for the full-year 2022.
Our full-year estimates for tail-down effects from more
mature investment programs and potential redemptions from
evergreen programs amount to between USD 10 to 12 billion.
Growing numbers of clients appreciate the flexibility of choice
presented by our range of non-traditional private markets
offerings. We consider that our ability to provide tailored
access to private markets, and to create and actively manage
bespoke programs that match the different targets of our
clients, remains unparalleled in the industry. As such, we
believe that these structures will continue to drive demand
for Partners Group in the years to come. Additional building
blocks to our future growth are expected to stem from
defined contribution ("DC") pension plans as well as from
various global initiatives to democratize access to private
markets for a broader set of investors.
Based on our strong investment performance track record,
as well as client service excellence, we believe that we are
well positioned to continue to be a partner of choice for
global investors.
AuM, client demand, and other effects
(in USD bn)
2022 guidance
1 5 % p . a . ( 2 0 1 8 – 2 0 2 1 )
25.0
127
16.0
109
16.5
94
15.7
83
74
5.6
-1.2
FX &
other2)
7.1
+1.4
FX &
other2)
8.3
+1.6
FX &
other2)
8.1
+7.1
FX &
other2)
22 to 26
Client demand
10 to 12
Tail-downs &
redemptions1)
+/-
=
FX & other2)
(no guidance)
Total AuM
2018
2019
2020
2021
2022
1) Tail-downs & redemptions: tail-downs consist of maturing investment programs
(typically closed-ended structures); redemptions stem from evergreen programs.
2) Other consists of performance and investment program changes from select programs.
For illustrative purposes only. Due to rounding, some totals may not correspond with
the sum of the separate figures.
Mid-term outlook
We believe the private markets industry will grow to USD 30
trillion assets under management over the next decade, while
undergoing a fundamental shift – public markets and private
markets are swapping roles. Private markets are, in our view,
becoming the new 'traditional' asset class, offering investors
access to the new real economy. In fact, private markets
capital formation has already been outpacing traditional
18 | Partners Group
global equity issuances over the last five years. Over the
same period, IPOs have been increasingly concentrated in
technology and are more recently attracting speculative
investment. The industry will also face challenges as it
evolves – increased competition, growing regulatory scrutiny,
and increasingly specialized market participants. The firms
that will deliver sustained outperformance, at scale, for
their clients in this environment, are well-resourced active
managers that focus on thematic sourcing, value creation
capabilities, and an entrepreneurial governance approach.
To ensure we continue to achieve sustainable and profitable
growth in a market that is more mature and faster paced,
we have defined six strategic focus areas that will guide our
growth in the coming years and are designed to strengthen
our leading position in private markets further.
Our six strategic focus areas
Investments
Transformational investing
Scale investment activity
Clients
People
Differentiate with bespoke solutions
Grow client base in the US
Develop next generation leadership
Organize for scale
Investments
Transformational investing is our approach to active
business building, and our answer to the large set of
opportunities and challenges in the years ahead. In order to
maintain a growing pipeline of target companies and assets
with strong value creation hypotheses in high-conviction
thematic growth sectors, we will further invest in research to
increase the number of themes we cover at any given point
in time, concurrently grow our network of operating directors
that are experts in these fields, and more directly map the
goals of senior investment leaders to thematic objectives.
As an owner of market leading companies and assets, we
work alongside management teams with the mindset of a
founder, not a financial investor. Therefore, the design of
the board and the cooperation with their executive teams
is of the upmost importance. Building on the success of the
rollout of PG Alpha, our proprietary board and strategy
management system, we are expanding the scope to more
of our control assets to help ensure that our portfolio firms
are engaging with our framework throughout the lifespan
of our ownership.
ANNUAL REPORT 2021
2021 at a glance – Client outlook
As a recognized, established leader in sustainability, we
build better and more sustainable assets and companies. In
particular, we focus on driving effective governance at the
board and executive team level in our portfolio companies.
We believe this lever will be the most impactful
to establishing ESG targets in assets we own.
Lastly, the defined contribution ("DC") pensions market in the
US – a key driver of future growth for the private markets
industry – is expected to slowly open to the asset class. We
will take advantage of our experience in establishing solutions
with similar liquidity characteristics to develop a leading
position in this nascent market.
People
As we implement our system to develop the next generation
of leadership, we are continually assessing and developing
our global management team to create a highly talented
and diverse bench of potential next-generation leaders. To
underscore these objectives, we aim for a top quartile annual
employee engagement score of >75%, a low annual attrition
rate of <12.5%, and at least 25 female leaders in Senior
Management by 2025.
We will also continue to organize for scale through
technology and process improvements. We aim to increase
efficiency across our platform through additional investment
in our digitization efforts that will allow us to manage
increasing AuM with the same degree of operational
excellence across our services platform.
In addition to our direct investing activities, we will grow
our portfolio of non-control assets and loans more strongly.
The market for non-control assets has significantly evolved
in the last years and we intend to capture the numerous
opportunities that present themselves in this segment
by scaling our investment activities and focusing on
extension assets.
Clients
As the demand for private markets grows across a variety
of investor types, we observe two clear trends that play to
our strength as a preferred bespoke solutions provider:
first, large institutional investors in private markets are
becoming more sophisticated and require tailored solutions
to address a variety of specific needs. We will therefore more
prominently communicate our unique portfolio management
capabilities, which enable us to tailor investment content to
the specific objectives and parameters of each client's risk/
return profile and pre-defined investment level. Furthermore,
we will support our established client base in transitioning
from traditional limited partnership structures to industry-
leading mandates to give them access to the benefits offered
by tailored solutions. Second, there is an influx of smaller
investors and private individuals seeking to access the asset
class for the first time, for whom traditional solutions are not
always appropriate. For those clients, we will expand
our differentiated bespoke evergreen solutions, which
provide access to the same private markets investments
as large institutional investors while offering a certain
amount of liquidity.
At the same time, we will also focus on growing our client
base, particularly in the United States. We are actively
working to increase our brand recognition, especially among
consultants, to transfer the success we have had in creating
tailored portfolios for our European clients to the US and
win new clients with our bespoke solutions. While the US
typically accounts for around half of our private markets
investing every year, it currently only makes up around 20%
of our annual client demand. We will invest in growing the
incremental share of fundraising stemming from the US with
an ambition to be above 30% by 2025.
Partners Group | 19
ANNUAL REPORT 2021 2021 at a glance – Financials
Management fees grew by 25%, ahead of average assets
under management in CHF growth of 17% as the firm
benefited from higher late management fees5 received
following the final close of several traditional closed-ended
programs. Record portfolio realizations amounting to USD
29 billion translated into exceptionally high performance
fee growth. Over the period performance fees represented
46% of total revenues, slightly above our 2021 guidance of
40-45%. The substantial increase was also driven in part by
a "catch-up" in exit activities that had been postponed from
5 Late management fees typically arise when clients join a commingled closed-ended in-
vestment program at a later stage of the fundraising period and are required to pay retro-
spectively for previously delivered management services to this respective program. Any
such payments relating to prior accounting years are called late management fees.
Key financials
AuM as of the end of the period (in USD bn)
AuM as of the end of the period (in CHF bn)
Average AuM as of 31 December (in CHF bn)1)
Revenue margin1),2)
Revenues (in CHF m)2)
Management fees (in CHF m)3)
In proportion of total revenues3)
Performance fees (in CHF m)
In proportion of total revenues
EBIT (in CHF m)
EBIT margin
Management Fee EBIT (in CHF m)4)
Profit (in CHF m)
1) Based on average AuM, calculated on a daily basis.
Financials
Higher management fees and
significant performance fees
supported by record exit activity;
EBIT margin stable at 63%.
2020 following the outbreak of the COVID-19 pandemic,
and select realizations originally planned for 2022 that were
brought forward because the firm had already met its value
creation targets. Following the exceptional 2021, we guide
performance fees to account for 20-30% of total revenues
over the mid- to long-term.
As a result of a strong year, total revenues rose 86%. Total
costs grew in line with revenues and EBIT increased by 89%.
Profit increased in line with EBIT by 82% year-on-year. The
Board proposes a dividend increase of 20% to CHF 33.00
per share based on continued AuM growth and a confident
growth outlook across all business lines.
2021
127.4
116.0
109.3
2.41%
2'629
1'432
54%
1'197
46%
1'650
62.8%
895
1'464
2020
109.1
96.4
93.8
1.51%
1'412
1'146
81%
266
19%
875
62.0%
711
805
Growth
+17%
+20%
+17%
+86%
+25%
+349%
+89%
+26%
+82%
Partners Group | 21
2) Revenues from management services, net, including other operating income.
3) Management fees and other revenues, net, and other operating income.
4) Management fee EBIT is defined in the "Key definitions and alternative performance metrics" section of the Annual Report 2021.
ANNUAL REPORT 2021 2021 at a glance – Financials
Strong increase in management fees due to AuM
growth and higher late management fees
Average AuM in CHF grew by 17% in 2021. Over the same
period, management fees increased by 25%, amounting to
CHF 1'432 million in 2021 (2020: CHF 1'146 million). The
disproportional increase in management fees is mainly due
to late management fees received following the final close of
a number of traditional programs such as the latest Private
Equity Direct IV flagship fund. As a result, other revenues and
other operating income increased 115% amounting to CHF
132 million in 2021 (2020: CHF 61 million).
Management fees deviated from the mid- to long-term target
range of 70-80%, making up 54% of total revenues (2020:
81%), due to the substantial increase in performance fees.
Management fees are expected to make up the majority of
total revenues in a calendar year in the medium- to long-term,
with the remainder of revenues stemming from performance
fees, assuming a favorable market environment for exits.
Below are some characteristics of the management fees
generated by our different offerings:
• Closed-ended programs: management fees are recurring
as they are based on long-term client contracts, often
with an initial term of 10-12 years for closed-ended
equity offerings and 5-7 years for closed-ended debt
offerings. Such closed-ended offerings represented 34%
of our total AuM as of the end of 2021.
• Mandates: management fees stem from capital that is
committed via long-term partnerships, which are often
not limited to a specific contractual life and will continue
for a perpetual term, unless new commitments are
discontinued. Mandates represented 37% of our AuM as
of the end of 2021.
• Evergreen programs: management fees stem from
investment programs with limited liquidity that have no
contractual end and cater predominantly to high-net-
worth individuals and smaller institutional investors; they
represented 29% of AuM as of the end of 20216.
6 Gating provisions are a standard feature of these evergreen programs in order to protect
remaining investors as well as performance; net redemptions in these investment programs
are typically limited to 20-25% p.a. of the prevailing net asset value, depending on the
investment strategy and content of the program. When deemed in the best interest of
the investment program, stricter gating rules can be enforced for select share classes for a
period of up to two years.
22 | Partners Group
Revenues
(in CHF m)
-12%
+1%
1'610
473
(29%)
94
1'138
(71%)
2019
1'412
266
(19%)
61
1'146
(81%)
2020
2'629
Revenues1)
+86%
1'197
(46%)
Performance fees
+ 2 5 %
132
other revenues and
other operating income
Management fees2)
1'432
(54%)
2021
1) Revenues from management services, net, and other operating income.
Due to rounding numbers might not add up.
2) Management fees and other revenues, net, and other operating income.
Due to rounding numbers might not add up.
Management fee margin underpinned by long-term
stability and pricing discipline
The majority of our revenues are recurring and based
on long-term contracts with our clients, providing highly
visible cash flows. Our management fee margin has been
stable since 2012 and ranged between 1.22% and 1.33%. It
benefited from long-term price stability in client contracts
and consistent pricing discipline. In 2021, the management
fee margin increased, driven by higher late management
fees, amounting to 1.31% (2020: 1.22%). Performance fees
brought the total revenue margin to 2.41% (2020: 1.51%)
during the same period.
Revenue margin development1)
2.41%
1.89%
1.74%
1.82%
1.71%
1.51%
1.39%
1.33%
1.39% 1.38%
1.26%
1.23%
1.31% 1.24% 1.22%
1.33%
1.29% 1.29%
1.22%
1.31%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Management fees2)
Performance fees
1) Calculated as revenues divided by average assets under management, calculated
on a daily basis.
2) Management fees and other revenues, net, and other operating income.
ANNUAL REPORT 2021 2021 at a glance – Financials
Performance fees driven by 2020 "catch-up" and
strong market momentum throughout 2021
Our private markets portfolio generated attractive returns
during 2021, supported by strong underlying operational
performance. For instance, the firm's transformational
investment strategy translated into positive (unrealized)
valuation adjustments of Partners Group's own investments
on the balance sheet alongside its clients of 16% across all
asset classes. This performance in combination with very
favorable exit markets throughout 2021 allowed us to
generate USD 29 billion in underlying portfolio realizations
that translated into an exceptional increase in performance
fees.
Contributing to the significant year-on-year increase were
a catch-up in exit activities that had been postponed from
2020 and sizeable liquidity events at a number of larger
assets that the firm had worked to transform over many
years. We were also able to bring forward a portion of the
exit pipeline originally planned for 2022 because the firm had
already met its value creation targets. Overall, performance
fees increased to CHF 1'197 million (46% of revenues) from
CHF 266 million (19% of revenues), slightly ahead of the 2021
full-year guidance of 40-45%.
Our performance fees are well diversified across programs
and assets. More than 70 investment programs and mandates
with portfolios diversified across many vintage years
contributed to performance fees in 2021.
Performance fee contribution by investment programs
& mandates
Rest (>50)
20%
Top 1
17%
Top 11–20
15%
CHF
1’197
million
Top 6–10
20%
Top 2–5
28%
Performance fees were also driven by dozens of underlying
direct assets and hundreds of portfolio assets. The
investment program that contributed the most – a mature
private equity evergreen program – represented 17% of the
total performance fees. The asset that contributed the most
represented 23% of the total performance fees.
Performance fee contribution by single assets
Dozens of
direct assets
and hundreds of
portfolio assets
53%
CHF
1’197
million
Top 1
23%
Top 2
9%
Top 3
7%
Top 4
5%
Top 5
3%
In private markets, performance fees are designed to
remunerate investment managers for the long-term value
creation they generate for their clients. We follow a prudent
approach in recognizing performance fees: in closed-ended
investment programs, performance fees are typically charged
only once investments are realized and a pre-defined return
hurdle has been exceeded. To ensure a very low probability of
reversing realized performance fees, we stress-test unrealized
investments by applying significant discounts to NAV to
assess whether the hurdle rate will still be reached despite
these hypothetical mark-downs. These stress-tests are driven
by a number of factors including macroeconomic as well as
bottom-up asset and portfolio-level data. In line with revenue
recognition standards, this approach makes it highly unlikely
that we would have to reverse recognized performance fees
and therefore significantly reduces the risk of claw backs.
The performance fee recognition methodology is explained in
detail in the appendix on pages 28 and 29.
Investment track record confirms positive mid-to
long-term performance fee outlook
Over the mid- to long-term, we continue to expect our
performance fee potential to grow in line with AuM. As
the value creation period lasts several years, performance
fees often only start to be earned six to nine years after an
investment program commences its investment activities,
and only if its underlying investments are successful. For the
full-year 2022, of total revenues in the mid- to long-term,
assuming market conditions and the exit environment remain
supportive.
Partners Group | 23
ANNUAL REPORT 2021
2021 at a glance – Financials
million). Depreciation & amortization remained stable at CHF
40 million (2020: CHF 38 million).
EBIT growth in line with revenue growth
(in CHF m)
Revenues1)
Total operating costs, of
which
Personnel expenses
Personnel expenses (regular)
Personnel expenses
(performance-fee-related)
Other operating expenses
Depreciation & amortization
EBIT
EBIT margin
Average FTEs
Year-end FTEs
2021
2’629
-978
-861
-420
-441
-78
-40
1’650
62.8%
1’516
1’573
+86%
+82%
+100%
+28%
+335%
+14%
+3%
+89%
+1%
+4%
2020
1’412
-537
-430
-329
-101
-68
-38
875
62.0%
1’504
1’519
1) Revenues include management fees and other revenues, net, performance fees,net, and
other operating income. Regular personnel expenses exclude performance fee related
personnel expenses. Performance-fee related personnel expenses are defined in the
"Key definitions and alternative performance metrics" section of the Annual Report
2021 (p. 30).
EBIT margin stands at 62.8%
In 2021, EBIT increased by 89% in line with revenues,
amounting to CHF 1'650 million (2020: CHF 875 million)
and the EBIT margin increased slightly by 0.8%-point to
62.8% (2020: 62.0%). While we forge ahead with investing
for future growth, we will continue to steer the firm based
on our targeted 40% cost-income ratio on newly generated
management fees (assuming stable foreign exchange rates).
We also allocate up to 40% of revenues stemming from
performance fees to our teams through our long-term
incentive programs and/or bonus payments. The remainder
will be allocated to the firm and its shareholders.
EBIT margin development1)
60%
59% 59% 58%
61%
65%
65%
63%
62%
63%
~60%
target for newly
generated management
fees and all
performance fees
2012
2013
2014 2015
2016
2017
2018
2019
2020
2021
1) For 2012–2014, non-cash items related to the capital-protected product Pearl Holding
Limited were excluded from depreciation & amortization.
Cost growth in line with revenue growth
Our employees are our most important asset and the key
to our success. We aim to attract and retain highly talented
and diverse professionals by offering them a great place
to work and the opportunity to grow, both professionally
and personally. In order to build out major business,
corporate, and organizational initiatives to support continued
sustainable growth, we have historically grown the number of
professionals in line with our AuM. In financials terms, regular
personnel expenses follow management fees. Following an
intensified hiring in 2019 which allowed us to sufficiently
staff our platform with top talent, our recruiting activities
temporarily slowed down in 2020/2021 due to the pandemic
and resulted in 1'573 FTEs as of 31 December 2021 (31
December 2020: 1'519 FTEs), an increase of 4% year-on-year.
The average number of FTEs amounted to 1'516 FTEs (2020:
1'504 average FTEs) and increased by 1% year-on-year.
Overall, revenues increased by 86% year-on-year and total
operating costs increased by 82% year-on-year, directly driven
by higher personnel expenses. Personnel expenses represent
the vast majority of total operating costs and grew by 100%
in 2021. In particular, performance-fee related expenses
grew proportionally to the increase of performance fees to
CHF 441 million (2020: CHF 101 million), up 335% year-on-
year; there is a direct relationship between performance fees
earned and compensation paid. Non-performance fee-related
personnel expenses increased by 28% to CHF 420 million
(2020: CHF 329 million) and included higher bonus payments
in line with management fee-growth as well as one-off social
security costs on the firm's equity incentive plans as a result
of the strong increase in our share price.
Other operating expenses, increased by 14% during the
period and amounted to CHF 78 million (2020: CHF 68
24 | Partners Group
ANNUAL REPORT 2021Performance fee development1)2013201620152014201720182019202120202012941274733243728374572941'197109266506434394543371) Assuming that the market is favorable to exits, Partners Group expects to continue to generate significant performance fees from the underlying client portfolios due to the visibility that it has on the life cycles of its programs.43 Performance fees (in CHF m) AuM (in USD bn)…translates into future performance fee potential6-9 yearsPast AuM...
2021 at a glance – Financials
Diversified FX exposure
Fluctuations in EUR or USD against CHF affect our revenues
and costs and, therefore, also our total EBIT margin. This is
a result of the difference between the currency mix of our
revenues and costs. Most prominently affected by such
movements are management fees and our operating costs
(excluding performance-fee related expenses). Performance
fee revenues and performance fee-related expenses are
largely EBIT margin-neutral as both, revenues, and costs, are
equally affected by such currency movements.
Currency exposure in 2021
Others
6%
GBP
9%
EUR
44%
AuM ≈
Management
fees1)
USD
41%
EUR
4%
Others
5%
SGD
10%
GBP
14%
Costs2)
USD
24%
CHF
43%
• CHF –44 million (2020: CHF +1 million): the negative
contribution was driven by negative foreign exchange
effects, hedging and other costs. These negative effects
are mainly a result of the accounting treatment of
intercompany positions currencies different than CHF
(mainly USD). We hedge our exposure in currencies other
than CHF for our treasury management and short-term
financing services.
Corporate taxes amounted to CHF 263 million (2020: CHF
124 million). The tax rate increased to 15.2% (2020: 13.3%).
The increase in the tax rate was due to withholding taxes on
US dividend distributions to Partner Group Holding AG and
changes to the country mix in 2021.
In summary, the firm's profit increased by 82% year-on-year
to CHF 1'464 million (2020: CHF 805 million).
Profit development
(in CHF m)
1) Includes management fees and other revenues, net, and other operating income.
2) Includes regular personnel expenses (excluding performance fee-related expenses),
other operating expenses as well as depreciation and amortization.
EBIT
In 2021, currency movements decreased the total EBIT
margin by less than 0.2%-points, mainly driven by the USD
depreciation against the CHF.
Average FX rates development
FX rates (average)
1 EUR CHF
1 USD CHF
1 GBP CHF
1 SGD CHF
2021
1.081
0.914
1.257
0.680
2020
1.070
0.939
1.204
0.680
Delta
+1.0%
–2.6%
+4.4%
–0.0%
Strong performance in underlying portfolio drove
financial result
The financial result amounted to CHF 76 million (2020: CHF
53 million):
• CHF +120 million (2020: CHF +52 million): we invested
into our own investment programs alongside our clients
(see detailed description of balance sheet investments
below). During the period, our transformational investing
strategy facilitated substantial value creation in these
investment programs and resulted in an average return
across all stages and asset classes of 16% (2020: 7%).
For further information see note 5.1. to the consolidated
financial statements.
Total financial result, of which
Portfolio performance
Foreign exchange, hedging & others
Taxes
Tax rate
Profit
2021
1‘650
+89%
76
+120
-44
-263
15.2%
2020
875
53
+52
+1
-124
13.3%
1‘464
+82%
805
Proposed dividend of CHF 33.00 per share (+20%)
Based on the strong development of the business in all asset
classes and regions, the operating result, and their confidence
in the sustainability of this growth, Partners Group's Board of
Directors will propose an increased dividend of CHF 33.00
per share (2020: CHF 27.50 per share) to its shareholders at
the Annual General Meeting on 25 May 2022. This proposal
represents a dividend increase of 20% and a payout ratio
of 60% (2020: 91%), again aligning the firm's progressive
dividend strategy to its AuM growth.
Partners Group | 25
ANNUAL REPORT 2021 2021 at a glance – Financials
Dividend payments
USD 127 billion
33.00¹⁾
Partners Group has two fixed-rate senior unsecured CHF-
denominated corporate bonds outstanding:
Total AuM (in USD bn)
Dividend/share (in CHF)
27.50
25.50
22.00
19.00
15.00
USD 37 billion
6.25
7.25
10.50
8.50
2012
2013
2014 2015
2016
2017
2018 2019 2020 2021
1) The Board of Directors proposes at the Annual General Meeting of shareholders
to be held on 25 May 2022 that a dividend of CHF 33.00 per share shall be paid
for the financial year 2021.
Available liquidity of CHF 2.5 billion
Our balance sheet remains strong. After a dividend payment
of CHF 725 million in May 2021, we have an available
liquidity of CHF 2.5 billion (31 December 2020: CHF 2.0
billion) and hold a current net cash position of about CHF 1.6
billion as of 31 December 2021 (31 December 2020: CHF 1.1
billion). With this we have sufficient cash & cash equivalents
available to meet expected operational expenses and to
service short-term financial obligations. We furthermore
ensure that we meet our targeted available liquidity level that
would also enable us to well sustain the firm's operations
in a financial crisis scenario and/or a depressed economic
environment.
The firm maintains three unsecured credit facilities with Swiss
and international banks amounting to a total of CHF 865
million as of 31 December 2021 (31 December 2020: CHF
865 million). These credit facilities can be used for general
corporate purposes and/or to provide fixed advances, with
a primary focus on working capital financing. The facilities
are subject to maximum debt covenants which were met
throughout the current and prior year. As of 31 December
2021, no credit facility was drawn (31 December 2020: no
credit facility drawn).
Available liquidity of CHF 2.5 billion on balance sheet
(in CHF m)
Cash & cash equivalents
Short-term loans
Long-term debt
Total net cash
Undrawn credit facilities
Total available liquidity
Assets
911
1‘489
Liabilities
799
1'601
865
2'466
26 | Partners Group
• CHF 300 million, coupon 0.15%, maturity on 7 June
2024 (ISIN CH0361532895), issued in June 2017
• CHF 500 million, coupon 0.40%, maturity on 21 June
2027 (ISIN CH0419041287), issued in June 2019
As of 31 December 2021, our long-term outstanding debt
amounted to CHF 799 million (31 December 2020: CHF 799
million).
The proceeds of the bonds that we issued in the past further
strengthen the sustainability of our operations in a financial
crisis scenario and enable us to optimize the management
of our liquidity, in particular for short-term financing needs
arising from our treasury management services offered to our
clients. These services allow for efficient use of capital within
our investment programs by bridging capital drawdowns and
distributions where beneficial for clients (e.g. netting cash-
flows to reduce the number of drawdowns and distributions).
As of 31 December 2021, 441 short-term loans (31 December
2020: 271) were outstanding with an average loan amount
of CHF 3.4 million (31 December 2020: CHF 2.5 million).
The duration of these loans typically amount to 1-3 months.
The loans are secured against unfunded commitments and
are, in addition, subject to strict loan-to-value (LTV) rules. In
addition, each loan is assigned with a risk specific capacity,
which is measured against an overall risk capacity budget.
Continued balance-sheet light approach
As of 31 December 2021, the investments we hold on our
own balance sheet alongside clients amount to a total of
CHF 0.8 billion (31 December 2020: CHF 0.7 billion).
The firm's balance sheet investments consist of its
financial investments/GP commitments, seed investments,
and investments in associates. Financial investments/
GP commitments (i.e. our obligation to fund investments
alongside clients) typically represent about 1% of assets
invested in a closed-ended limited partnership structure and
have an aggregate net asset value of CHF 715 million as of
31 December 2021 (31 December 2020: CHF 616 million).
Investments in associates amounted to CHF 18 million as of
31 December 2021 (31 December 2020: CHF 25 million),
which mainly represent a stake in Pearl Holding Limited, a
mature investment program which continues to wind down
via ongoing distributions.
ANNUAL REPORT 2021
2021 at a glance – Financials
Partners Group also provides seed financing to certain early
stage investment programs managed by the firm. The scope
of these investments is limited due to the firm's strict balance
sheet risk management framework. The underlying assets of
these investment programs are typically private market assets
valued at the net asset value and amounted to (net) CHF 37
million as of 31 December 2021 (31 December 2020:
CHF 51 million).
Investments alongside clients from balance sheet4)
(in CHF m)
Financial investments / GP commitment1)
Investments in associates2)
Seed investments3)
Total investments alongside clients
715
18
37
770
1) NAV excluding CHF 455 million (2020: CHF 290 million) of commitments that were not
yet called but may be called over time, typically between one to five years following the
subscription of the commitment.
2) Investments in associates described in detail in note 6 of the 2021 Annual Report.
3) Seed investments presented in the annual report as assets and liabilities held for sale.
4) As of 31 December 2021.
In addition to investing into investment programs alongside
clients from our balance sheet, we further align the interests
of clients with those of the firm's employees by offering all
employees preferential terms to invest alongside our private
markets programs via a global employee commitment plan. In
line with standard industry practice, such investments charge
zero management fees and zero performance fees.
In total, commitments by the firm's Board of Directors and
employees amounted to approximately CHF 2.1 billion as of
31 December 2021 (31 December 2020: CHF 2.0 billion), of
which CHF 1.6 billion (2020: CHF 1.6 billion) is committed to
closed-ended programs and CHF 0.5 billion (2020: CHF 0.4
billion) to evergreen programs.
Financial outlook
• Management fees: we expect gross client demand of
USD 22 to 26 billion in 2022, together with around
USD 10 to 12 billion in tail-down effects from the
more mature closed-ended investment programs and
redemptions from evergreen programs. Fundraising is
expected to be balanced across all program types, from
customized mandates and the firm's extensive range of
evergreen fund solutions to its traditional closed-ended
programs. We expect this demand to translate into
additional management fees and therefore guide that the
management fees in CHF develop broadly in line with the
average AuM in CHF.
• Performance fees: after the strong exit environment
we experienced in 2021, we expect exits to normalize
along the same trajectory as prior years. 2021 was an
outlier year and we foresee a return to our mid-term
guidance of performance fees consisting of 20-30% of
total revenues in the mid- to long-term, assuming market
conditions and the exit environment remain supportive.
We continue to expect our performance fee potential to
grow roughly in line with AuM.
• Target EBIT margin: we continue to apply a disciplined
approach to cost management and invest in initiatives
that support our growth. We therefore steer the
operating margin towards our target EBIT margin of
~60% for newly generated management fees (assuming
stable foreign exchange rates) as well as for performance
fees.
• Tax rate: our overall corporate tax rate derives from
various tax rates across many jurisdictions worldwide
where we have active business operations. Considering
international tax developments, we expect the group tax
rate to be between 14-17%.
• Balance sheet: our balance sheet remains strong. With
CHF 2.9 billion in shareholder equity and CHF 2.5 billion
available liquidity, we feel well-equipped to realize
the potential of private markets in different economic
environments.
Partners Group | 27
ANNUAL REPORT 2021
2021 at a glance – Financials
Performance fee recognition
In private markets, performance fees are designed to remunerate
investment managers for the long-term value creation for
their clients. They are a profit-sharing incentive for investment
managers when their investment programs outperform a pre-
agreed return hurdle, typically defined over the lifetime of such
programs. In closed-ended investment programs, performance
fees are typically only charged once investments are realized and
a pre-defined return hurdle has been exceeded. As the value
creation period lasts several years, performance fees often only
start to be earned six to nine years after an investment program
commences its investment activities, and only if these are
successful. The illustrative example below shows the performance
fee model of a typical limited partnership program. It shows
how distributions in private markets portfolios bring forward
the maturity profile of an investment program and increase the
likelihood that the required return hurdle will be reached.
Illustrative example of a closed-ended private
markets program over its lifetime
This illustrative example assumes an initial client
commitment of 100 into a closed-ended investment
program. It is agreed that the investment manager shall
receive 20% of profits over time and that the return
hurdle shall translate to distributions to the client of 140.
After a few years, the investment manager generates
realizations in the portfolio and starts making
distributions to the client. After 6-9 years, the cumulative
distributions (blue triangle) received by the client exceed
140, i.e. the hurdle rate. In a first step, the investment
manager is entitled to receive subsequent distributions
above the return hurdle as performance fees, until the
investment manager “catches-up” on past performance in
excess of the client investment (“catch-up” on 140-100 =
40, and 40 x 20% performance fees = 8).
In a second step, the investment manager and the client
will share any additional distributions that stem from the
sale of the remaining portfolio over time, according to
the predefined performance-sharing mechanism. In our
example the client receives 80% of distributions and the
investment manager receives 20%. The example assumes
that the remaining NAV equals 60 and this entitles the
investment manager to an additional performance fee of
12 (60 x 20%) should the portfolio be sold at the indicated
value of 60.
Total performance fees received by the manager are 20
(20% of 40 + 20% of 60 = 8 + 12) and clients receive
80% of profits (80% x (200 – 100)).
28 | Partners Group
The timing and amount of performance fee payments
depends on several factors, including the pace of
deployment, performance of investments and pace of
realizations (cash distributions). Partners Group recognizes
performance fees of investment programs with a claw-
back mechanism based on a three-step approach:
•
•
•
Step 1: the total proceeds from realized underlying
investments are determined and the corresponding
costs of such realized as well as of fully written-off
investments are deducted (“Net Proceeds”).
Step 2: the NAV of unrealized underlying investments
is determined. The respective NAV will be written
down to the extent that the probability of a
future claw-back risk becomes minimal1. Then the
corresponding costs of such unrealized investments
are deducted, resulting in a “Write-Down NAV". This
Write-Down NAV is added to the Net Proceeds.
Step 3: performance fees are calculated for (1) and (2)
by multiplying (1) and (2) by the applicable performance
fee rate subject to exceedance of the hurdle rate.
Where the hurdle rate is not exceeded, there will be
no performance fees. The lower of such calculated
performance fees is recognized.
The illustrative example below explains the approach for
performance fee recognition as described above.
Performance fee model in a closed-ended
Performance fee model in a closed-ended
Performance fee model in a closed-ended
investment program
investment program
investment program
Capital returns to clients
Capital returns to clients
200
Capital returns to clients
200
200
Total current value
(in USD)
Total current value
Total current value
(in USD)
(in USD)
hurdle rate
(8% IRR on invested capital)
hurdle rate
hurdle rate
(8% IRR on invested capital)
(8% IRR on invested capital)
initial client commitment
(in USD)
initial client commitment
initial client commitment
(in USD)
(in USD)
140
140
140
100
100
100
NAV
NAV
60
60
NAV
60
12
12
12
(20% of 60 = 12)
(20% of 60 = 12)
(20% of 60 = 12)
catch-up
(20% of 40)
catch-up
(20% of 40)
8
catch-up
8
(20% of 40)
8
Distributions
Distributions
140
140
Locked-in performance (based on exits)
Locked-in performance (based on exits)
Distributions
140
Locked-in performance (based on exits)
Performance fees
Performance fees
(20% above 100)
(20% above 100)
Performance fees
(20% above 100)
Performance fee recognition (realized)
Performance fee recognition (realized)
Performance fee recognition (realized)
6-9 years
6-9 years
6-9 years
8
8
8
6-9 years
6-9 years
6-9 years
0
0
0
20
20
20
(20% of 100)
(20% of 100)
(20% of 100)
Note: performance fees of performance fee generating investment programs and
Note: performance fees of performance fee generating investment programs and
Note: performance fees of performance fee generating investment programs and
mandates typically range between 5-20% over a hurdle of 4-8% IRR on invested
mandates typically range between 5-20% over a hurdle of 4-8% IRR on invested
mandates typically range between 5-20% over a hurdle of 4-8% IRR on invested
capital, depending on the program and instruments. Past performance is not indicative
capital, depending on the program and instruments. Past performance is not indicative
capital, depending on the program and instruments. Past performance is not indicative
of future results. For illustrative purposes only.
of future results. For illustrative purposes only.
of future results. For illustrative purposes only.
1 As of 31 December 2021, the applied discount was 50% (31 December 2020: 50%),
except for selected programs where the discount is determined on the basis of a systema-
tic approach and may be up to 100%.
ANNUAL REPORT 2021 2021 at a glance – Financials
Illustrative example of performance fee
recognition in a closed-ended program
This simplified example assumes that, with initial client
commitments of 450, a fund made only two acquisitions:
investment Y for 100 and investment Z for 350.
Furthermore, it is assumed that the value of investment Y
increases to 200 and the value of investment Z increases
to 800 for Scenarios 1 and 2, and to 500 for Scenario 3.
The performance fee recognition under these three
scenarios would be as follows:
Scenario 1: No realizations (hurdle rate met)
Investment Y increases to
Investment Z increases to
Remaining NAV
200
800
1’000
•
•
•
Step 1: as there were no realized investments,
we would not be entitled to a performance fee.
Performance fees = 0.
Step 2: NAV stress-test: 1’000 x 50% = 500; 500
(stress-tested NAV) – 450 (cost of investments Y and
Z) = 50 (value gain); 50 (value gain) x 20% = 10 in
performance fees.
Step 3: as performance fees can only be recognized on
the lower of realized investments (step 1: performance
fee = 0) vis-à-vis the combination of realized and
stress-tested unrealized investments (step 2:
performance fee = 10), we would not recognize any
performance fees.
Scenario 2: Investment Y realized (hurdle rate met)
Investment Y realized for
Investment Z increases to
Remaining NAV
200
800
800
•
•
•
Step 1: as investment Y was realized for 200, we
would be entitled to a performance fee as hurdle rate
at asset level was met. 200 – 100 = 100 (value gain);
100 (value gain) x 20% = 20 performance fees.
Step 2: stress-test on remaining NAV: 800 (unrealized
investment Y) x 50% = 400; 400 (stress-tested NAV) +
200 (realized investment Y) – 450 (cost of investment
Y and Z) = 150 (value gain); 150 (value gain) x 20% =
30 performance fees (assuming the hurdle rate is met).
Step 3: as performance fees can only be recognized
on the lower of realized investments (step 1:
performance fee = 20) vis-à-vis the combination of
realized and stress-tested unrealized investments (step
2: performance fee = 30), we would recognize 20
performance fees.
Scenario 3: Investment Y realized (hurdle rate not met)
Investment Y realized for
Investment Z increases to
Remaining NAV
200
500
500
•
•
Step 1: as investment Y was realized for 200, we
would be entitled to a performance fee as hurdle rate
at asset level was met. 200 – 100 = 100 (value gain);
100 (value gain) x 20% = 20 performance fees.
Step 2: stress-test on remaining NAV: 500 (unrealized
investment Y) x 50% = 250; 250 (stress-tested NAV) +
200 (realized investment Y) – 450 (cost of investment
Y and Z) = 0 (value gain); as the stress-test brings the
overall return hurdle of the program below the pre-
agreed threshold in this example, no performance fees
can be recognized.
•
Step 3: as the hurdle rate has not been met, we will
not recognize any performance fees, despite there
being realized investments.
Partners Group | 29
ANNUAL REPORT 2021
Key definitions and alternative performance metrics
Key definitions
Assets under management (AuM): Partners Group publishes
information on Assets under Management (“AuM”), assets
raised, tail-downs and other related information (combined
“AuM Information”) on a semi-annual basis.
AuM Information provides market participants with
transparency on the status and development of Partners
Group's recurring revenue basis for asset management,
investment management, and advisory services ("AuM
Services").
When calculating AuM Information, Partners Group strives
to mirror the recurring fee basis, including reserved amounts
for commitments for the various programs and mandates;
amounts can therefore be based on reasonable estimates
and judgment where necessary, in particular where AuM
Information reflects anticipated investment activities for the
next semester. Where Partners Group renders AuM Services
in a joint effort with similarly split responsibilities with third
parties, AuM and assets raised are counted at 50%. No AuM
and assets raised are counted where Partners Group is only
providing administrative, transactional, or consultant services.
Alternative performance metrics (APM)
Partners Group uses various financial and alternative
performance metrics (APM) to measure its financial
performance as part of its financial reporting. The APMs
used by Partners Group supplement the measures that are
documented and published in accordance with International
Financial Reporting Standards (IFRS). An APM is defined
as a financial measure of historical or future financial
performance, financial position or cash flows not already
defined or specified in the applicable financial reporting
framework.
APMs are predominantly operational management metrics
and undergo regular performance reviews in both internal
and external reporting. The resulting findings are taken into
account as part of a strategy review process. We must point
out that the comparability of APMs within the industry can
be limited due to different calculation methods.
Partners Group uses the following APMs:
Dividend payout ratio is defined as the (proposed) dividend
per share divided by diluted earnings per share.
Earnings before interest and tax (EBIT) stands for the sum
of revenues from management services, net, including other
operating income and expenses before net finance result and
before income taxes. This metric is used by Partners Group
as the financial target in its internal presentations (business
plans) and in its external presentations (to analysts and
investors). EBIT is considered as a useful unit of measurement
for evaluating the operating performance of the group.
EBIT margin is calculated as earnings before interest and
tax (EBIT) divided by revenues from management services,
net, including other operating income. It is one of the key
operational management metrics as it provides an indication
of the profitability of the business.
In millions of Swiss francs
EBIT
Revenues from management
services, net, including other
operating income
2021
1’650
2’629
2020
875
1’412
EBIT margin
62.8%
62.0%
Earnings before interest, tax, depreciation, and
amortization (EBITDA) stands for the sum of revenues from
management services, net, including other operating income
and expenses before net financial result, before taxes, and
before depreciation and amortization.
Equity ratio is calculated as equity attributable to owners of
the firm, divided by total liabilities and equity.
Management Fee EBIT is calculated as EBIT (see EBIT
definition above) less recognized performance fee revenues
adding back Performance Fee Related Expenses (see
Performance Fee Related Expenses definition below).
Adjustments to the Management Fee EBIT calculation may
occur should accounting or other extraordinary adjustments
with an effect on the financials make the comparison
between the start and end years inconsistent.
30 | Partners Group
ANNUAL REPORT 2021
Key definitions and alternative performance metrics
Performance fee-related expenses include expenses for
the firm's dedicated performance fee-related compensation
program (the Management Carry Program), performance fee-
related bonus expenses, related social security expenses and
social security expenses for the Management Performance
Plan.
In millions of Swiss francs
EBIT
Performance fee revenues
Performance fee related expenses
Management Fee EBIT
2021
1’650
(1'197)
441
895
2020
875
(266)
101
711
Net cash position is calculated as cash and cash equivalents,
including short-term loans to products, minus credit facilities
drawn and long-term debt.
In millions of Swiss francs
Cash and cash equivalents
Short-term loans
Long-term debt
Net cash position
2021
911
1’489
(799)
1’601
2020
1’228
673
(799)
1’102
Revenue margin is calculated as revenues from management
services, net, including other operating income, divided by
average AuM (in CHF bn) calculated on a daily basis.
In millions of Swiss francs
Revenues from management
services, net, including other
operating income
Average AuM (in CHF bn)
calculated on a daily basis
2021
2’629
2020
1’412
109.3
93.8
Revenue margin (annualized)
2.41%
1.51%
Return on average shareholders’ equity (RoE) is calculated as
profit for the period, divided by average equity attributable to
owners of the firm.
In millions of Swiss francs
Profit for the period
Average equity attributable to
owners of the firm
2021
1’464
2’587
2020
805
2’281
Return on equity
57%
35%
Partners Group | 31
ANNUAL REPORT 2021
1. Report of the auditors on the consolidated financial statements
2. Consolidated financial statements:
– Consolidated income statement for the years ended 31 December 2021 and 2020
– Consolidated statement of comprehensive income for the years ended 31 December 2021 and 2020
– Consolidated balance sheet as of 31 December 2021 and 2020
– Consolidated statement of changes in equity for the years ended 31 December 2021 and 2020
– Consolidated statement of cash flows for the years ended 31 December 2021 and 2020
– Notes to the consolidated financial statements for the years ended 31 December 2021 and 2020
33
38
39
40
42
44
46
32 | Partners Group
Report of the auditors on the consolidated
financial statements
Statutory Auditor's Report
To the General Meeting of Partners Group Holding AG, Baar
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Partners Group Holding AG and its subsidiaries (the
Group), which comprise the consolidated balance sheet as at 31 December 2021 and the consolidated income
statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements,
including a summary of significant accounting policies.
In our opinion the consolidated financial statements (pages 38 to 107) give a true and fair view of the consolidated
financial position of the Group as at 31 December 2021, and its consolidated financial performance and its
consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards
(IFRS) and comply with Swiss law.
Basis for Opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss
Auditing Standards. Our responsibilities under those provisions and standards are further described in the
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss audit
profession, as well as the International Ethics Standards Board for Accountants’ International Code of Ethics for
Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Recognition of revenues from management services (net)
Valuation of financial investments
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the consolidated financial statements of the current period. These matters were addressed in the context of our
audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 33
ANNUAL REPORT 2021
ANNUAL REPORT 2021
Report of the auditors on the consolidated
financial statements
Recognition of revenues from management services (net)
Key Audit Matter
Our response
Revenues from management services, which comprise
management fees, organizational fees and performance
fees, are the result of investment management services
within the Group’s operating segments. Payments to
third parties for the introduction of clients as well as
rebates to clients are recognized as revenue
deductions.
Revenues from management services (net) is an area
of focus due to the size and importance to the Group’s
results.
The calculations of revenues and revenue deductions
are largely automated. There are a number of inherent
risks in calculating certain types of revenue and
revenue deductions including the interpretation and
manual input of key contractual terms, which could lead
to errors. The bespoke and complex nature of
underlying investment management agreements and
other contractual terms involving multiple Group entities
requires effective monitoring to ensure all financial
terms and conditions are captured completely and
accurately and are applied appropriately.
Performance fees are inherently more complex in
nature. The assessment of the likelihood of a future
clawback on such fees and the determination whether
criteria set in the carried interest arrangements are met
require management’s judgement. The determination of
performance fees is based on the underlying valuation
of the investment portfolio and requires manual
interventions.
Amongst other procedures, we obtained an
understanding of management’s processes and controls
around the calculation of revenues and revenue
deductions by performing walkthrough procedures,
testing relevant key controls and evaluating the
governance structure. We analyzed independent third
party controls reports on fee and valuation related
processes and controls to determine whether they were
appropriate for our purposes.
On a sample basis, we obtained confirmations from the
external auditor of the underlying investment programs
on the revenues from management services covered in
their audit and reconciled these revenues to the Group’s
general ledger. We also performed inquiries with the
external auditor of the underlying investment programs
to confirm that the audits on the sampled investment
programs were completed.
On a sample basis, we agreed revenues from
management services and revenue deductions to
underlying contracts and performed manual
recalculations.
We obtained an understanding of the Group’s
processes and controls around the calculation of
performance fees by evaluating the terms and
conditions set out in the underlying partnership
agreements and performing walkthrough procedures.
On a sample basis, we tested performance fees by:
− Performing analytical procedures based on our
understanding of investment realizations and the
performance of the investment fund;
− Discussing and evaluating management’s
assessment of the likelihood of a future clawback of
performance fees by challenging and back-testing
the key assumptions. We further corroborated
whether such fees had been recognized in the
appropriate period;
− Reconciling potential performance fee values used
in the assessment of a future clawback to the
accruals in the financial statement of the underlying
investment programs; and
− Evaluating completeness by assessing whether a
sample of eligible but unearned performance fees
should have been recognized during the 2021
financial year.
For further information on the recognition of revenues from management services (net) refer to notes 2, 3 and
19.7 to the consolidated financial statements on pages 46 to 51 and 100 to 101.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
34 | Partners Group
Report of the auditors on the consolidated
financial statements
ANNUAL REPORT 2021
Valuation of financial investments
Key Audit Matter
Our response
As at 31 December 2021, financial investments on the
Group’s balance sheet amounted to CHF 715.2 million
(2020: CHF 615.6 million). In addition, financial
investments presented as assets held for sale
amounted to CHF 79.5 million (2020: 305.7 million).
The financial investment and assets held for sale
portfolio comprises a large number of unquoted
securities for which no prices are available and which
have little or no observable inputs. The Group applies
valuation techniques such as the market approach, the
income approach or the adjusted net asset value
method that are based on international standards.
The fair value assessment requires significant
judgement by management, in particular with regard to
key input factors such as earnings multiples, liquidity
discounts, discount rates or the selection of valuation
multiples.
Our procedures included obtaining an understanding of
the Group’s processes and key controls around the
valuation of and accounting for unquoted investments
by performing walkthrough procedures, testing relevant
key controls and evaluating the valuation governance
structure. We analyzed independent third party controls
reports on valuation related processes and controls to
determine whether they were appropriate for our
purposes.
On a sample basis, we obtained confirmations from the
external auditor of the underlying investment programs
on their net asset values or the valuation of their
investments. We also performed inquiries with the
external auditor of the underlying investment programs
to confirm that the audits on the sampled investment
programs were completed. The proportionate holdings
of the Group in such financial investments were
reconciled to the Group’s transaction records that are
kept for each investor.
We further assessed if adjustments to the fair values in
the financial statements of the underlying investment
programs are required.
For further information on the valuation of financial investments refer to notes 2, 5.3.2 and 5.3.3 to the
consolidated financial statements on pages 46, 47, 63 and 64.
Other Information in the Annual Report
The Board of Directors is responsible for the other information in the annual report. The other information
comprises all information included in the annual report, but does not include the consolidated financial
statements, the stand-alone financial statements of the company, the compensation report and our auditor’s
reports thereon.
Our opinion on the consolidated financial statements does not cover the other information in the annual report and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information in the annual report and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement
of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibility of the Board of Directors for the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board
of Directors determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 35
Report of the auditors on the consolidated
financial statements
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Swiss law, ISAs and Swiss Auditing Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
− Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
− Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made.
− Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
− Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
− Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit
opinion.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors or its relevant committee, we determine those
matters that were of most significance in the audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor’s report, unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
36 | Partners Group
ANNUAL REPORT 2021
Report of the auditors on the consolidated
financial statements
Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of consolidated financial statements
according to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.
KPMG AG
Thomas Dorst
Licensed Audit Expert
Auditor in Charge
Zurich, 18 March 2022
Malea Bourquin
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 37
ANNUAL REPORT 2021
Consolidated income statement for the years ended
31 December 2021 and 2020
In millions of Swiss francs
Note
2021
2020
Management fees and other revenues, net
Performance fees, net
Revenues from management services, net
Other operating income
Personnel expenses
Other operating expenses
EBITDA1)
Depreciation and amortization
EBIT1)
Finance income
Finance expense
Profit before tax
Income tax expense
Profit for the period
Profit for the period attributable to owners of the Company
Basic earnings per share (in Swiss francs)
Diluted earnings per share (in Swiss francs)
1) For definitions please refer to p. 30.
1'393.3
1'196.6
2'589.9
1'115.7
266.4
1'382.1
38.8
30.2
(860.6)
(78.0)
1'690.1
(39.7)
1'650.4
122.5
(46.7)
1'726.2
(262.6)
1'463.6
(430.0)
(68.5)
913.8
(38.4)
875.4
65.5
(12.3)
928.6
(123.8)
804.8
1'463.6
804.8
56.19
55.12
30.63
30.36
3.
5.2.
4.1.
10.
11.&12.
5.1.
5.1.
9.1.
15.
15.
38 | Partners Group
ANNUAL REPORT 2021
Consolidated statement of comprehensive income
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Note
2021
2020
Profit for the period
1'463.6
804.8
Other comprehensive income:
Exchange differences on translating foreign operations
Total other comprehensive income that may be reclassified
to the income statement in subsequent periods
Net actuarial gains/(losses) from defined benefit plans
Tax impact on net actuarial gains/losses from defined benefit plans
Actuarial gains/(losses) from defined benefit plans, net of tax
Total other comprehensive income not being reclassified to the
income statement in subsequent periods, net of tax
4.5.2.
9.2.
(2.4)
(2.4)
14.5
(1.7)
12.8
12.8
(94.2)
(94.2)
0.4
(0.0)
0.4
0.4
Total other comprehensive income for the period, net of tax
10.4
(93.8)
Total comprehensive income for the period, net of tax
1'474.0
711.0
Total comprehensive income attributable to owners of the Company
1'474.0
711.0
Partners Group | 39
ANNUAL REPORT 2021 Consolidated balance sheet
as of 31 December 2021 and 2020
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Assets
Cash and cash equivalents
Derivative assets held for risk management
Trade and other receivables
Short-term loans
Assets held for sale
Total current assets
Property, equipment and right-of-use assets
Intangible assets
Investments in associates
Financial investments
Other financial assets
Employee benefit assets
Deferred tax assets
Total non-current assets
Total assets
5.3.1.
5.4.1.
5.4.1.
5.3.3.
11.
12.
6.
5.3.2.
5.3.4.
4.5.
9.2.
910.7
7.7
642.8
1'489.2
79.5
3'129.9
256.4
65.9
18.3
715.2
532.2
10.5
104.4
1'702.9
4'832.8
1'227.6
3.3
465.4
673.5
305.7
2'675.5
236.2
62.3
25.0
615.6
353.4
64.0
1'356.5
4'032.0
40 | Partners Group
ANNUAL REPORT 2021
Consolidated balance sheet
as of 31 December 2021 and 2020
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Liabilities and equity
Liabilities
Trade and other payables
Income tax liabilities
Provisions
Employee benefit liabilities
Liabilities held for sale
Total current liabilities
Employee benefit liabilities
Provisions
Deferred tax liabilities
Long-term debt
Lease liabilities
Other long-term liabilities
Total non-current liabilities
Total liabilities
Equity
Share capital
Treasury shares
Legal reserves
Other components of equity
Equity attributable to owners of the Company
Total liabilities and equity
7.
4.5.
5.3.3.
4.5.
9.2.
13.
8.
5.4.3
14.
306.6
90.9
0.1
288.1
42.6
728.3
228.7
46.2
2.2
107.4
254.6
639.1
296.0
213.6
6.5
3.4
799.1
49.9
51.1
1'206.0
1'934.3
0.3
(378.2)
0.2
3'276.2
2'898.5
4'832.8
6.8
3.4
798.9
56.6
39.0
1'118.3
1'757.4
0.3
(266.2)
0.2
2'540.3
2'274.6
4'032.0
Partners Group | 41
ANNUAL REPORT 2021
Consolidated statement of changes in equity
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Equity attributable to owners of the Company
2021
Other components of equity
Share
capital
Treasury
shares
Legal
reserves
Cumulative
translation
adjustments
Retained
earnings
Total other
components
of equity
Total
Balance as of 1 January
0.3
(266.2)
0.2
(223.6)
2'763.9
2'540.3
2'274.6
Transactions with owners of the Company,
recorded directly in equity
Contributions by and distributions to owners of
the Company:
Purchase of treasury shares
Disposal of treasury shares
Share-based payment expenses
Tax effect on share-based payment transactions
Dividends paid to owners of the Company
Total contributions by and (distributions
to) owners of the Company
Profit for the period
Total other comprehensive income for the period,
net of tax
Total comprehensive income for the period,
net of tax
(386.0)
274.0
(386.0)
(121.0)
(121.0)
153.0
55.5
52.0
55.5
52.0
55.5
52.0
(724.6)
(724.6)
(724.6)
-
(112.0)
-
-
(738.1)
(738.1)
(850.1)
1'463.6
1'463.6
1'463.6
-
-
-
-
-
-
(2.4)
12.8
10.4
10.4
(2.4)
1'476.4
1'474.0
1'474.0
Balance as of 31 December
0.3
(378.2)
0.2
(226.0)
3'502.2
3'276.2
2'898.5
42 | Partners Group
ANNUAL REPORT 2021
Consolidated statement of changes in equity
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Equity attributable to owners of the Company
2020
Other components of equity
Share
capital
Treasury
shares
Legal
reserves
Cumulative
translation
adjustments
Retained
earnings
Total other
components
of equity
Total
Balance as of 1 January
0.3
(212.9)
0.2
(129.4)
2'629.9
2'500.5
2'288.1
Transactions with owners of the Company,
recorded directly in equity
Contributions by and distributions to owners of
the Company:
Purchase of treasury shares
Disposal of treasury shares
Share-based payment expenses
Tax effect on share-based payment transactions
Dividends paid to owners of the Company
Total contributions by and (distributions
to) owners of the Company
Profit for the period
Total other comprehensive income for the period,
net of tax
Total comprehensive income for the period,
net of tax
(221.2)
167.9
(93.6)
(93.6)
57.3
33.6
57.3
33.6
(221.2)
74.3
57.3
33.6
(668.5)
(668.5)
(668.5)
-
(53.3)
-
-
(671.2)
(671.2)
(724.5)
804.8
804.8
804.8
-
-
-
-
-
-
(94.2)
0.4
(93.8)
(93.8)
(94.2)
805.2
711.0
711.0
Balance as of 31 December
0.3
(266.2)
0.2
(223.6)
2'763.9
2'540.3
2'274.6
Partners Group | 43
ANNUAL REPORT 2021 Consolidated statement of cash flows
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Note
2021
2020
Operating activities
Profit for the period
Adjustments:
Net finance (income) and expense
Income tax expense
Depreciation and amortization
Share-based payment expenses
Change in provisions
Change in employee benefit assets/liabilities
Non-cash change in other financial assets
Non-cash change in other long-term liabilities
Operating cash flow before changes in working capital
(Increase)/decrease in trade and other receivables and short-term loans
Increase/(decrease) in trade and other payables
Finance expenses (other than interest) paid
Cash generated from/(used in) operating activities
Income tax paid
Net cash from/(used in) operating activities
Investing activities
Proceeds on disposal of property and equipment
Purchase of property and equipment
Purchase of intangible assets
Purchase of financial investments & assets and liabilities held for sale
Proceeds on disposal of financial investments & assets and liabilities held for sale
Proceeds on disposal of investments in associates
Purchase of other financial assets
Proceeds on disposal of other financial assets
Interest received1)
Net cash from/(used in) investing activities
5.1.
9.1.
11.&12.
4.2.
11.
12.
6.
5.1.
1'463.6
804.8
(75.8)
262.6
39.7
55.5
(2.5)
262.9
(185.5)
12.9
1'833.4
(1'003.0)
81.3
(4.4)
907.3
(205.5)
701.8
0.2
(34.3)
(21.9)
(136.2)
160.6
8.5
(3.5)
2.0
2.8
(21.8)
(53.2)
123.8
38.4
57.3
(0.5)
(28.6)
(50.7)
(6.8)
884.5
365.5
58.4
(4.1)
1'304.3
(149.9)
1'154.4
(18.9)
(12.0)
(59.0)
82.8
17.5
(21.8)
0.9
2.8
(7.7)
1) Excludes CHF 27.5 million (2020: CHF 25.3 million) compensation from short-term loans (see note 5.2.) that forms part of net cash flow from operating activities.
44 | Partners Group
ANNUAL REPORT 2021
Consolidated statement of cash flows
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Note
2021
2020
Financing activities
Repayments of credit facilities
Drawdowns from credit facilities
Payment of principal portion of lease liabilities
Interest paid
Dividends paid to shareholders of the Company
Purchase of treasury shares
Disposal of treasury shares
Net cash from/(used in) financing activities
8.
14.
(375.0)
375.0
(12.1)
(8.4)
(668.5)
(221.2)
74.3
(835.9)
(11.7)
(8.7)
(724.6)
(386.0)
153.0
(978.0)
Net increase/(decrease) in cash and cash equivalents
(298.0)
310.8
Cash and cash equivalents as of 1 January
Exchange differences on cash and cash equivalents
1'227.6
(18.9)
933.0
(16.2)
Cash and cash equivalents as of 31 December
910.7
1'227.6
In millions of Swiss francs
31 December 2021 31 December 2020
Bank balances
Petty cash
Total cash and cash equivalents
910.7
0.0
910.7
1'227.6
0.0
1'227.6
Partners Group | 45
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
1. Reporting entity
Partners Group Holding AG (“the Company”) is a company domiciled in Switzerland whose shares are publicly traded on the
SIX Swiss Exchange. The address of the Company’s registered office is Zugerstrasse 57, 6341 Baar-Zug, Switzerland. The
consolidated financial statements for the years ended 31 December 2021 and 2020 comprise the Company and its subsidiaries
(together referred to as “the Group”) and the Group’s interest in associates. The consolidated financial statements were
authorized for issue by the Board of Directors (“BoD”) on 18 March 2022 and are subject to approval at the Annual General
Meeting of shareholders on 25 May 2022.
The principal activities of the Group are described in note 3.
The consolidated financial statements present a true and fair view of the Group’s financial position, results of operations and cash
flows in accordance with International Financial Reporting Standards (“IFRS”) and comply with Swiss law.
2. Critical accounting estimates and judgments
Estimates and judgments are based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future and exercises judgment in applying its accounting policies.
The resulting accounting estimates will, by definition, rarely equal the related actual results. The estimates and assumptions that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, as well as significant judgments in applying accounting policies, are discussed below.
(a) Accounting for investment programs
The Group assesses its involvement with the investment programs that it manages to determine whether it has control over them
(see note 19.3.). In accordance with IFRS 10, the Group assesses its power over the investment programs, its exposure or rights
to variable returns and its ability to use its power to affect its returns. The assessment determines whether the Group acts as an
agent on behalf of the investors in the investment programs and within delegated decision-making rights or as a principal.
In its assessment, the Group focuses on its exposure to the total economic interest in the investment programs. This exposure
consists of a combination of the stake the Group holds in an investment program and the Group’s remuneration for the services it
provides to the investment program. IFRS 10 does not provide clear-cut thresholds for determining whether or not an investment
program is controlled. The Group took all available facts and circumstances into consideration and concluded for this year (same
as last year) that it acts as an agent for all investment programs that it manages, except for investment programs financed with
seed capital (see note 19.15.). For further details on the investment programs and their carrying amounts please refer to notes
5.3.2. and 5.3.3.
(b) Fair value
A significant portion of the Group’s assets and, to a lesser extent, liabilities are carried at fair value. The fair value of some of
these assets is based on quoted prices in active markets or observable market inputs.
In addition, the Group holds financial instruments for which no quoted prices are available, and which have little or no observable
market inputs. For these financial instruments, the determination of fair value requires subjective assessment with varying
degrees of judgment which take into consideration the liquidity, concentration, pricing assumptions, current economic and
competitive environment and the risks affecting the specific financial instrument. In such circumstances, valuation is determined
based on management’s judgment related to the assumptions that market participants would use in pricing assets or liabilities
(including assumptions about risk). These financial instruments mainly include financial investments in the areas of private equity,
private debt, private real estate and private infrastructure and derivatives.
For more information regarding fair value measurement, refer to note 5.5.
46 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(c) Revenue recognition
Instances may arise where the Group must decide whether revenues should be recognized or not. These situations mainly relate
to performance fees, which are foreseeable, but have not yet been collected by the Group or are subject to claw-back risk. A
“claw-back” ensures that investors in an investment program are returned any performance fees paid in excess of the originally
agreed upon percentage during the life of the investment program. It protects investors from paying performance fees on one
investment and then having a subsequent investment incur losses resulting in overall performance fees paid in excess of the
originally agreed upon terms. Performance fees are only recognized once the likelihood of a potential future claw-back is no
longer considered meaningful in the assessment of the Group (see note 19.7.).
(d) Others
Other relevant areas with critical accounting estimates and judgements include goodwill impairment, loss allowances on financial
assets, actuarial assumptions regarding defined benefit plans (IAS 19) and uncertain tax positions in respect to the business
model. These are, however, considered to be of less significance for the Group.
(e) Impact of COVID-19
The Group has assessed the consequences of the COVID-19 pandemic on the Consolidated Financial Statements, specifically
considering the impacts on key judgements and significant estimates. The accounting matters assessed included, but were not
limited to, fair values of investments, recoverability of outstanding loans and receivables, the carrying value of goodwill, intangible
assets, property, equipment and right-of-use assets, and the defined benefit pension plan. Any continued negative impacts from
the pandemic in 2021 may have an impact on these, or other matters.
The Group experienced strong portfolio performance in 2021 despite the economic uncertainty caused by the COVID-19
pandemic. Additionally, the Group’s financial investments (see note 5.3.2.), that are measured at fair value, also experienced
strong performance in 2021.
The COVID-19 pandemic did not change the Group’s assessment in regards to the credit risk related to outstanding loans and
receivables. The Group has not identified any material expected credit losses (see note 5.4.1.).
While market volatility caused by COVID-19 resulted in a generally weak exit environment in 2020, transactional exit markets
recovered and were very favorable in 2021. This resulted in significantly higher performance fees than in 2020 when
performance fees were negatively affected by the subdued exit environment caused by the outbreak of COVID-19.
The impact of the COVID-19 pandemic did not result in impairment of goodwill, intangible assets, or property, equipment and
right-of-use assets. No negative impact was noted on the defined benefit pension plan.
While there was no significant impact to the areas assessed, the Group will continue to monitor these areas of increased
judgements and risk for material changes.
3. Segment information
The BoD has been identified as the chief operating decision-maker. The BoD reviews the Group’s internal reporting in order to
assess performance and allocate resources. Management has identified the following operating segments based on these reports:
• Private equity
• Private debt
• Private real estate
• Private infrastructure
In these operating segments, the Group provides its clients with investment management services in the private markets
spectrum. These services comprise structuring and investment advisory in relation to direct investments in operating companies
or assets and investments in third party managed investment programs. As part of its management services, the Group offers
diversified as well as more focused investment programs in relation to investment styles, industry and geography of the
investments in private markets.
Partners Group | 47
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Private equity
Private equity refers to investments made in private – i.e. non-publicly traded – companies. On behalf of its clients, the Group
focuses on investing directly into companies that have been identified via its thematic sourcing approach with the objective
of transforming them through driving strategic initiatives and operational improvements. In addition, the Group invests in the
private equity secondary market by acquiring portfolios of privately held companies and in the primary market by maintaining a
comprehensive set of investment relationships.
Private debt
Private debt refers to debt financing for private companies. On behalf of its clients, the Group focuses on investment
opportunities within sectors and industries that are undergoing transformational change, as identified by its thematic sourcing
approach. The Group provides tailored financing solutions to companies looking for non-bank financing across the entire debt
structure, ranging from predominantly senior loans to subordinated financing solutions, as well as across different regions.
Private real estate
Private real estate refers to investments made in private real estate assets. On behalf of its clients, the Group focuses on
investing in real estate assets benefitting from transformative trends where it can deploy a value creation plan. The Group invests
in either equity or debt instruments, across several sectors and regions. In addition, the Group invests in the private real estate
secondary market by acquiring portfolios of privately held assets and in the primary market by maintaining a comprehensive set
of investment relationships.
Private infrastructure
Private infrastructure refers to investments made in private infrastructure assets. On behalf of its clients, the Group focuses
on investing in essential infrastructure assets that have clear stakeholder impact which could be transformed through its
entrepreneurial governance. The Group invests across the capital structure in either equity or debt instruments, as well as across
sectors and regions based on its thematic sourcing approach.
The activities in all operating segments consist of:
• Strategic asset allocation and portfolio management
• Investment management, value creation and monitoring
• Risk management
• Reporting and portfolio administration
• Relationship management
The BoD assesses the performance of the operating segments based on gross segment results which are determined by the
allocation of directly attributable revenues and expenses for the respective operating segment. Therefore, the gross results per
operating segment do not include the allocation of expenses that are not directly attributable to the operating segment. As the
Group pursues a fully integrated investment approach, many professionals are engaged in assignments across several operating
segments within the private markets asset classes. Thus, only the personnel expenses of professionals entirely dedicated to a
single operating segment have been allocated to the respective operating segments. This has led to the majority of personnel
expenses being unallocated to any of the operating segments. The same applies to other operating expenses. Depreciation and
amortization have also not been allocated to the operating segments. All non-directly attributable elements of profit or loss are
summarized in the column labelled ‘Unallocated’.
Management believes that this is the most relevant way to report the results of its operating segments.
There were no intersegment transactions and, as such, no eliminations are necessary.
48 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Operating segments
Private
equity
Private
debt
Private
real estate
Private
infra-
structure
Total
reportable
segments Unallocated
Management fees and other revenues
944.6
200.9
212.6
251.2
1'609.3
Revenue deductions related to management fees
and other revenues
(125.0)
(21.9)
(36.7)
(32.4)
(216.0)
Performance fees
1'182.5
Revenue deductions related to performance fees
(79.8)
63.0
(1.5)
12.2
(0.3)
21.1
1'278.8
(0.6)
(82.2)
2021
Total
1'609.3
(216.0)
1'278.8
(82.2)
Revenues from management services, net
1'922.3
240.5
187.8
239.3
2'589.9
-
2'589.9
Other operating income
14.3
1.8
8.2
10.7
35.0
Revenues and other operating income
1'936.6
242.3
196.0
250.0
2'624.9
3.8
3.8
38.8
2'628.7
Personnel expenses
Other operating expenses
(251.0)
(75.7)
(46.3)
(57.1)
(430.1)
(430.5)
(860.6)
(3.8)
(0.7)
(2.8)
(0.9)
(8.2)
(69.8)
(78.0)
Gross segment result before depreciation and
amortization
1'681.8
165.9
146.9
192.0
2'186.6
(496.5)
1'690.1
Depreciation and amortization
(39.7)
(39.7)
Gross segment result
1'681.8
165.9
146.9
192.0
2'186.6
(536.2)
1'650.4
Reconciliation to profit for the period:
Net finance income
Income tax expense
Profit for the period
75.8
(262.6)
1'463.6
Partners Group | 49
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
2020
Operating segments
Private
equity
Private
debt
Private
real estate
Private
infra-
structure
Total
reportable
segments
Unallocated
Total
Management fees and other revenues
722.3
176.5
226.8
171.4
1'297.0
1'297.0
Revenue deductions related to management fees
and other revenues
Performance fees
Revenue deductions related to performance fees
(87.0)
229.0
(7.2)
(16.6)
(56.0)
(21.7)
(181.3)
18.9
(0.1)
0.7
(3.0)
28.1
276.7
(10.3)
(181.3)
276.7
(10.3)
Revenues from management services, net
857.1
178.7
168.5
177.8
1'382.1
-
1'382.1
Other operating income
10.1
1.9
9.3
5.9
27.2
Revenues and other operating income
867.2
180.6
177.8
183.7
1'409.3
3.0
3.0
30.2
1'412.3
Personnel expenses
Other operating expenses
(66.0)
(43.5)
(21.6)
(28.5)
(159.6)
(270.4)
(430.0)
(2.7)
(1.9)
(1.7)
(1.4)
(7.7)
(60.8)
(68.5)
Gross segment result before depreciation and
amortization
798.5
135.2
154.5
153.8
1'242.0
(328.2)
913.8
Depreciation and amortization
(38.4)
(38.4)
Gross segment result
798.5
135.2
154.5
153.8
1'242.0
(366.6)
875.4
Reconciliation to profit for the period:
Net finance income
Income tax expense
Profit for the period
53.2
(123.8)
804.8
50 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Geographical information
The operating segments are managed on a worldwide basis with Switzerland as the headquarters. Local offices ensure access
to clients and investment opportunities. While investment management services are primarily provided out of Switzerland,
local offices such as Guernsey and Luxembourg serve as the Group’s main fund hubs. In presenting information on the basis of
geographical operating segments, respective revenue is based on the geographical location where the revenues are invoiced and
collected.
In millions of Swiss francs
Switzerland1)
Guernsey
Luxembourg
US
Others
Revenues from management services,
net
2021
2020
143.7
1'047.4
769.2
396.4
233.2
(8.9)
681.3
398.3
200.9
110.5
Total revenues from management services, net
2'589.9
1'382.1
1) Revenue deductions related to management fees, performance fees and other revenues are largely reimbursed by Swiss entities (2021: CHF 131.2 million; 2020: CHF 85.2 million).
The respective revenues do not correspond with the profits in these countries as they are subsequently allocated to the Group’s
operating entities based on the Group’s transfer pricing policy which complies with the OECD Transfer Pricing Guidelines.
In 2021 and 2020, no direct counterparty of the Group contributed more than 13% to the Group’s revenues from management
services, net.
4. Remuneration
4.1. Personnel expenses
In millions of Swiss francs
Salaries and cash bonus
Share-based payment expenses
Other long-term benefits (management carry program)
Retirement schemes - defined contribution plans
Retirement schemes - defined benefit plans
Other social security expenses
Other personnel expenses
Total personnel expenses
4.2.
4.5.2.
2021
2020
(406.3)
(54.7)
(268.5)
(23.3)
(4.8)
(80.6)
(22.4)
(258.7)
(56.7)
(55.0)
(16.1)
(3.5)
(20.8)
(19.2)
(860.6)
(430.0)
The average number of employees in 2021 was 1’533 (2020: 1’516), which is equivalent to an average of 1’516 full-time
employees (2020: 1’504).
The increase in other social security expenses was driven by higher personnel expenses as well as higher accruals for social
security costs in relation to share-based payment plans that were driven by the increase of the Company’s share price.
Partners Group | 51
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
4.2. Share-based payment expenses
The Group recognized the following expenses for grants in 2021, as well as in previous periods:
In millions of Swiss francs
Note
2021
2020
Grants 2015 (options and non-vested shares)
Grants 2016 (options and non-vested shares)
Grants 2017 (options and non-vested shares)
Grants 2018 (options and non-vested shares)
Grants 2019 (options and non-vested shares)
Grants 2020 (options and non-vested shares)
Grants 2021 (non-vested shares)
Share grants at start of employment
Total options and non-vested shares
Grants 2017 (MPP)
Grants 2018 (MPP)
Grants 2019 (MPP)
Grants 2020 (MPP)
Grants 2020 (MIP)
Grants 2021 (MPP)
Grants 2021 (MIP)
Total MPP and MIP
(0.8)
(1.1)
(2.9)
(5.4)
(15.7)
(17.4)
(1.3)
(44.6)
(2.0)
(4.6)
(2.9)
(2.6)
(0.1)
(0.7)
(1.5)
(2.3)
(7.8)
(14.3)
(10.9)
(2.6)
(40.2)
(1.2)
(3.0)
(1.9)
(2.6)
(0.4)
(4.3)
(1.1)
(14.5)
(12.1)
4.3.1.
4.4.
4.3.2.
4.3.2.
4.3.2.
Total share-based payment expenses1)
(54.7)
(56.7)
1) Share-based payment expenses for non-executive members of the BoD of CHF 0.8 million (2020: 0.6 million) are disclosed as a part of third party services (see note 10.).
4.3. Options, non-vested shares and Management Performance Plan
The Group has a long history of granting equity incentives to its employees. These are awarded at year-end through options,
shares and the Management Performance Plan (“MPP”).
4.3.1. Non-vested shares and options
The Employee Participation Plan (“EPP”) aims to align employee interests with those of external shareholders. As in previous
years, the 2021 plan was a shares-only plan for the Group’s employees and its allocation to departments, teams and individuals
was dependent on their performance and contribution to the overall achievement of the firm’s goals during the period.
EPPs follow a linear vesting model, with proportionate annual vesting over a three- or five-year period following the awards,
depending on the rank of the employee and contingent upon the employee remaining with the Group during the respective
service period.
Since 2015, the Group awards a Management Incentive Plan (“MIP”) to select senior members of management and members
of management who have significantly contributed to the firm’s success in the past and who have the potential to do so in the
future. Until 2020, the MIP was a long-term option-only plan that was allocated in two tranches that followed a five-year and
six-year cliff-vesting model, respectively. In 2021, the Group replaced the call option that focused entirely on the Partners Group
Holding AG share price performance with the development of the Management Fee EBIT (refer to 4.3.2).
52 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Number and weighted average exercise price
The number and weighted average exercise price of options and non-vested shares developed as follows:
Outstanding as of 1 January
Forfeited during the period
Exercised during the period
Granted during the period - options
Granted during the period - shares
Outstanding as of 31 December
Weighted average
exercise price
(in CHF)
Number of
instruments
Weighted average
exercise price
(in CHF)
Number of
instruments
2021
2021
2020
2020
716.38
362.32
480.95
1'484'115
(25'457)
(315'377)
24'105
662.51
617.24
295.84
1'045.00
1'560'494
(45'154)
(199'488)
111'225
57'038
772.91
1'167'386
716.38
1'484'115
Exercisable as of 31 December
198'251
142'089
Of the outstanding 1’167’386 options and non-vested shares (31 December 2020: 1’484’115), 198’251 options are exercisable
immediately (31 December 2020: 142’089). All other options and non-vested shares are restricted until at least 29 September
2022.
The outstanding instruments are split by strike price and grant year as follows:
Numbers of instruments outstanding
Grant year
Options granted in 2011
Options granted in 2012
Options granted in 2013 and 8.1.2014
Options granted in 2014
Options granted in 2015
Options granted in 2015
Options granted in 2015
Options granted in 2016
Options granted in 2016
Options granted in 2017
Options granted in 2017
Options granted in 2018
Options granted in 2018
Options granted in 2019
Options granted in 2019
Options granted in 2020
Non-vested shares granted from 2017 to 2021
Total instruments outstanding
Strike price in CHF
31 December 2021
31 December 2020
195.00
236.00
270.00
324.00
340.00
450.00
446.00
682.00
593.00
805.00
810.00
975.00
800.00
965.00
807.60
1'045.00
n/a
11'879
20'576
2'086
1'418
4'000
1'032
147'150
10'110
291'000
35'078
191'500
18'489
196'150
20'890
108'925
107'103
9'468
24'927
35'291
5'358
1'418
59'500
6'127
325'000
10'110
291'000
35'078
191'500
18'489
196'150
20'890
111'225
142'584
1'167'386
1'484'115
Partners Group | 53
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
The fair value of the non-vested shares granted is based on the share price at the date of grant.
Fair value of shares granted in 2021 and related assumptions:
Date of grant
18.11.2021
31.12.2021
18.11.2021
18.11.2021
Vested shares
Vested shares Non-vested shares Non-vested shares
Fair value per share at measurement date (share price in CHF)
1'627.00
1'512.50
1'627.00
1'627.00
Vesting conditions
at grant
at grant
3 years
5 years
Total shares granted
Total value granted in 2021
(in millions of CHF)
Gross amount recognized in profit or loss
(in millions of CHF)
Net amount recognized in profit or loss
(in millions of CHF)
Total amount recognized in profit or loss
(in millions of CHF)
488
0.8
0.8
0.8
455
0.7
0.7
0.7
- recognized in personnel expenses related to the grant 2021 (in millions of CHF)
- recognized in third party services related to the grant 2021 (in millions of CHF)
1'302
21'860
2.1
0.6
0.6
35.6
9.6
9.6
11.7
10.9
0.8
54 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
4.3.2. Management Performance Plan & Management Incentive Plan
(a) Management Performance Plan (“MPP”)
Characteristics
In 2017, the Group introduced the MPP for members of the Executive Team and executive members of the Board of Directors. In
2021, the Group further amended the MPP by replacing the option-like component that focused entirely on the Partners Group
Holding AG share price performance with the development of the Management Fee EBIT as defined in the Alternative Performance
Metrics on page 30. Information on MPPs of prior years are presented in the annual report of the respective year.
In the first five years following the grant (years 1 to 5), the intrinsic value of the MPP is determined by assessing the growth of
the Management Fee EBIT. The 2021 MPP restricts payouts to a positive Management Fee EBIT development above a target
growth rate relative to the Management Fee EBIT of the financial year at grant. The payout restriction will be assessed on the
basis of the Management Fee EBIT for the fifth financial year after the grant as an intermediate step. For example, for the MPP
allocated in 2021, the Management Fee EBIT payout restriction is assessed based on the Management Fee EBIT for 2026. When
the Management Fee EBIT for 2026 is below CHF 1’140 million, equal to a 5% Management Fee EBIT growth rate (the floor-strike
Management Fee EBIT), the intrinsic value will by default be fixed to zero and there will be no future payout of the plan; when the
Management Fee EBIT for 2026 is above CHF 1’800 million, equal to a 15% Management Fee EBIT growth rate (the cap-strike
Management Fee EBIT), the intrinsic value by default cannot exceed 11.1x the initial grant value.
Over the period following the fifth financial year after the grant (years 6 to 14), the MPP payout commences if the intrinsic value
on the basis of the Management Fee EBIT for the fifth financial year after the grant is positive. The total payout can deviate from
the intermediate intrinsic value calculated based on the fifth financial year after the grant. The total payout is dependent on the
achievement of a performance fee target, which ultimately derives from active value generation and the realization of investment
opportunities in underlying client portfolios. Any payout will be in the form of shares equal to the value of the respective payout.
The volume-weighted average share price of a defined period before the payout is used as reference price. For further details
regarding the MPP, please refer to the Compensation Report.
Vesting parameters
MPP grants vest linearly over a period of five years. The linear vesting is subject to a minimum five-year tenure in the respective
committee. Before that, the MPP has a five-year cliff vesting attached. Any holder of unvested MPP rights leaving the Group has
the obligation to forfeit his or her unvested interest back to the Company.
(b) Management Incentive Plan (“MIP”)
Characteristics
In 2015, the Group introduced the MIP for senior members of management and members of management who have significantly
contributed to the Group’s success in the past and who have the potential to do so in the future. In line with the changes to MPP
in 2021, the Group replaced the call option that focused on the Partners Group Holding AG share price performance with the
development of the Management Fee EBIT. Information on MIPs of prior years are presented in the annual report of the respective
year.
The participation rights to the 2021 MIP were granted on 18 November 2021 and are allocated in two tranches in March 2022 and
March 2023. These participation rights are based on the Management Fee EBIT for 2021 and 2022, respectively.
The determination of the intrinsic value of the MIP follows the same principles as the MPP (see (a) above for details on the MPP
and (c) below for the valuation) with the same floor-strike and cap-strike Management Fee EBIT. The MIP payout is based on
the intrinsic value at the end of the fifth financial year (tranche 1) and sixth financial year (tranche 2) after the grant, i.e. the
Management Fee EBITs for 2026 and 2027 form the basis of the intrinsic value of the 2021 MIP. Any payout will be in the form of
shares equal to the value of the respective payout. The volume-weighted average share price of a defined period before the payout
is used as the reference price.
Vesting parameters
MIP participation rights are subject to a five-year (tranche 1) and six-year (tranche 2) cliff-vesting restriction (starting at the date
of grant) and a two-year non-compete post-vesting agreement. Any holder of unvested MIP rights leaving the Group has the
obligation to forfeit his or her unvested interest back to the Company.
Partners Group | 55
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(c) Valuation of MPP and MIP
In accordance with the option-like characteristics of the MPP and MIP, the allocation date fair value is calculated similarly to the
valuation of a call spread (a set of two calls: buying a call right and selling a call right at the same time) on Management Fee EBIT.
The Black Scholes model is used to value the option element of the contract. MPP and MIP rights are priced in consideration of
both the floor-strike Management Fee EBIT (floor/short call), which determines the price at which the Group sells the right to an
MPP and MIP recipient, and the cap-strike Management Fee EBIT (cap/long call), which determines the price at which the Group
would buy the right from an MPP and MIP recipient, respectively. The difference between the calculated prices of these two
rights is considered the net price of the instrument which in turn is used to calculate the allocation date fair value.
Fair value of MPP and MIP granted in 2021 and related assumptions:
Date of allocation
Management Fee EBIT (in millions of CHF)
Strike (in millions of CHF)
Vesting conditions
Expected volatility
Expected term of execution
Expected dividend ratio
Risk-free interest rate (based on swap rates)
Total fair value of the 2021 participation right (in millions of CHF)
Grants in 2021 to:
2021 MPP recipients
2020 MIP recipients (tranche 2)1)
2021 MIP recipients (tranche 1)
2021 MIP recipients (tranche 2)2)
Amount recognized in profit or loss (in millions of CHF):
MPP
MIP
Gross amount recognized in profit or loss (in millions of CHF)
Forfeitures
Net amounts recognized in profit or loss (in millions of CHF)
- recognized in personnel expenses related to grant 2021 (in millions of CHF)
- recognized in personnel expenses related to grant 2020 (in millions of CHF)
Short-Call
Long-Call
March 2022
March 2022
895.0
895.0
1'140.0
1'800.0
5 years
18.0%
5 years
0.0%
0.0%
59.7
5 years
18.0%
5 years
0.0%
0.0%
% of 2021
participation right Vesting conditions
In millions of CHF
26.7%
5.0%
6.8%
n/a
5 years
5 years
5 years
6 years
15.9
3.0
4.1
3.3
4.3
1.5
5.8
(0.0)
5.8
5.4
0.4
1) Under the 26 October 2020 MIP, the Group granted participation rights equaling the fair value of CHF 6.0 million. The amount is allocated to the participants in two tranches, CHF 3.0 million in
October 2020 and CHF 3.0 million in March 2022. As both parties have a common understanding of the terms and conditions and participants have begun rendering services in respect of both
tranches, the Group recognizes expenses for both tranches beginning in 2020.
2) Under the 18 November 2021 MIP, the Group granted participation rights equaling the fair value of CHF 7.3 million. The amount is allocated to the participants in two tranches, CHF 4.1 million
in March 2022 and CHF 3.3 million in spring 2023. As both parties have a common understanding of the terms and conditions and participants have begun rendering services in respect of both
tranches, the Group recognizes expenses for both tranches beginning in 2021.
The applied expected volatility is based on the volatility of the Management Fee EBIT of the last 20 quarters.
56 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
4.4. Entry shares
In 2021, the Group further granted 1’993 (2020: 1’930) shares totaling CHF 2.6 million (2020: CHF 1.3 million) to employees
of the Group that commenced employment with the Group during the year. These shares are subject to a vesting period of one
year. In addition, the shares are subject to a maximum five-year selling restriction, which is waived if the employee resigns from
the Group before the end of the restriction period.
4.5. Employee benefits
In millions of Swiss francs
Net defined benefit asset
Total employee benefit asset
Net defined benefit liability
Accrued variable compensation (cash bonus)
Management Carry Plan
Other employee benefit liabilities
Total employee benefit liabilities
Current liabilities
Non-current liabilities
Balance as of 31 December
31 December 2021 31 December 2020
10.5
10.5
(292.0)
(276.2)
(15.9)
(584.1)
(288.1)
(296.0)
(584.1)
-
(2.4)
(161.5)
(142.6)
(14.5)
(321.0)
(107.4)
(213.6)
(321.0)
4.5.1. Performance fee related compensation
Each year, the Nomination & Compensation Committee (“NCC”) allocates up to 40% of recognized performance fees to the
Performance Fee Compensation Pool which is then distributed to an eligible group of employees.
The promise represents a constructive obligation towards the eligible group of employees. The pool is allocated to the individual
employees via the MCP (see (a) below) and the MPP (see note 4.3.2.) with the remainder, i.e. the difference between the
Performance Fee Compensation Pool and the MCP/MPP allocations, being allocated via the Performance Fee Bonus Pool (see (b)
below).
In 2021, performance fees recognized in the consolidated income statement amounted to CHF 1’196.6 million (2020: CHF 266.4
million), of which CHF 285.3 million (2020: CHF 58.4 million) had been pre-allocated via the Management Carry Plan (“MCP”)
(including social security expenses) and CHF 35.9 million (2020: CHF 5.1 million) via the MPP. In addition, CHF 9.8 million (2020:
CHF 0.0 million) had been accrued for social security costs in relation to the MPP and CHF 147.6 million (2020: CHF 43.1 million)
had been allocated via the Performance Fee Bonus Pool. In 2021, the payout amounted to CHF 212.3 million for these schemes
(2020: CHF 156.4 million). Based on performance fees invoiced as of 31 December 2021, the Group expects a cash payout of
CHF 196.1 million (2020: CHF 56.9 million) for these schemes in the first half of 2022.
Partners Group | 57
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(a) Management Carry Plan allocation
A portion of the performance fees recognized from investments made during a relevant investment period is allocated to the
broader management teams. The allocation is based on the MCP that was introduced in 2012 and is discretionarily granted to
employees on an annual basis. The grants are only paid out to the eligible employees once the performance fees are collected by
the Group.
Performance fees depend on the performance attributable to investments made. The Group recognizes expenses related to
the MCP in personnel expenses when the payment of the related performance fees becomes sufficiently visible. This is in the
period in which performance fees are recognized in the consolidated income statement, which is generally before the effective
collection of such performance fees. Until the cash amount is paid to eligible employees, the corresponding liabilities are
recognized as employee benefit liabilities. The part of the liabilities that is not expected to be settled before twelve months after
the end of the reporting period is presented as non-current liabilities.
(b) Performance Fee Bonus Pool allocation
The Performance Fee Bonus Pool, i.e. the difference between the Performance Fee Compensation Pool and the MCP/MPP
allocation, is distributed among the employees based on their contribution to performance. The part of the Performance Fee
Bonus Pool that is not expected to be settled before twelve months after the end of the annual reporting period in which the
employees render the related services is presented as non-current liabilities.
4.5.2. Defined benefit plan
The pension plan for Swiss employees (“the Pension Fund”) is a defined benefit plan. The Pension Fund provides benefits for
retirement, disability and surviving dependents that meet or exceed the minimum benefits required under the Federal Law on
Occupational Retirement, Survivors’ and Disability Insurance (“LOB” also referred to as “BVG”), including the legal coordination
charge, which is also insured. The monthly premium to fund the Pension Fund’s benefits is split equally between the employer
and the employees. Contributions, which vary by the age of the employees, range from 6-13% of the covered salary and are
credited to the employees’ individual retirement savings accounts. The Pension Fund is responsible for capital investments
and pursues an investment strategy with a prescribed investment policy. The Group assumes an average retirement age of 62
(female) and 63 (male), respectively. Upon retiring (including early and partial retirement), insured persons are entitled to a lifelong
retirement pension if employees do not choose to withdraw the entire balance, or portion thereof, of their individual retirement
savings accounts in the form of a capital payment.
The Pension Fund is administered by Gemini Sammelstiftung, Zurich/Switzerland, which is legally separate from the Group
and is governed by a foundation board. In addition, there is a pension fund commission comprised of two employee and two
employer representatives. The duties of the foundation board, as well as the pension fund commission, are laid out in the LOB
and the specific pension fund rules. They are required by law to act in the best interest of the participants and are responsible
for setting certain policies (e.g. investment, contribution and indexation policies) for the Pension Fund. At least four times a year,
the foundation board, as well as the pension fund commission, meet to analyze consequences and decide on adjustments in the
investment strategy.
Pursuant to the LOB, additional employer and employee contributions may be imposed whenever a significant funding deficit
arises in accordance with the LOB. The Pension Fund is exposed to actuarial risks, such as investment risk, longevity risk,
disability risk, foreign currency risk and interest rate risk.
In addition to the pension plan for Swiss employees, a defined benefit plan for Swiss management also provides retirement
benefits and risk insurance for death and disability for components of remuneration in excess of the maximum insurable amount
of salary under the plan described above.
58 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Development of defined benefit asset/(obligation)
In millions of Swiss francs
2021
2020
Present value of benefit obligation as of 1 January
(88.1)
(79.2)
Included in profit or loss:
Current service cost (employer)
Interest expense on benefit obligation
Plan amendment
Included in other comprehensive income:
Actuarial gains/(losses) on benefit obligation arising from:
- change in demographic assumptions
- change in financial assumptions
- experience gains/(losses)
Other:
Employee contributions
Benefit payments
Present value of benefit obligation as of 31 December
Fair value of plan assets as of 1 January
Included in profit or loss:
Interest income on plan assets
Administration cost
Included in other comprehensive income:
Actuarial gain/(loss) on plan assets
Other:
Employer contributions
Employee contributions
Benefit payments
Fair value of plan assets as of 31 December
Net defined benefit asset/(obligation) as of 31 December
(4.8)
(0.1)
6.6
3.2
(12.5)
(3.3)
1.1
(97.9)
(4.4)
(0.2)
1.0
(2.3)
(1.1)
(3.1)
1.2
(88.1)
85.7
76.8
0.1
(0.1)
17.2
3.3
3.3
(1.1)
108.4
10.5
0.2
(0.1)
3.8
3.1
3.1
(1.2)
85.7
(2.4)
The weighted average duration of the net defined benefit obligation is 15.5 years as of 31 December 2021 (2020: 17.1 years).
Partners Group | 59
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Asset allocation as of 31 December
Cash
Public debt
Public equity
Private markets
Semi-liquid
Alternatives/other
Total
2021
2020
5.0%
5.2%
32.5%
52.5%
3.4%
1.4%
100.0%
4.6%
11.8%
30.2%
51.6%
1.8%
100.0%
Principal actuarial assumptions
The calculation of the net defined benefit asset/(obligation) included the following principal actuarial assumptions:
Principal actuarial assumptions as of 31 December
2021
2020
Discount rate
Interest rate on retirement credits
Average future salary increases
Future pension increases
Mortality tables used
Mortality model used
Sensitivity analysis
0.30%
1.00%
1.50%
0.00%
0.10%
1.00%
1.50%
0.00%
BVG 2020 (GT)
BVG 2015 (GT)
BFS
Menthonnex
Reasonably possible changes as of the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation and current service cost by the amounts presented below:
In millions of Swiss francs
Decrease of discount rate (-0.5%)
Increase of discount rate (+0.5%)
Decrease of salary increase (-0.5%)
Increase of salary increase (+0.5%)
Shorter life expectancy (-1 year)
Longer life expectancy (+1 year)
Impact on defined
benefit obligation
Impact on current
service cost
(employer)
(8.4)
7.3
1.1
(1.1)
0.2
(0.3)
(0.7)
0.6
0.1
(0.1)
0.0
(0.0)
Although the analysis above does not take into account the full distribution of expected cash flows under the defined benefit
plan, it does provide an approximation of the sensitivity of the assumptions presented.
The expected employer contributions in 2022 are estimated to be CHF 3.3 million.
60 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
5. Financial instruments including related income and expense, risks and
measurement
5.1. Finance income and expense
In millions of Swiss francs
Note
2021
2020
Interest income calculated using the effective interest rate method
Net gains on fair value through profit or loss instruments
Share of results of associates (Pearl)
Net foreign exchange gains
Other finance income
Total finance income
Interest expense calculated using the effective interest rate method
Other finance expense
Net foreign exchange losses
Total finance expense
Total net finance income
5.2. Other operating income
In millions of Swiss francs
Compensation from short-term loans
Share of results of associates (LGT)
Other income
Total other operating income
5.5.
6.
Note
5.4.1.
6.
2.8
117.0
2.7
122.5
(8.9)
(4.4)
(33.4)
(46.7)
2.8
51.7
0.7
10.3
0.0
65.5
(8.2)
(4.1)
(12.3)
75.8
53.2
2021
2020
27.5
0.0
11.3
38.8
25.3
0.0
4.9
30.2
Partners Group | 61
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
5.3. Financial instruments
5.3.1. Financial instruments by category
The Group’s financial assets can be classified into the respective categories as follows:
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Financial assets
Financial assets at amortized cost
Cash and cash equivalents
Fee receivables
Short-term loans
Other receivables
Accrued revenues
Other financial assets
Financial assets at fair value through profit or loss
Mandatorily measured at fair value through profit or loss
Derivative assets held for risk management
Financial investments
Assets held for sale
Total financial assets
5.4.1.
5.4.1.
5.4.1.
5.4.1.
5.3.4.
5.3.2.
5.3.3.
910.7
353.2
1'489.2
24.9
264.7
532.2
1'227.6
225.4
673.5
18.7
221.3
353.4
3'574.9
2'719.9
7.7
715.2
79.5
802.4
4'377.3
3.3
615.6
305.7
924.6
3'644.5
62 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
The Group’s financial liabilities can be classified into the respective categories as follows:
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Financial liabilities
Financial liabilities at amortized cost
Trade payables
Cash collateral for forward contracts
Accrued revenue deductions
Other payables
Goods and services received not yet invoiced1)
Lease liabilities
Long-term debt
Other long-term liabilities
Financial liabilities at fair value through profit or loss
Mandatorily measured at fair value through profit or loss
Liabilities held for sale
Derivative liabilities held for risk management
Other long-term liabilities
Total financial liabilities
7.
7.
7.
7.
7.
8.
13.
5.4.3.
5.3.3.
7.
5.4.3.
99.2
7.7
98.6
49.8
39.4
60.8
799.1
50.8
53.1
1.8
104.3
29.4
28.2
66.9
798.9
38.7
1'205.4
1'121.3
42.6
1.0
0.3
43.9
1'249.3
254.6
1.6
0.3
256.5
1'377.8
1) Goods and services received not yet invoiced has been added to this table for 2021. Prior year numbers have been re-presented accordingly.
5.3.2. Financial investments
The Group holds financial investments in various investment programs that it manages. These financial investments typically
account for a stake of one percent in an investment program. Within the investment programs, the Group typically performs
investment management activities for the benefit of external investors under a predetermined investment policy and receives a
predetermined management fee and, where applicable, a performance fee for its services which are presented as revenues from
management services in the consolidated income statement.
In millions of Swiss francs
2021
2020
Balance as of 1 January
Additions
Distributions/disposals
Transfers from assets and liabilities held for sale
Change in fair value of investments held at period end
Exchange differences
Balance as of 31 December
615.6
113.4
(153.5)
38.4
110.1
(8.8)
715.2
605.3
53.8
(65.7)
45.8
(23.6)
615.6
Partners Group | 63
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
As of the relevant balance sheet date, the Group held financial investments in investment programs, split into the following
operating segments:
In millions of Swiss francs
31 December 2021 31 December 2020
Private equity
Private debt
Private real estate
Private infrastructure
Total financial investments
347.9
214.5
72.3
80.5
715.2
286.5
224.9
54.8
49.4
615.6
5.3.3. Assets and liabilities held for sale
The Group provides seed financing to certain early stage investment programs managed by the Group. The decision to provide
seed financing to an investment program is made by the responsible bodies defined in the Group’s Rules of the Organization
and of Operations (“ROO”). These investment programs typically call the seed financing to invest in assets that are comparable
to the Group’s investments in investment programs that it manages (see note 5.3.2.). Therefore, the underlying assets of these
investment programs are typically financial assets valued at their adjusted net asset values.
Assets and liabilities of two (2020: four) such investment programs are classified and presented as assets and liabilities held for
sale. The assets and liabilities held for sale as of 31 December 2021 are comprised of private debt related assets and liabilities:
In millions of Swiss francs
31 December 2021 31 December 2020
Assets held for sale
Liabilities held for sale
Assets and liabilities held for sale, net
5.3.4. Other financial assets
79.5
(42.6)
36.9
305.7
(254.6)
51.1
The increase in other financial assets to CHF 532.2 million (2020: CHF 353.4 million) mainly resulted from recognized, but not
yet invoiced, performance fees which are not expected to be settled within twelve months (typically in closed-ended structures).
While the Group recognizes performance fees based on the mechanism described in note 19.7., the timing of invoicing depends
on pre-defined conditions with clients at the time when their initial contract is formed. These conditions must be fulfilled before
performance fees are invoiced. The expected timing of settlements is updated at the end of each reporting period.
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Long-term accrued revenues
Long-term loans
Other
Total other financial assets
5.3.5. Capital commitments
5.4.1.
5.4.1.
450.5
75.2
6.5
532.2
274.0
76.4
3.0
353.4
As of 31 December 2021, the Group had capital commitment contracts of CHF 1’036.6 million (2020: CHF 747.8 million),
of which CHF 455.1 million (2020: CHF 289.7 million) were not yet called by the relevant investment managers. Capital
commitments are called over time, typically between one to five years following the subscription of the commitment. Capital
commitments are not considered to be a financial liability as the commitments do not constitute an obligation to pay cash until
the capital is called.
64 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
5.4. Financial risk management
Risk exposure
The Group has exposure to the following financial risks arising from its holding of financial instruments:
• credit risk (related to receivables, cash and cash equivalents and loans);
• market risk (consisting of foreign currency risk, interest rate risk and price risk); and
• liquidity risk.
This note presents both qualitative and quantitative information about the Group’s exposure to each of the above listed risks and
the Group’s objectives, policies and processes for measuring and managing these risks.
Risk management
The Board of Directors (“BoD”) has the overall responsibility for the establishment and oversight of the Group’s risk management
framework. The BoD has formed the Risk & Audit Committee (“RAC”), which is responsible for developing and monitoring the
Group’s risk management policies. The RAC reports regularly to the BoD on its activities.
The Group’s risk management policies have been established to identify and analyze the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor risks and adherence to those limits. Management needs to adhere to detailed
approval processes as defined by the Rules of the Organization and of Operations. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions as well as in the Group’s activities. The Group, through its training
and management standards and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The RAC oversees how management monitors compliance with the Group’s risk management policies and procedures and
reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The RAC is assisted in
its oversight role by the Chief Risk Officer, the Chief Financial Officer as well as Internal Audit. Internal Audit undertakes both
regular and ad-hoc reviews of risk management controls and procedures and reports their findings to the RAC.
The RAC reviews and monitors the assessment of the risks to which the Group is exposed. In particular, the risk assessment
covers financial, operational, regulatory, legal, and conduct risk. As a part of its assessment, the RAC takes into consideration the
internal control system designed to monitor and reduce the risks of the Group.
5.4.1. Credit risk
The following sections present the Group’s exposure to credit risk and how it is managed by the Group. Credit risk arises from
the possibility that counterparties to transactions may fail to meet their obligations, causing financial losses to the Group.
These counterparties mainly comprise of banks, investment programs managed by the Group on behalf of its clients and their
underlying investments. In assessing the risk related to its counterparties, the Group considers both qualitative and quantitative
indicators such as overdue status, historical default rates, proprietary internal risk rating and financial information of the
investment programs managed by the Group. These indicators are typically based on data developed internally by the Group.
Additionally, the Group considers data obtained from external sources (e.g. default probabilities and financial information on
underlying investments). The Group has direct insights into the financial situation of most of its counterparties, since the majority
of the Group’s customers are investment programs that are managed by the Group on behalf of its clients and, to a lesser extent,
the investments of such investment programs for which the Group receives detailed financial information.
The assessment of loss allowances for financial assets is based on assumptions about the risk of default and expected loss rates.
The Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the
Group’s history and existing market conditions, as well as forward-looking estimates at the end of each reporting period. The
Group regularly monitors significant changes in credit risk against defined risk limits and budgets in line with the Group’s risk
management policies. When there is no reasonable expectation of full recovery, financial assets are written off.
The Group’s credit risk exposure arises from trade and other receivables, cash and cash equivalents and loans. To manage credit
risk, the Group periodically assesses counterparty credit risk, assigns credit limits on banks, monitors adherence to the risk-
weighted maximum exposure on loans, and takes actions to mitigate credit risks where appropriate.
Partners Group | 65
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(a) Trade and other receivables
Trade and other receivables are recognized initially at their transaction price and are subsequently measured at amortized
cost less loss allowances. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a
lifetime expected loss allowance for fee receivables. Under this approach, the lifetime expected credit loss is calculated based
on historical default rates over the expected life of the receivables, current conditions and adjustments for forward-looking
estimates.
The maximum exposure to credit risk resulting from financial activities, without considering netting agreements and without
taking into account any collateral held or other credit enhancements, is equal to the carrying amount.
In millions of Swiss francs
31 December 2021 31 December 2020
Fee receivables
Other receivables
Accrued income
Total trade and other receivables - short term
Long-term accrued revenues1)
Total trade and other receivables
1) Presented in the line item other financial assets in the consolidated balance sheet.
353.2
24.9
264.7
642.8
450.5
1'093.3
225.4
18.7
221.3
465.4
274.0
739.4
The majority of the Group’s customers are investment programs that are managed by the Group on behalf of its clients. This
gives the Group insights into the financial situations of such customers. Typically, receivables with such customers are backed by
unfunded client commitments. These commitments can be drawn upon to settle outstanding receivables and are jointly backed
by the respective clients of the investment program. The underlying assets in the investment programs serve as an additional
layer of security.
Measurement
To measure the expected credit losses, fee receivables are grouped based upon the number of days past due. Accrued income is
a financial instrument which typically relates to not yet invoiced fees and has similar risk characteristic as fee receivables. Due to
its nature, accrued income is considered not yet due.
The Group’s trade and other receivables balance as of 31 December 2021 is composed of more than 350 customers of which
the largest represents less than 10%. The historic default rate over the past 5 years has been consistently at 0.0% on the annual
revenues and, as of the reporting date, no material receivables were overdue (31 December 2020: not material). Additionally, the
Group is in direct discussion with the customers that have overdue outstanding amounts. Receivables are written off when there
is no reasonable expectation of recovery. For the year ended 31 December 2021, CHF 0.0 million of write offs were reported
(2020: CHF 0.0 million). Based on its assessment as of 31 December 2021, the Group’s expected credit losses amount to CHF
0.0 million (31 December 2020: CHF 0.0 million). Therefore, the Group has not recognized an allowance as of 31 December
2021 (31 December 2020: none recognized). The COVID-19 pandemic did not change the Group’s assessment with regard to the
credit risk related to trade and other receivables.
(b) Cash and cash equivalents
Cash and cash equivalents typically include balances with banks and financial institutions that feature a strong credit rating and
are cancelable on sight. The Group calculates a 12-month expected credit loss as a simplification for all cash and cash equivalents.
However, cash and cash equivalents are typically accessible within a day and latest within 35 days. The Group evaluates each
counterparty using an internal proprietary risk rating that includes several observable parameters such as credit risk ratings, credit
default swap levels, stock price, capital ratio and return on assets. The internal proprietary risk rating determines the expected
credit loss of its bank balances. For bank balances, typically, only independently rated parties with a minimum internal proprietary
risk rating of ‘high’ are accepted. This is typically a proxy of “A-3” or equivalent as per internationally recognized credit scale
short-term issue credit ratings definitions (such as Standard & Poor’s). In addition, the Group assigns a rating-based maximum
66 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
exposure limit by counterparty which acts as a further layer of protection. Exposure to these risks is closely monitored by the
Group and kept within predetermined parameters.
Measurement
The Group diversifies its cash and cash equivalents across various financial institutions to limit concentration exposure with any
one financial institution but is exposed to credit risk in the event of default of such financial institutions. The Group’s internal
proprietary risk scoring is scaled from 0-10, with 10 being the highest quality / lowest risk. No significant changes to estimation
techniques or assumptions were made during the reporting period, and therefore the internal proprietary risk rating is consistent
over the reporting period. On that basis, the expected credit loss on cash and cash equivalents as at 31 December 2021 was
determined as follows:
In millions of Swiss francs
Company internal propri-
etary risk scoring1)
Link to international
credit ratings2)
Scale 10-6: Low risk
Scale 5-3: Fair risk
Scale 2-1: Doubtful
Scale 0: Loss
Total
A
B
C
D
In millions of Swiss francs
Company internal propri-
etary risk scoring1)
Link to international
credit ratings2)
Scale 10-6: Low risk
Scale 5-3: Fair risk
Scale 2-1: Doubtful
Scale 0: Loss
Total
A
B
C
D
Gross carrying amount % Gross carrying amount
Weighted average ex-
pected credit loss rate
Expected
credit loss
31 December 2021
910.6
0.1
100%
0%
0.1%
0.4%
910.7
100%
0.5
0.0
0.5
Gross carrying amount % Gross carrying amount
Weighted average ex-
pected credit loss rate
Expected
credit loss
31 December 2020
1'222.8
4.8
100%
0%
0.1%
0.4%
1'227.6
100%
1.0
0.0
1.0
1) Internal proprietary risk scoring based on several observable parameters such as credit risk ratings, credit default swap levels, stock price, capital ratio, and return on assets.
2) For illustrative purposes, this column links the Company's internal proprietary risk scoring to internationally recognized credit scale short-term issue credit ratings (such as Standard & Poor's).
Cash and cash equivalents amounted to CHF 910.7 million as of 31 December 2021 (31 December 2020: CHF 1’227.6 million). The
risk-weighted average rating of the overall cash portfolio was ‘low risk’ as of 31 December 2021 (31 December 2020: ‘low risk’). The
largest bank exposure represents 19% percent of cash and cash equivalents, with a rating of 10 (equivalent to A-1+ as per Standard &
Poors) as of 31 December 2021 (31 December 2020: 24% with a rating of 10, equivalent to A-1+). The Group sets clear risk limits to
minimize the negative impact that may arise from risk concentrations on its counterparty and possible counterparty defaults. These
risk limits are regularly monitored and adherence to this risk framework is regularly reported to the RAC.
The Group considers that its cash and cash equivalents have a low credit risk based on the internal proprietary risk scoring. Based
on its assessment as of 31 December 2021, the Group has not identified any material expected credit losses (31 December 2020:
not material) and has not booked an allowance (31 December 2020: none). The COVID-19 pandemic did not change the Group’s
assessment with regards to balances with banks.
Partners Group | 67
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(c) Loans
The Group’s loans are composed of short-term and, to a lesser extent, long-term loans. The Group’s loans are typically granted to
various investment programs (including investment vehicles) managed by the Group on behalf of its clients. Typically, the loans to
investment programs are granted in the form of bridge loans, credit facility loans, or pre-financing loans.
The fact that short-term loans are typically granted to investment programs that are managed by the Group on behalf of its clients
gives the Group insights into the financial situation of such borrowers. In addition, most of the loans are backed by unfunded
commitments of the clients of the investment programs, which can be drawn upon to repay related loans and which are jointly backed
by such clients. The underlying assets in the investment programs serve as an additional layer of security. To manage default risks, the
Group ensures that loans to investment programs are classified according to their characteristics and corresponding risk weights and
measured against a risk budget. The monitoring of the risk budget forms part of management reporting. The loan approval process is
supported by a risk policy framework and pre-defined approval authorities. During the loan approval process, rigorous qualitative and
quantitative checks are applied to ensure a high quality of the Group’s loan portfolio.
Measurement
The Group reassesses the credit risks of its loans on a regular basis by calculating expected credit losses. The Group hereby
applies the general approach as required by IFRS 9. Under this approach, the 12-month expected credit loss is calculated
based on historical default rates, current conditions and adjustments for forward-looking estimates so long as the credit risk
has not increased significantly relative to the credit risk at the date of initial recognition (stage 1, ‘credit risk in line with original
expectations’). Otherwise, the Group switches to lifetime expected credit losses (stage 2, ‘lifetime ECL not credit impaired’,
or stage 3 ‘lifetime ECL credit impaired’). Stage 2 consists of loans for which a significant increase in credit risk has occurred
compared to original expectations. A significant increase in credit risk is typically presumed if compensation on short-term loans
and/or principal repayments are past due for more than 30 days. Stage 3 is typically characterized by compensation on short-
term loans and/or principal repayments being past due and for which no reasonable expectation for full recovery exists.
Short-term loans
The Group classifies its short-term loans into three categories (bridge loans, credit facility loans, pre-financing loans) based on
the underlying characteristics of the loans that are described in the table below. These characteristics, including the available
information about the borrower, determine the credit risk weights that in turn form the basis for the loan exposures and the
calculation of the expected credit loss, if any.
Risk weight per loan
Loan type
Risk weight
Characteristics
Bridge loans
Low
Loans to investment programs that are typically backed by unfunded client commitments. Investment
programs have a low risk of default and a strong capacity to meet contractual cash flows.
Credit facility loans
Low
Loans to investment programs that are backed by the underlying investment portfolio and are typically
of limited size compared to the overall investment portfolio, and hence with a low loan-to-value ratio.
Pre-financing loans
Fair
Loans to investment vehicles in an early stage with typically limited or no client commitments to pre-fi-
nance upcoming investments. As there are typically limited or no client commitments, these loans could
be exposed to the value development of the acquired investments in an adverse scenario. Therefore,
these loans are typically subject to higher risk weights and higher loan-to-value ratios than bridge loans
and credit facility loans.
Loan exposures are subject to ongoing monitoring. Over the term of the loans, the Group accounts for significant credit risks
by providing for expected credit losses on a timely basis. Over the past years the Group has not experienced any material credit
losses.
The Group calculates a 12-month expected credit loss as a simplification for all short-term loans for both stages 1 and 2.
However, the majority of the Group’s short-term loans typically matures within 1 and 3 months.
68 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
The following tables provide information about the exposure to credit risks and expected credit loss related to loans at 31
December 2021 and 2020:
In millions of Swiss francs
31 December 2021
Loan types
Internal risk weight
Nominal carrying
amounts Stage 1
Nominal carrying
amounts Stage 2
Nominal carrying
amounts Stage 3
Expected credit loss1)
Bridging loans
Credit facility loans
Pre-financing loans
Total
Low
Low
Fair
1'400.2
29.9
59.1
1'489.2
-
-
0.6
0.0
0.7
1.3
In millions of Swiss francs
31 December 2020
Loan types
Internal risk weight
Nominal carrying
amounts Stage 1
Nominal carrying
amounts Stage 2
Nominal carrying
amounts Stage 3
Expected credit loss1)
Bridging loans
Credit facility loans
Pre-financing loans
Total
Low
Low
Fair
610.4
32.8
30.3
673.5
-
-
0.6
0.0
0.4
1.0
1) The expected credit loss at stage 1 is the product of the loss expected in a stress scenario times the likelihood of such stress scenario to materialize with 12 months after the period-end date.
As of 31 December 2021, all short-term loans were in stage 1 and no transfers between the different stages were identified.
There was no indication of significant credit risk increases relative to the credit risks at the date of initial recognition. As of
31 December 2021, the number of outstanding short-term loans was 441 (31 December 2020: 271) and the average amount per
outstanding loan was CHF 3.4 million (2020: CHF 2.5 million). No counterparty represented more than 15% of the overall loan
portfolio. In 2021, the Group received an arm’s length compensation on short-term loans of CHF 27.5 million (2020: CHF 25.3
million) for the granting of short-term loans as part of its maintenance of investment programs, and hence as part of its operating
activities.
Based on its assessment as of 31 December 2021, the Group has not identified any material expected credit losses in relation to
its short-term loans and has not recognized any allowance for credit losses (31 December 2020: none). The COVID-19 pandemic
did not change the Group’s assessment with regards to the credit risk related to short-term loans.
Long-term loans
The majority of long-term loans amounting to CHF 75.2 million (31 December 2020: CHF 76.4 million) is composed of the
Group’s share in a syndicated loan granted to an investment project into which the Group has insight. The remainder of the loans
are typically composed of employee loans. The Group considers the borrowers to have strong capacity to meet their contractual
obligations. As of 31 December 2021, all long-term loans were in stage 1 and no transfers between the different stages were
identified. Based on its assessment of applying a fair risk weight on the long-term loans as of 31 December 2021, the Group
has identified expected credit losses of CHF 2.1 million in relation to its long-term loans (31 December 2020: CHF 2.1 million)
and has not recognized any allowance for credit losses (31 December 2020: none). The COVID-19 pandemic did not change the
Group’s assessment with regards to the credit risk related to long-term loans.
5.4.2. Market risk
Market risk is the risk that changes in market prices, such as foreign currency exchange rates, interest rates and prices, will affect
the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters. The Group may buy and sell derivatives in order to manage
certain market risks.
Partners Group | 69
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(a) Foreign currency risk
Foreign currency risk arises because the amounts of local currencies paid or received for transactions denominated in foreign
currencies may vary due to changes in exchange rates (transaction exposures) and because the foreign currency denominated
financial statements of the Group’s foreign subsidiaries may vary upon consolidation into the Swiss franc denominated Group
financial statements (translation exposures).
The Group is exposed to transactional foreign currency risk mainly on receivables, payables, cash and cash equivalents, employee
benefit liabilities as well as loans that are denominated in currencies other than the functional currency of the respective legal
entity of the Group. Foreign currency risk mainly results from exposures in Euros (EUR), US dollars (USD), British pounds (GBP)
and Singapore dollars (SGD). The Group’s hedging policy related to foreign currency risk is to economically hedge the risk with
the objective of limiting the volatility of Swiss francs against other denominated transactional currencies. Typically, the Group
hedges foreign currency exposures related to loans. Consequently, the Group’s net balance sheet currency risk after hedging is
limited mainly to intercompany receivables and payables, cash and cash equivalents, trade and other receivables and payables,
and employee benefit liabilities.
Sensitivity
The Group’s transactional foreign currency exposure at the end of the reporting period on the unhedged positions, expressed in
CHF, was as follows:
In millions of Swiss francs
31 December 2021
31 December 2020
Foreign currency exposure
Cash and cash equivalent
EUR
CHF
USD
CHF
58.7
84.0
GBP
CHF
5.9
SGD
CHF
Others
CHF
EUR
CHF
USD
CHF
1.4
11.2
25.8
105.7
Trade and other receivables
82.1
102.8
20.8
0.0
22.7
63.6
75.0
GBP
CHF
9.8
5.1
SGD
CHF
Others
CHF
1.0
6.0
32.9
Trade and other payables
(53.6)
(32.5)
(12.2)
(0.0)
(20.0)
(36.9)
(13.0)
(10.4)
(0.0)
(19.6)
Employee benefit liabilities1)
Short-term loans
(204.0)
86.6
(107.5)
Net intercompany positions
151.5
(5.5)
(77.4)
(89.7)
(34.1)
18.6
(148.4)
(6.5)
(59.9)
(7.5)
Net exposure
238.7
31.4
(62.9)
(88.3)
(20.2)
71.1
(88.2)
(2.0)
(58.9)
11.8
1) Employee benefit liabilities do not form part of financial instruments but are a significant source of foreign currency exposure, and therefore included in this table.
For the foreign currency exchange rates applied against the Swiss franc refer to note 19.5.
(b) Interest rate risk
The Group’s income and operating cash flows are substantially independent from changes in market interest rates. The Group
is mainly exposed to interest rate risk with respect to its cash and cash equivalents held at banks. Due to the short-term nature
of these balance sheet items and the relatively low sensitivity to interest rates, the Group currently does not actively manage its
interest rate risk. At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:
In millions of Swiss francs
Note
2021
2020
Variable rate instruments
Financial assets
Cash and cash equivalents
Financial liabilities
Cash collateral for forward contracts
Total variable rate instruments
70 | Partners Group
5.4.1.
7.
910.7
910.7
(7.7)
(7.7)
903.0
1'227.6
1'227.6
(1.8)
(1.8)
1'225.8
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Fixed rate instruments
Financial assets
Short-term loans
Long-term loans
Other
Financial liabilities
Lease liabilities
Long-term debt
Total fixed rate instruments
5.4.1.
5.4.1.
8.
13.
1'489.2
75.2
6.5
1'570.9
(60.8)
(799.1)
(859.9)
711.0
673.5
76.4
3.0
752.9
(66.9)
(798.9)
(865.8)
(112.9)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates on the balances at the reporting date would have increased/(decreased) annual
profit or loss before tax by the amounts shown below. This analysis assumes that all other variables, particularly foreign currency
exchange rates, remain constant.
In millions of Swiss francs
Profit or loss
2021
2020
100 bp increase
100 bp decrease
100 bp increase
100 bp decrease
Variable rate instruments
9.0
(9.0)
12.3
(12.3)
Fair value sensitivity analysis for fixed rate instruments
The Group does not designate any fixed rate financial assets or liabilities as at fair value through profit or loss. Therefore, changes
in market interest rates do not affect profit or loss.
(c) Price risk
The Group is exposed to market price risk (other than interest rate and foreign currency risk) because of its own investments in
investment programs which are classified at fair value through profit or loss.
Most of the Group’s investments are entered into under investment management contracts whereby the Group invests alongside
third-party investors in the Group’s investment programs invested in underlying private equity, private debt, private real estate,
or private infrastructure investments. These investments qualify, in accordance with IAS 32, as either equity instruments or debt
instruments. Typically, instruments qualifying as debt instruments contain embedded derivatives for which fair value is derived
from the adjusted net asset value of the underlying investment programs which in turn is based upon the value of the underlying
assets held within each of the investment programs.
Partners Group | 71
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In assessing the market risk associated with the Group’s investments, a volatility ratio was applied to each of its investments
classified as financial investments or assets and liabilities held for sale. The Group used long-term data to determine the
volatilities for each asset class.
In millions of Swiss francs
2021
Volatility
2020
Volatility
Carrying amount/volatility
Financial investments:
Private equity
Private debt
Private real estate
Private infrastructure
Assets and liabilities held for sale
Total
347.9
214.5
72.3
80.5
36.9
752.1
18%
8%
15%
12%
8%
286.5
224.9
54.8
49.4
51.1
666.7
18%
8%
15%
12%
12%
Based upon the applied long-term volatility for the individual asset classes, the Group is exposed to the following price risk on profit
or loss:
In millions of Swiss francs
Financial investments:
Private equity
Private debt
Private real estate
Private infrastructure
Assets and liabilities held for sale
Total
5.4.3. Liquidity risk
Profit or loss
2021
2020
62.6
17.2
10.8
9.7
3.0
103.3
51.6
18.0
8.2
5.9
6.3
90.0
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they become due. The Group’s approach
to managing liquidity risk is to ensure that it has sufficient liquidity to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group’s long-term
contracts with clients mitigate its exposure to liquidity risk.
In order to assess the development of its liquidity, the Group uses a cash flow forecasting tool which is integrated into the
budgeting and reporting process and assists in monitoring cash flow requirements.
Cash flow forecasting is performed at group level. Typically, the Group ensures that it has sufficient cash on hand to meet
expected operational expenses as well as the servicing of financial obligations, excluding the potential impact of extreme
circumstances that cannot reasonably be predicted. Surplus cash held by the Group’s subsidiaries, over and above the balance
required for working capital management, is transferred to the Company to the extent permitted by regulatory and legal
provisions. In addition, the BoD and the Executive Team formally monitor the liquidity available on a quarterly basis. The available
liquidity targeted should allow the Group to sustain its operations with minimal disruptions in a financial crisis scenario and/or a
depressed economic environment. The Group holds its cash in current accounts or invests it in time deposits and money market
deposits deemed to have appropriate maturities or sufficient liquidity to provide headroom as determined by the aforementioned
cash flow forecasts. Cash and cash equivalents are typically accessible within a day and latest within 35 days.
72 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Financing arrangements
The Group maintains the following lines of credit:
The Group has two unsecured credit facilities of CHF 460 million (31 December 2020: CHF 460 million) and CHF 375 million
(31 December 2020: CHF 375 million) with a syndicate of Swiss banks and a syndicate of Swiss and international banks,
respectively. These credit facilities can be used for general corporate purposes with a primary focus on working capital financing.
Interest rates are variable and determined by the relevant short-term interest rate plus a margin. The facilities are subject to
maximum debt covenants which have been met throughout the current and prior year.
An additional unsecured credit facility of CHF 30 million can be used for current account overdrafts or for fixed advances with a
maturity of up to six months (31 December 2020: CHF 30 million). Interest is set at a fixed interest rate. The facility is subject to
a maximum debt covenant which was met throughout the current and prior year.
Maturity of financial liability
The following table discloses the financial liabilities with their contractual maturities:
In millions of Swiss francs
31 December 2021
Note
Carrying
amount
Total
(undiscounted)
6 months
or less
6 - 12
months
13 - 24
months
25 - 60
months
More than
60 months
Trade payables1)
Goods and services received not yet invoiced
Derivative liabilities held for risk management1)
Accrued revenue deductions1)
Cash collateral for forward contracts1)
Other payables1)
Lease liabilities
Long-term debt
Other long-term liabilities2)
7.
7.
7.
7.
7.
7.
8.
99.2
39.4
1.0
98.6
7.7
49.8
60.8
13.
799.1
51.1
99.2
39.4
1.0
99.2
37.1
1.0
2.3
98.6
67.6
31.0
7.7
49.6
5.2
2.5
7.7
49.8
66.6
813.8
51.1
0.2
6.7
Unfunded commitments
5.3.5.
455.1
455.1
455.1
12.8
18.9
23.0
2.5
306.7
502.1
39.4
11.7
1) Presented in the line item trade and other payables in the consolidated balance sheet.
2) This line item includes long-term accrued liabilities related to the investment programs and other third parties.
1'661.8
1'682.3
725.0
40.2
54.7
337.3
525.1
Partners Group | 73
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
31 December 2020
Note
Carrying
amount
Total
(undiscounted)
6 months
or less
6 - 12
months
13 - 24
months
25 - 60
months
More than
60 months
Trade payables1)
Goods and services received not yet invoiced
Derivative liabilities held for risk management1)
Accrued revenue deductions1)
Cash collateral for forward contracts1)
Other payables1)
Lease liabilities
Long-term debt
Other long-term liabilities2)
7.
7.
7.
7.
7.
7.
8.
53.1
28.2
1.6
53.1
28.2
1.6
53.1
28.2
1.6
104.3
104.3
104.3
1.8
29.4
66.9
13.
798.9
39.0
1.8
29.4
6.1
2.5
1.8
29.4
72.9
816.3
39.0
5.8
10.9
23.2
26.9
2.5
307.1
504.2
30.4
8.6
Unfunded commitments
5.3.5.
289.7
289.7
289.7
1'412.9
1'436.3
412.4
110.1
43.8
338.9
531.1
1) Presented in the line item trade and other payables in the consolidated balance sheet.
2) This line item includes long-term accrued liabilities related to the investment programs and other third parties.
5.5. Fair value measurement
Overview
Fair value is the price that would be received by selling an asset or paid to transfer a liability in an orderly transaction between
knowledgeable market participants at the measurement date in the principal, or in its absence, the most advantageous market to
which the Group has access to at that date. The fair value of a liability reflects its non-performance risk. The Group measures fair
values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs - other than quoted prices included within level 1 – that are observable for assets or liabilities, either directly (i.e. as
prices) or indirectly (i.e. derived from prices) (level 2).
• Inputs for assets or liabilities that are not based on observable market data (i.e. unobservable inputs) (level 3).
The following table shows the fair value hierarchy of the Group’s financial assets and liabilities that are measured at fair value:
In millions of Swiss francs
Level 1
Level 2
Level 3
Total
31 December 2021
Derivative assets held for risk management1)
Assets held for sale
Financial investments2)
Financial assets
Derivative liabilities held for risk management3)
Liabilities held for sale
Other long-term liabilities
Financial liabilities
0.0
0.0
7.7
7.7
1.0
-
1.0
79.5
715.2
794.7
42.6
0.3
42.9
7.7
79.5
715.2
802.4
1.0
42.6
0.3
43.9
1) Presented in the line item trade and other receivables in the consolidated balance sheet.
2) Includes marketable securities of CHF 0.0 million that previously have been reported in a separate line in this table.
3) Presented in the line item trade and other payables in the consolidated balance sheet.
74 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Level 1
Level 2
Level 3
Total
31 December 2020
Derivative assets held for risk management1)
Assets held for sale
Financial investments2)
Financial assets
Derivative liabilities held for risk management3)
Liabilities held for sale
Other long-term liabilities
Financial liabilities
0.0
0.0
3.3
3.3
1.6
-
1.6
305.7
615.6
921.3
254.6
0.3
254.9
3.3
305.7
615.6
924.6
1.6
254.6
0.3
256.5
1) Presented in the line item trade and other receivables in the consolidated balance sheet.
2) Includes marketable securities of CHF 0.0 million that previously have been reported in a separate line in this table.
2) Presented in the line item trade and other payables in the consolidated balance sheet.
The carrying amounts for cash and cash equivalents, trade and other receivables, short-term loans, and trade and other payables
are expected to approximate the fair values given the short-term nature of these financial instruments. The carrying amounts for
other financial assets and the remaining other long-term liabilities are expected to approximate fair values since time values do
not materially differ (level 3 input).
The following tables show the reconciliation of all level 3 financial instruments in 2021 and 2020:
In millions of Swiss francs
Balance as of 1 January
Additions
Disposals
Change in fair value1)
Exchange differences
Balance as of 31 December
In millions of Swiss francs
Balance as of 1 January
Additions
Disposals
Change in fair value1)
Exchange differences
Balance as of 31 December
1) Presented in the line items finance income and finance expense in the consolidated income statement.
There were no transfers between levels in 2021 and 2020.
Financial assets
Financial liabilities
2021
921.3
178.9
(423.9)
117.0
1.4
794.7
254.9
42.7
(263.3)
(0.0)
8.6
42.9
2020
Financial assets
Financial liabilities
780.7
219.8
(83.3)
51.7
(47.6)
921.3
115.1
160.8
(1.0)
(0.0)
(20.0)
254.9
Partners Group | 75
ANNUAL REPORT 2021 ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Financial investments and assets and liabilities held for sale
Financial investments (see note 5.3.2.) and assets and liabilities held for sale (see note 5.3.3.), disclosed as level 3 financial
instruments, reflect the Group’s own investments in investment programs that the Group manages. For these investments,
the determination of fair value requires subjective assessment with varying degrees of judgment depending on liquidity,
concentration, pricing assumptions, the current economic and competitive environment and the risks affecting the specific
investments. In such circumstances, valuation is determined based on management’s judgment about the assumptions that
market participants would use in pricing the asset or liability (including assumptions about risk).
The Group applies control processes to ensure that the fair value of its own investments reported in the consolidated financial
statements, including those derived from pricing models, are in accordance with IFRS 13 and determined on a reasonable basis.
Such controls include reviews of profit or loss statements of underlying investments at regular intervals, risk monitoring and
reviews of price verification procedures and models, which are used to estimate the fair value of these investments by senior
management and personnel with relevant expertise who are independent of the trading and investment functions.
Control processes also include the review and approval of new underlying investments made on behalf of investors. The Group
has several investment committees. The investment selections and recommendations are made by the Specialized Investment
Committees and the Global Investment Committee, supported by the Global Portfolio Committee. These committees decide
whether or not new investments will be advised to the manager of the investment program.
Valuation techniques used to determine fair values of underlying investments
Financial investments held by the Group consist of underlying assets and liabilities within investment programs. In turn, these
investment programs are invested in direct and indirect equity and debt instruments. The following valuation techniques are
applied by the Group to determine fair values of underlying equity and debt instruments in line with IFRS 13:
• market approach;
• income approach; and
• adjusted net asset value method.
Securities traded on one or more securities exchanges are typically valued based on their respective market prices as of
measurement date adjusted for potential restrictions on the transfer or sale of such investment.
Underlying investments are valued using either of the described valuation techniques below.
Market approach
The market approach comprises valuation techniques such as market comparable companies and multiple techniques. A market
comparable approach uses quoted market prices or dealer quotes for similar instruments to determine the fair value of a financial
asset. A multiple approach can be used in the valuation of less liquid securities. Comparable companies and multiple techniques
assume that the valuation of unquoted direct investments can be assessed by comparing performance measure multiples of
similar quoted assets for which observable market prices are readily available. Comparable public companies based on industry,
size, development stage, strategy, etc. have to be determined. Subsequently, the most appropriate performance measure for
determining the valuation of the relevant direct investment is selected (these include but are not limited to EBITDA, price/
earnings ratios for earnings or price/book ratios for book values). Trading multiples for each comparable company identified
are calculated by dividing the value of the comparable company by the defined performance measure. The relevant trading
multiples might be subject to adjustment for general qualitative differences such as liquidity, growth rate or quality of customer
base between the valued direct investment and the comparable company set. The indicated fair value of the direct investment is
determined by applying the relevant adjusted trading multiple to the identified performance measure of the valued company.
Income approach
Within the income approach, the Group primarily uses the discounted cash flow method and the capitalization model. Expected
cash flow amounts are discounted to a present value at a rate of expected return that represents the time value of money
and reflects the relative risks of the direct investment. Direct investments into debt instruments can be valued by using the
instrument’s expected cash flows while direct investments into equity instruments can be valued by using the “cash flow
76 | Partners Group
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
to equity” method, or indirectly, by deriving the enterprise value using the “cash flow to entity” method and subsequently
subtracting the direct investment’s net debt in order to determine the equity value of the relevant direct investment. Expected
future cash flows based upon agreed investment terms or expected growth rates have to be determined. In addition, and based
on the current market environment, an expected return of the respective direct investment is projected. The future cash flows
are discounted to the present date in order to determine the current fair value.
Adjusted net asset value method
As a combination of the market approach and the income approach, the adjusted net asset value method is used. Indirect
investments of investment programs managed by the Group are typically valued at the indirect investments’ net asset values
last reported by the indirect investments’ general partners. When the reporting date of such net asset values does not coincide
with the investment programs’ reporting date, the net asset values are adjusted as a result of cash flows to/from an indirect
investment between the date of the most recently available net asset valuation and the end of the reporting period of the
investment program, and further information gathered by the Group during its on-going investment monitoring process. This
monitoring process includes, but is not limited to, binding bid offers, other market participant information on developments of
portfolio companies held by indirect investments or syndicated transactions, which involve such companies.
Unobservable input factors
Where available, valuation techniques use market-observable assumptions and inputs. If such information is not available, inputs
may be derived by reference to similar assets in active markets, from recent prices for comparable transactions or from other
observable market data. When measuring fair value, the Group selects the non-market-observable inputs to be used in its
valuation techniques based on a combination of historical experience, derivation of input levels based upon similar investment
programs with observable price levels and knowledge of current market conditions and valuation approaches.
Within its valuation techniques the Group typically uses different unobservable input factors. Significant unobservable inputs
include: EBITDA multiples (based on budgeted/forward-looking EBITDA or historical EBITDA of the issuer and EBITDA multiples
of comparable listed companies for an equivalent period), discount rates, capitalization rates, price/book as well as price/earnings
ratios and enterprise value/sales multiples. The Group also considers the original transaction prices, recent transactions in the
same or similar instruments and completed third-party transactions in comparable instruments and adjusts the model as deemed
necessary. Further inputs consist of external valuation appraisals and broker quotes. A significant portion of the investment
programs’ direct equity investments are measured using EBITDA multiples. EBITDA multiples used show wide ranges.
The value of level 3 direct investments valued by using unobservable input factors are directly affected by a change in that
factor. The change in valuation of level 3 direct investments may vary between different direct investments of the same category
as a result of individual levels of debt financing within such an investment.
Sensitivity of fair values
From a Group perspective, the fair value of financial investments and assets and liabilities held for sale is typically dependent
on the adjusted net asset value of the investment programs. A reasonably possible change in the adjusted net asset value would
have the following effects on the fair value of these investments held by the Group with changes to be recognized in profit or
loss:
In millions of Swiss francs
31 December 2021 31 December 2020
Adjusted net asset value (1% increase)
7.5
6.7
Although the Group believes that its estimates of fair values are appropriate, the use of different methodologies and different
unobservable inputs, especially in the underlying investments of investment programs, could lead to different measurements of
fair value of its financial investments, and assets and liabilities held for sale. Due to the broad range of unobservable input factors
used in the valuation of the investment programs’ direct investments, particularly concerning the EBITDA multiple, a sensitivity
analysis on these underlying unobservable input factors does not result in meaningful outcomes.
Partners Group | 77
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
6. Investments in associates
The Group accounted for investments in associates as of 31 December 2021 as summarized below:
In millions of Swiss francs
Principal
activity
Fair
value
Carrying
value
Ownership
Pearl Holding Limited, Guernsey ("Pearl")
LGT Private Equity Advisers, Liechtenstein ("LGT")
Total investments in associates
Private equity
investments
Asset
management
17.8
0.5
17.8
0.5
18.3
28%
40%
In millions of Swiss francs
Note
2021
2020
Balance as of 1 January
Redemption of shares (Pearl)
Share of results (Pearl)
Share of results (LGT)
Exchange differences
Balance as of 31 December
5.1.
5.2.
25.0
(8.5)
2.7
0.0
(0.9)
18.3
42.1
(17.5)
0.7
0.0
(0.3)
25.0
Summary of financial information of the investments in associates - 100%:
In millions of Swiss francs
31 December 2021 31 December 2020 31 December 2021 31 December 2020
Pearl
LGT
Total assets
Total liabilities
Equity
Revenues and other operating income
Profit/(loss) for the period
63.4
0.1
63.3
11.2
9.4
89.0
2.2
86.8
7.3
2.7
1.4
0.2
1.2
1.4
0.0
1.5
0.3
1.2
1.4
0.0
The financial information is based on unaudited financial information as of the balance sheet date as received from LGT and Pearl.
Pearl Holding Limited
Pearl’s investments are managed on a discretionary basis by Pearl Management Limited, Guernsey, which is advised by Partners
Group AG, Switzerland (“PGAG”), in accordance with an investment advisory agreement. PGAG’s duties are to provide asset
allocation advice, commercial due diligence reviews, investment and disinvestment proposals and performance monitoring. For
the described services, the Group is entitled to receive administration, management and performance fees.
Share of results of associates
The share of results of associates resulting from Pearl is disclosed in profit or loss as net finance income and expense (see note
5.1.), while the share of results of associates resulting from LGT is disclosed as other operating income (see note 5.2.). The Group
assesses LGT’s results as comparable to management services and therefore discloses the results as operating income. Pearl’s
results are mainly driven by distributions and changes in fair value of the underlying investments, comparable to changes in fair
value of financial investments (see note 5.3.2.), which are presented as net finance income and expense in the consolidated
income statement (see note 5.1.).
78 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
7. Trade and other payables
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Trade payables
Goods and services received not yet invoiced
Derivative liabilities held for risk management
Accrued revenue deductions
Cash collateral for forward contracts
Lease liabilities
Other payables
Total trade and other payables
8. Lease liabilities
In millions of Swiss francs
Lease liabilities as of 1 January
Additions
Removals
Accreted interest
Lease payments
Exchange differences
Lease liabilities as of 31 December
Current liabilities
Non-current liabilities
Lease liabilities as of 31 December
8.
99.2
39.4
1.0
98.6
7.7
10.9
49.8
306.6
53.1
28.2
1.6
104.3
1.8
10.3
29.4
228.7
2021
2020
66.9
4.2
(0.4)
1.0
(11.7)
0.8
60.8
10.9
49.9
60.8
67.6
15.9
(1.1)
1.4
(12.1)
(4.8)
66.9
10.3
56.6
66.9
Partners Group | 79
ANNUAL REPORT 2021 ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
9. Income tax
9.1. Income tax expense
9.1.1. Recognized in profit or loss
In millions of Swiss francs
Current tax expense:
Current year
Under/(over) provided in prior years
Total current tax expense
Deferred tax expense/(income):
Note
2021
2020
285.1
0.0
285.1
(22.5)
(22.5)
136.4
(1.8)
134.6
(10.8)
(10.8)
Deferred tax expense/(income), net
relating to the origination and reversal of temporary differences
9.2.
Total deferred tax expense/(income)
Total income tax expense
262.6
123.8
9.1.2. Weighted average expected tax rate reconciliation
In millions of Swiss francs
Profit before tax
2021
2020
1'726.2
928.6
Weighted average expected Group tax rate1)
14.53%
13.91%
Expected tax expense
Non-tax-deductible expense and non-taxable income
Applicable tax rates differing from expected rate
Non-refundable withholding taxes
Under/(over) provided in prior years
Other impacts
Total income tax expense
250.8
(11.4)
(5.0)
27.8
0.0
0.4
262.6
129.2
(8.9)
(1.5)
(1.8)
6.8
123.8
1) The Group calculated a weighted average tax rate, taking into account statutory tax rates of the Company and its subsidiaries in their specific jurisdictions, and their contribution to total profit
before tax.
80 | Partners Group
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
ANNUAL REPORT 2021
9.2. Deferred tax assets and liabilities
Development of deferred tax assets and liabilities
Deferred tax assets and liabilities are recognized in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following table shows the
development of deferred tax assets and deferred tax liabilities.
In millions of Swiss francs
31 December 2021 31 December 2020
Deferred tax assets
Deferred tax liabilities
Deferred tax assets/(liabilities), net
104.4
(3.4)
101.0
64.0
(3.4)
60.6
In millions of Swiss francs
2021
2020
Balance as of 1 January, net
Changes recognized in profit or loss
Changes recognized in equity
Changes recognized in other comprehensive income
Exchange differences
Balance of deferred tax assets/(liabilities) as of 31 December, net
Analysis of deferred tax assets and liabilities
The following table shows the development of deferred tax assets and liabilities by category:
In millions of Swiss francs
60.6
22.5
18.3
(1.7)
1.3
101.0
39.8
10.8
14.7
(0.0)
(4.7)
60.6
2021
Financial
investments
Other
non-current
assets
Defined
benefit plan
Share-based
payment
transactions
Accrued
variable
compensation
& MCP
Others
Total
Balance as of 1 January, net
Changes recognized in profit or loss
Changes recognized in equity
Changes recognized in other comprehensive
income
1.6
(1.0)
(4.5)
(0.3)
Exchange differences
Balance as of 31 December, net
0.1
0.7
(0.1)
(4.9)
0.4
0.1
(1.7)
(1.2)
37.6
4.3
18.3
0.9
61.1
24.0
19.4
1.5
(0.0)
(0.0)
0.4
43.8
60.6
22.5
18.3
(1.7)
1.3
1.5
101.0
Partners Group | 81
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
2020
Financial
investments
Other
non-current
assets
Defined
benefit plan
Share-based
payment
transactions
Accrued
variable
compensation
& MCP
Others
Total
Balance as of 1 January, net
Changes recognized in profit or loss
Changes recognized in equity
Changes recognized in other comprehensive
income
Exchange differences
Balance as of 31 December, net
Financial investments
(0.1)
1.8
(3.1)
(1.8)
(0.1)
1.6
0.4
(4.5)
0.3
0.1
(0.0)
0.4
23.1
3.2
14.7
(3.4)
37.6
18.0
7.6
1.6
(0.1)
(1.6)
24.0
0.0
1.5
39.8
10.8
14.7
(0.0)
(4.7)
60.6
Taxable temporary differences arise between the tax bases of financial investments and their carrying amounts in the
consolidated financial statements (fair values with regard to the application of IFRS 9). As of 31 December 2021, the Group
has such temporary differences of CHF 71.4 million for which no deferred tax liabilities have been recognized (31 December
2020: CHF 334.2 million). The liability was not recognized as the Group controls the dividend policy of the subsidiary, i.e. the
Group controls the timing of reversal of the related taxable temporary differences and considers it probable that the temporary
difference will not reverse in the foreseeable future. A reversal of these temporary differences would result in estimated income
tax expenses of CHF 3.8 million (31 December 2020: 16.9 million).
Other non-current assets
Taxable temporary differences arise between the tax bases of property and equipment as well as intangible assets and their
carrying amounts in the consolidated financial statements.
Defined benefit plan
The Group recognizes deferred tax assets or liabilities as result of applying IAS 19 (for further information see note 4.5.2.).
Share-based payment transactions
Taxable temporary differences arise (in accordance with IAS 12.68A) from the recognition of share-based payment expenses
(see notes 4.2. and 4.3.) in the applicable accounting period in accordance with IFRS 2, while the tax deductions in relation to
these expenses materialize in a different period; e.g. only when the options and shares are exercised or vested. Typically, the
measurement of the tax deduction is based on the share price at the date of exercise, or vesting or the Management Fee EBIT for
the financial year of vesting.
Accrued variable compensation & MCP
Taxable temporary differences arise between the tax bases of remuneration-related accruals and provisions and their carrying
amounts in the consolidated financial statements.
Others
Others mainly include impacts from leases. With the adoption of IFRS 16, it is required that a lessee recognizes a right-of-use
asset and a lease liability. In many jurisdictions, lease payments are tax deductible on a cash basis. As a result, the tax basis of the
right-of-use asset and lease liability are zero. The result is a taxable temporary difference in relation to the right-of-use asset and
a deductible temporary difference in relation to the lease liability, which typically can be netted on entity level.
82 | Partners Group
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
ANNUAL REPORT 2021
10. Other operating expenses
In millions of Swiss francs
Third party services
Property-related costs
Administrative expenses
Travel and representation expenses
Pandemic-related costs and impact contributions
Total other operating expenses
11. Property, equipment and right-of-use assets
2021
2020
(23.3)
(4.9)
(35.3)
(8.5)
(6.0)
(78.0)
(18.1)
(4.8)
(28.1)
(7.5)
(10.0)
(68.5)
2021
Total
In millions of Swiss francs
Cost
Balance as of 1 January
Additions
Disposals
Exchange differences
Balance as of 31 December
Accumulated depreciation
Balance as of 1 January
Depreciation
Accumulated depreciation on disposals
Exchange differences
Balance as of 31 December
-
Land
Buildings
Right-of-use
assets
Construc-
tion in
progress
Office
furniture
Interior
fittings
Equipment
and
IT fittings
63.1
0.4
(0.6)
0.2
63.1
87.3
2.6
2.5
92.4
4.0
1.9
0.1
6.0
89.0
4.4
(2.5)
0.7
91.6
25.4
12.4
(2.3)
0.0
35.5
5.5
28.8
0.0
34.3
-
11.5
0.7
(0.5)
0.1
11.8
5.4
1.9
(0.5)
0.0
6.8
28.7
1.2
(0.8)
0.1
29.2
18.2
2.5
(0.8)
(0.0)
12.8
297.9
1.0
(0.4)
0.1
39.1
(4.8)
3.7
13.5
335.9
8.7
2.9
(0.4)
0.1
61.7
21.6
(4.0)
0.2
19.9
11.3
79.5
Carrying amount
As of 1 January
As of 31 December
63.1
63.1
83.3
86.4
63.6
56.1
5.5
34.3
6.1
5.0
10.5
9.3
4.1
2.2
236.2
256.4
Impairment losses incurred in 2021
nil
Partners Group | 83
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Land
Buildings
Right-of-use
assets
Construc-
tion in
progress
Office
furniture
Interior
fittings
Equipment
and
IT fittings
2020
Total
Cost
Balance as of 1 January
63.7
Additions
Transfers
Disposals
Exchange differences
Balance as of 31 December
(0.6)
63.1
Accumulated depreciation
Balance as of 1 January
Depreciation
Accumulated depreciation on disposals
Exchange differences
Balance as of 31 December
-
65.0
3.0
26.2
(6.9)
87.3
2.3
1.9
(0.2)
4.0
77.7
16.3
29.4
11.6
(34.6)
(5.0)
89.0
(0.9)
5.5
12.7
13.6
(0.9)
25.4
-
10.0
22.2
16.8
284.8
0.5
2.8
(1.1)
(0.7)
11.5
5.1
1.7
(1.1)
(0.3)
5.4
2.3
5.6
(0.6)
(0.8)
28.7
17.1
1.9
(0.6)
(0.2)
18.2
1.5
35.2
-
(6.4)
(15.7)
297.9
47.6
22.4
(6.4)
(1.9)
61.7
(4.7)
(0.8)
12.8
10.4
3.3
(4.7)
(0.3)
8.7
Carrying amount
As of 1 January
As of 31 December
63.7
63.1
62.7
83.3
65.0
29.4
63.6
5.5
4.9
6.1
5.1
10.5
6.4
4.1
237.2
236.2
Impairment losses incurred in 2020
nil
84 | Partners Group
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
12. Intangible assets
In millions of Swiss francs
Cost
Balance as of 1 January
Additions
Disposals
Exchange differences
Balance as of 31 December
Accumulated amortization and impairment losses
Balance as of 1 January
Amortization
Accumulated amortization on disposals
Exchange differences
Balance as of 31 December
Carrying amount
As of 1 January
As of 31 December
Impairment losses incurred in 2021
Goodwill
Acquired
client contracts
Software
Contract
costs
Other
intangible
assets
2021
Total
30.8
4.5
21.7
2.4
(2.0)
0.0
22.1
13.5
5.5
(2.0)
0.0
17.0
55.5
19.5
(0.2)
74.8
33.5
11.8
(0.1)
45.2
9.1
121.6
21.9
(2.0)
(0.2)
9.1
141.3
7.8
0.8
59.3
18.1
(2.0)
-
8.6
75.4
0.1
4.6
4.5
0.1
4.6
(0.1)
30.7
-
30.8
30.7
-
-
8.2
5.1
22.0
29.6
1.3
0.5
62.3
65.9
nil
Partners Group | 85
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Cost
Balance as of 1 January
Additions
Disposals
Exchange differences
Balance as of 31 December
Accumulated amortization and impairment losses
Balance as of 1 January
Amortization
Accumulated amortization on disposals
Exchange differences
Balance as of 31 December
Carrying amount
As of 1 January
As of 31 December
Impairment losses incurred in 2020
Impairment testing for CGU’s containing goodwill
Goodwill
Acquired
client contracts
Software
Contract
costs
32.4
4.8
23.4
6.4
(8.1)
21.7
16.9
4.7
(8.1)
13.5
52.9
5.6
(0.8)
(2.2)
55.5
25.2
10.4
(0.8)
(1.3)
33.5
(0.3)
4.5
4.8
(0.3)
4.5
-
-
6.5
8.2
27.7
22.0
(1.6)
30.8
-
32.4
30.8
Other
intangible
assets
2020
Total
9.1
122.6
12.0
(8.9)
(4.1)
9.1
121.6
6.9
0.9
7.8
2.2
1.3
53.8
16.0
(8.9)
(1.6)
59.3
68.8
62.3
nil
The carrying amount of goodwill as of 31 December 2021 of CHF 30.7 million (2020: CHF 30.8 million) has been allocated to the
following cash generating units (“CGU”), which represent the lowest level within the Group at which the goodwill is monitored for
internal management purposes.
• Goodwill of CHF 16.2 million (2020: CHF 15.7 million) relating to the acquisition of Partners Group Real Estate LLC (“PG RE”)
in 2007, which was merged into Partners Group (USA) Inc. as of 1 January 2012, has been allocated to the private real estate
segment.
• Goodwill of CHF 14.5 million (2020: CHF 15.1 million) relating to the acquisition of Partners Group (Italy) SGR S.p.A. in 2013
(“PG Italy”), which was merged into Partners Group (UK) Limited in 2016 and into Partners Group (Luxembourg) S.A. in 2019,
has been allocated to the private equity segment.
86 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
The recoverable amounts of the private real estate and the private equity segments were based on their value in use. The value in
use was determined by discounting the future cash flows from the continuing use of the CGUs and was based on the following key
assumptions:
• Cash flows were projected based on the actual operating results and a four-year estimate (2022–2025). Cash flows for the
time thereafter were taken into account by calculating a terminal value based on the discount factor applied by the Group. No
growth rate was applied for the terminal value.
• Revenues were projected based on the development of the existing business, taking into account the generation of additional
business in the years 2022 to 2025.
• Growth of other operating expenses was applied at a constant rate of 10% p.a. (2020: 10% p.a.).
• Growth of personnel expenses was applied at a constant rate of 5% p.a. (2020: 5% p.a.) plus additional personnel expenses for
additional business revenues (i.e. 35% of additional revenues are expensed as additional personnel and general expenses (2020:
35%)).
• After-tax discount rates of 8.5% (PG RE; 2020: 6.8%) and 7.9% (PG Italy; 2020: 6.4%), respectively, were applied in determining
the recoverable amounts of the CGU’s. The Group applied risk-free interest rates of 1.5% (PG RE; 2020: 0.9%) and 0.9% (PG
Italy; 2020: 0.6%), adjusted by market risk premiums and industry weighted average beta factors.
• The impairment test resulted in a value in use higher than the carrying amount.
Management believes that any reasonably possible change in any of the key assumptions would not cause the carrying value of
goodwill of the CGUs to exceed the recoverable amounts.
13. Long-term debt
In millions of Swiss francs
Balance as of 1 January
Accreted interest
Balance as of 31 December
2021
2020
798.9
0.2
799.1
798.6
0.3
798.9
The Group issued the following corporate bonds denominated in Swiss francs and listed on the SIX Swiss Exchange:
ISIN
CH0361532895
CH0419041287
Date of
issue
Face value in
millions of CHF
Coupon
in %
Year of
maturity
Issue price
in %
Redemption
price in %
7 June 2017
21 June 2019
300.0
500.0
0.150%
0.400%
2024
2027
100.052%
100.000%
100.098%
100.000%
The fair values of the corporate bonds as of 31 December 2021 were CHF 302.3 million and CHF 508.3 million, respectively
(2020: CHF 302.3 million and CHF 512.0 million, respectively), and were determined by the quoted market price (level 1 input).
Partners Group | 87
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
14. Share capital, capital management and reserves
In effective number of shares
2021
2020
Issued as of 1 January
Issued during the period
26'700'000
26'700'000
Issued as of 31 December - fully paid in
26'700'000
26'700'000
The issued share capital of the Company comprises 26’700’000 registered shares (2020: 26’700’000) at CHF 0.01 nominal value
each. The shareholders are entitled to receive dividends, as declared from time to time, and are entitled to one vote per share at
shareholder meetings of the Company.
Legal reserves
Legal reserves comprise the reserves which are to be maintained due to the legal requirements as indicated in the Swiss Code of
Obligations. The Group’s legal reserves amount to CHF 218’100 as of 31 December 2021 (31 December 2020: CHF 218’100),
consisting of CHF 217’100 (31 December 2020: CHF 217’100) for legal reserves from capital contributions and of CHF 1’000
(31 December 2020: CHF 1’000) for other legal reserves.
Treasury shares
Treasury shares are recognized at cost and presented separately within equity. At the balance sheet date, the Group held
330’966 (2020: 347’655) of the Company’s issued shares. The Group holds treasury shares to provide for existing share and
option programs.
Cumulative Translation Adjustments
Cumulative Translation Adjustments comprise all foreign exchange differences arising from the translation of the financial
statements of foreign operations included in the consolidated financial statements.
Dividends
The Company pays an annual dividend following the approval of the appropriation of available earnings by the owners of the
Company at the annual general meeting, typically held in May. The Company paid a dividend of CHF 27.50 per share on
19 May 2021 (19 May 2020: CHF 25.50). As the Company’s treasury shares are not eligible for a dividend payment, the dividend
distribution of CHF 734.3 million approved in May 2021 (May 2020: CHF 680.9 million) was not fully distributed, i.e. a total of
CHF 724.6 million was paid out (May 2020: 668.5 million). After the balance sheet date, the BoD proposes a dividend distribution
of CHF 881.1 million (CHF 33.00 per share) for 2021.
Capital management
The BoD’s objective is to maintain a strong capital base in order to maintain investor, creditor and market confidence and to
sustain the future development of the business. The BoD also monitors the level of dividend distributions to shareholders.
The Group may purchase its own shares on the market within the limits defined by the BoD. The timing of these purchases
depends on the market price and restrictions imposed by applicable laws. Primarily, these purchases are used in conjunction with
the Group’s share and option programs. Furthermore, the Company has authorized conditional capital of CHF 40’050. The BoD
is authorized to increase the share capital by up to 15% at its discretion as a result of exercised options and granting of shares.
There were no changes in the Group’s approach to capital management during the year. The Company and some of its
subsidiaries are subject to minimum capital requirements prescribed by external parties (e.g. banks or regulators) and are
regulated by relevant authorities in the corresponding countries. The capital requirements may depend on fixed costs,
expenditures, key financial ratios, net assets and assets under management. All these capital requirements have been met during
2021 and 2020.
88 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Outstanding shares
The computation of the weighted average number of ordinary shares outstanding during the period is based on the following
figures:
In effective number of shares
Balance as of 1 January
Purchase of treasury shares
Disposal of treasury shares
Balance as of 31 December
Weighted average number of shares outstanding
during the period (360 days)
Shareholders above 5% (in % of shares issued)
Dr. Marcel Erni
Alfred Gantner
Urs Wietlisbach
BlackRock Inc.
In effective number of shares
Balance as of 1 January
Purchase of treasury shares
Disposal of treasury shares
Balance as of 31 December
Weighted average number of shares outstanding
during the period (360 days)
Shareholders above 5% (in % of shares issued)
Dr. Marcel Erni
Alfred Gantner
Urs Wietlisbach
Shares
issued
Treasury
shares
2021
Shares
outstanding
26'700'000
347'655
26'352'345
265‘847
(265‘847)
(282‘536)
282‘536
26'700'000
330'966
26'369'034
Shares held
1'338'959
1'338'959
1'338'959
1'339'857
Shares
issued
Treasury
shares
26'048'756
in %
5.01%
5.01%
5.01%
5.02%
2020
Shares
outstanding
26'700'000
278'645
26'421'355
290'828
(290'828)
(221'818)
221'818
26'700'000
347'655
26'352'345
26'274'704
in %
5.01%
5.01%
5.01%
Shares held
1'338'959
1'338'959
1'338'959
Partners Group | 89
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
15. Earnings per share
In Swiss francs
Average fair value of one ordinary share during the period
Weighted average exercise price for shares under option
during the period
2021
2020
1'369.19
849.52
818.99
748.50
Note
Earnings
per share
Profit for
the period
2021
Number of
shares
Profit for the period (in millions of Swiss francs)
1'463.6
Weighted average number of ordinary shares outstanding
14.
26'048'756
Basic earnings per share (in Swiss francs)
56.19
Weighted average number of shares under option during the
period
Number of shares that would have been issued at fair value1)
Diluted earnings per share (in Swiss francs)
55.12
1) Calculated on the basis of each individual share option grant.
Note
Earnings
per share
Profit for
the period
1'253'630
(749'863)
26'552'523
2020
Number of
shares
Profit for the period (in millions of Swiss francs)
804.8
Weighted average number of ordinary shares outstanding
14.
26'274'704
Basic earnings per share (in Swiss francs)
Weighted average number of shares under option during the
period
Number of shares that would have been issued at fair value1)
Diluted earnings per share (in Swiss francs)
1) Calculated on the basis of each individual share option grant.
30.63
30.36
1'384'243
(1'153'713)
26'505'234
As of 31 December 2021, the Group had 1’167’386 options and non-vested shares outstanding (2020: 1’484’115) (see note 4.3.).
The treasury shares necessary to cover the granted non-vested shares have already been placed in separate escrow accounts in
the name of the employees. Thus, the number of treasury shares (see note 14.) is already net of non-vested shares outstanding.
90 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
16. Related party transactions
The Group has related party relationships with its investments in associates (see note 6.), pension funds (see note 4.5.2.) as well
as with its management and significant shareholders and their related parties.
In 2021, associates purchased services from the Group in the amount of CHF 1.1 million (2020: CHF 2.9 million).
As of 31 December 2021, loans to employees of the Group amounted to CHF 11.1 million (2020: CHF 8.2 million) and were
included in other financial assets. The loans to related parties of the Group bear interest at market-related interest rates.
The Group purchased treasury shares at arm’s length from its shareholders employed by the Group as follows:
In effective number of shares
2021
2020
Purchase of treasury shares from shareholders employed by the Group
35'075
16'380
Average purchase price per share (in Swiss francs)
1'528.32
873.34
The Group is managed by the Board of Directors (“BoD”) and the Executive Team of the Company. The total personnel expenses
for the BoD as well as the Executive Team of the Company are included in personnel expenses (see note 4.1.) and for non-
executive board members in third-party services (see note 10.) and amount to:
In millions of Swiss francs
2021
2020
Board of Directors:
Short-term employment benefits
Other compensation
Share-based payment expenses
Other long-term benefits (MCP)
Post-employment benefits
Total Board of Directors
Executive Team:
Short-term employment benefits
Other compensation
Share-based payment expenses
Other long-term benefits (MCP)
Post-employment benefits
Total Executive Team
Total Board of Directors and Executive Team
2.0
0.1
5.1
6.2
0.2
13.6
7.9
0.2
13.1
14.5
1.1
36.8
50.4
1.9
0.2
4.3
2.5
0.2
9.1
7.4
0.5
14.2
3.5
0.8
26.4
35.5
Partners Group | 91
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
At the relevant balance sheet date, the BoD and the Executive Team were holding the following number of options, non-vested
shares and shares:
Options and non-vested shares:
In effective number of options and non-vested shares
31 December 2021 31 December 2020
Board members (vested options)
Members of the Executive Team (options and non-vested shares)
Total
Share ownership (unrestricted):
In effective number of shares
Board members
Members of the Executive Team
Total
16'296
92'697
108'993
29'469
129'780
159'249
31 December 2021 31 December 2020
4'368'366
4'368'934
44'248
125'041
4'412'614
4'493'975
For further information in accordance with Art. 663c of the Swiss Code of Obligations, refer to note 15. of the entity accounts of
Partners Group Holding AG.
The Group aligns the interests of clients with those of the Group’s employees by offering all employees preferential terms to
invest alongside the Group’s investment programs via a global employee commitment plan. In line with standard industry practice,
investments in closed-ended programs charge no management fees and no performance fees and investments in evergreen
programs come at a reduced management fee and performance fee. In total, commitments by the Group’s BoD and employees
amounted to approximately CHF 2.1 billion as of 31 December 2021 (31 December 2020: CHF 2.0 billion), of which CHF 1.6
billion (2020: CHF 1.6 billion) are committed to closed-ended programs and CHF 0.5 billion (2020: CHF 0.4 billion) to evergreen
programs.
17. Subsidiaries
17.1. Changes in scope of consolidation
Incorporation of new Group entities
Name
Incorporation date
Principal activity
Partners Group Investment Services AG
27 July 2021
Provide administrative services for group entities
Partners Group Investment Management S.à.r.l., Luxembourg
12 May 2021
Serve as manager to investment programs
Partners Group Orbit S.à.r.l., Luxembourg
28 October 2020
Serve as manager to investment programs
Planeta Industries S.A Compartment PGGLF Investment
Holdings, Luxembourg
6 April 2020
Support the financing activities for the Group
92 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
17.2. Involvement with structured entities
Structured entities are entities that have been designed so that voting or similar rights are not the dominant factor in deciding
who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed
by means of contractual arrangements. Such entities often have restricted activities and narrow and well-defined objectives.
Consolidated structured entities
The Group provides seed financing to certain early stage investment programs that the Group manages. The decision to provide
seed financing to an investment program is made by responsible bodies as defined in the Group’s Rules of the Organization and
of Operations. For further details see note 5.3.3.
Unconsolidated structured entities
The fair value of financial investments, as presented in note 5.3.2., represents the Group’s participation in unconsolidated
investment programs.
17.3. Subsidiaries
Details of the Group’s operating subsidiaries as of the reporting date are set out below:
Place of incorporation and operation
Registered office
Country of
incorporation
Share Capital in
thousands
Interest %
Interest %
Name of the subsidiary
31 December 2021
31 December 2021 31 December 2020
Partners Group AG
Baar-Zug
Switzerland
Partners Group Advisors (DIFC) Limited
Partners Group Japan Kabushiki Kaisha
Partners Group Private Markets (Australia)
Pty Ltd
DIFC
Tokyo
UAE
Japan
CHF 200
USD 300
JPY 10'000
Sydney
Australia
AUD 200
Partners Group Prime Services Solutions
(Philippines), Inc.
Taguig City,
Metro Manila
Philippines
PHP 13'734
Partners Group (Brazil) Investimentos Ltda.
São Paulo
Partners Group (Canada) Inc.
Nova Scotia
Brazil
Canada
Partners Group (EU) GmbH
Munich
Germany
BRL 795
CAD 0
EUR 32
Partners Group (Guernsey) Limited
St Peter Port
Guernsey
GBP 31'500
Partners Group (India) Private Limited
Mumbai
India
INR 29'615
Partners Group (Luxembourg) S.A.
Luxembourg
Luxembourg
EUR 1'350
Partners Group (Shanghai) Co., Ltd.
Shanghai
China
CNY 12'363
Partners Group (Singapore) Pte. Limited
Singapore
Singapore
SGD 1'250
Partners Group (UK) Limited
Partners Group (USA) Inc.
London
New York
UK
USA
GBP 569
USD 75
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group | 93
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
At the end of the reporting period, the Group had other subsidiaries that typically perform management services and/or typically
hold financial investments (see note 5.3.2.). The principal activities and their place of operation are summarized as follows:
Principal activity
31 December 2021
31 December 2020
Place of incorpora-
tion and operation
Number of subsidiaries
Financing/treasury
Holding of land and property
General partner to investment programs
General partner to investment programs
General partner to investment programs
General partner to investment programs
Manager to investment vehicles
Holding of land and property
Investment services
Manager to investment vehicles
Manager to investment programs
Financing/treasury
Client access management
Financing/treasury
Management services to investment programs
18. Subsequent events
Adjusting events
Switzerland
Switzerland
Guernsey
Scotland
Germany
Cayman Islands
USA
USA
USA
UK
Luxembourg
Luxembourg
Guernsey
Guernsey
Guernsey
2
1
18
3
1
4
4
1
1
1
8
1
1
6
2
1
1
18
3
1
4
4
1
1
1
7
1
1
6
2
No events took place between 31 December 2021 and 18 March 2022 that would require material adjustments to the amounts
recognized in these consolidated financial statements.
Non-adjusting events
The Russian invasion of Ukraine on 24 February 2022 led to uncertainties in the markets that resulted in higher volatilities, as well
as sanctions implemented by Switzerland, the United States, the European Union, the United Kingdom and others against Russia
and certain Russian entities and nationals.
The Group’s direct exposure to Russia and Ukraine consists of financial investments of CHF 2.3 million across 30 investment
programs. In addition, the Group has indirect exposures through bridge loans to investment programs with a certain Russia
exposure that amount to CHF 68.3 million. These bridge loans are backed by unfunded client commitments that can be drawn
upon to settle outstanding amounts and are jointly backed by the respective clients of the investment program. The underlying
assets in the investment programs serve as additional layer of security.
The events could have an impact and affect the Group’s performance and results in 2022 and beyond. Based on its assessment,
the Group does, however, not expect significant impacts from these events at this stage but will continue to monitor the
developments and any potential changes to this conclusion.
94 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19. Summary of significant accounting policies
19.1. Basis of preparation
The consolidated financial statements are presented in Swiss francs, rounded to the nearest one hundred thousand. The figures
referred to in text passages are actual figures either rounded to the nearest Swiss franc or presented in millions of Swiss francs
unless otherwise stated. The statements are prepared on a historical cost basis, except for certain assets and liabilities which are
stated at fair value, such as derivative financial instruments, assets and liabilities held for sale and financial instruments at fair
value through profit or loss.
The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, as well as income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making judgments concerning carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised if the revision affects only that period, or, in the period of the revisions and future
periods if the revision affects both current and future periods.
Judgments made by management in the application of IFRS that have a significant effect on the consolidated financial statements
and estimates with a significant risk of material adjustment in the next year are described in note 2.
Some line items in the consolidated balance sheet have been disaggregated (e.g. derivative assets held for risk management
on the consolidated balance sheet) and some note disclosures have been improved (e.g. notes 5.3.1. and 5.4.) to make the
information and disclosure more relevant. Comparative amounts have been re-presented accordingly.
19.2. Changes in accounting policies
The accounting policies adopted for the year ended 31 December 2021 are consistent with those of the previous financial year,
except where new or revised standards were adopted, as indicated below.
19.2.1. Standards, amendments and interpretations effective for the first time
The accounting policies applied for the period ending 31 December 2021 are consistent with those of the previous financial
year. A number of new standards became effective on 1 January 2021, but they do not have a significant effect on the Group’s
consolidated financial statements.
Amendments and interpretations
The following amendments and interpretations have been applied for the first time but have no significant impact on the Group’s
financial statements:
• COVID-19-Related Rent Concessions (Amendments to IFRS 16)
• Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)
Partners Group | 95
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.2.2. Standards, amendments and interpretations to existing standards that are not yet effective and might be relevant
to the Group, but have not been early adopted
The following new and revised standards, amendments and interpretations have been issued by the date the consolidated
financial statements were authorized for issue but are not yet effective and are not adopted early in these consolidated financial
statements. Their impacts on the consolidated financial statements of the Group have not yet been systematically analyzed. The
expected impacts as disclosed in the table below reflect a first assessment by the Group’s management.
Standard / Interpretation
New standards or interpretations
IFRS 17 Insurance Contracts
Revisions and amendments of standards and interpretations
COVID-19-Related Rent Concessions beyond 30 June 2021
(Amendments to IFRS 16)
Onerous Contracts - Cost of Fulfilling a Contract
(Amendments to IAS 37)
Annual Improvements to IFRS Standards 2018-2020
Property, Plant and Equipment: Proceeds
before Intended Use (Amendments to IAS 16)
Reference to the Conceptual Framework
(Amendments to IFRS 3)
Classification of liabilities as current or non-current
(Amendments to IAS 1)
Amendments to IFRS 17
Disclosure of Accounting Policy (Amendments to IAS 1 and IFRS
Practice Statement 2)
Definition of Accounting Estimate (Amendments to IAS 8)
Deferred Tax Related to Assets and Liabilities Arising from a
Single Transaction - Amendments to IAS 12 Income Taxes
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
Effective date
Planned adoption
by the Group
1 January 2023
Reporting year 2023
1 April 2021
Reporting year 2022
1 January 2022
Reporting year 2022
1 January 2022
Reporting year 2022
1 January 2022
Reporting year 2022
1 January 2022
Reporting year 2022
1 January 2023
Reporting year 2023
1 January 2023
Reporting year 2023
1 January 2023
Reporting year 2023
1 January 2023
Reporting year 2023
1 January 2023
Reporting year 2023
Available for optional adoption /
effective date deferred indefinitely
*
*
*
*
*
*
*
*
*
*
*
*
* Standards and interpretation in the above table have no or an insignificant impact on the Group‘s financial position or performance.
96 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.3. Basis of consolidation
(a) Subsidiaries
The consolidated financial statements incorporate the financial statements of the Company and entities (including structured
entities) controlled by the Company (its “subsidiaries”). The Company controls an investee (entity) if and only if the Company has
all of the following:
• power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);
• exposure, or rights, to variable returns from its involvement with the investee; and
• ability to use its power over the investee to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above.
When the Company holds less than a majority of the voting rights of an investee, it has power over the investee when the
voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company
considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are
sufficient to give it power, including:
• the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
• potential voting rights held by the Company, other vote holders or other parties;
• rights arising from other contractual arrangements; and
• any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the
relevant activities at the time when decisions need to be made, including voting patterns at previous shareholders meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses
control over the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included
in the consolidated statement of comprehensive income from the date the Company gains control until the date when the
Company ceases to control the subsidiary.
Whenever necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line
with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full upon consolidation.
When the Group loses control over a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference
between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii)
the previous carrying amount of the assets (including goodwill) and liabilities of the subsidiary. When assets of the subsidiary
are carried at revalued amounts or fair values and the related cumulative gains or losses have been recognized in other
comprehensive income and accumulated in equity, the amounts previously recognized in other comprehensive income and
accumulated in equity are accounted for as if the Group had directly disposed of the relevant assets (i.e. reclassified to profit or
loss or transferred directly to retained earnings as specified by applicable IFRSs). The fair value of any investment retained in the
former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting as
financial investment under IFRS 9 “Financial Instruments” or, when applicable, the cost on initial recognition of an investment in
an associate or a joint venture.
(b) Associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the
financial and operating policy decisions of the investee but is not control or joint control over those policies.
The Group accounts for its interest in associates using the equity method.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured
receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the
associate.
Partners Group | 97
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in
the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset
transferred.
Based on the Group’s assessment of each individual associate, the share of results of associates is disclosed as operating income
if comparable to revenues from management services. If the share of results is mainly driven by distributions and changes in
fair value of the underlying investments, comparable to changes in fair value of financial investments, the share of results is
presented as finance income and expense in the consolidated income statement.
19.4. Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating
segments’ gross segment results are reviewed regularly by the Group’s BoD to assess their performance and to make decisions
about resources to be allocated to the segments for which discrete financial information is available.
19.5. Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (the functional currency). The consolidated financial statements are
presented in Swiss francs.
(b) Foreign currency transactions
Transactions in foreign currencies are translated at the foreign currency exchange rates at the date of the transaction. Monetary
assets and liabilities denominated in foreign currencies are translated at each balance sheet date to the functional currency at
the foreign currency exchange rate of that date. Foreign exchange differences arising on translation of such foreign denominated
monetary asset and liabilities are recognized in profit or loss. Non-monetary assets and liabilities that are measured in terms of
historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets
and liabilities denominated in foreign currencies that are stated at fair value are translated to the functional currency at the
applicable foreign currency exchange rate of the date the fair value is determined.
(c) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from consolidation, are
translated to Swiss francs at foreign currency exchange rates applicable at the balance sheet date. The revenues and expenses as
well as cash flows of foreign operations are translated to Swiss francs at the average rate of the period.
Resulting foreign currency translation differences are recognized in other comprehensive income and presented in cumulative
translation adjustments in equity. When the disposal or partial disposal of a foreign operation results in losing control or
significant influence over an entity (i.e. the foreign operation) the cumulative amount in cumulative translation adjustments
(related to the specific foreign operation) is reclassified to profit or loss as part of the gain or loss on disposal.
98 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(d) Applied foreign currency exchange rates
The Group applied the following currency exchange rates against the Swiss franc:
Year
2021
Year
2020
Currency
Balance sheet rate
Average rate
EUR
USD
GBP
SGD
1.0362
0.9111
1.2342
0.6758
1.0812
0.9142
1.2574
0.6803
Currency
Balance sheet rate
Average rate
EUR
USD
GBP
SGD
1.0812
0.8838
1.2076
0.6686
1.0702
0.9388
1.2042
0.6805
19.6. Financial instruments
(a) Recognition
Trade receivables are initially recognized when they are originated and debt securities when they are purchased. All other
financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of
the instrument.
(b) Financial assets
Classification
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value through profit or loss; and
• those to be measured at amortized cost.
For assets measured at fair value, gains and losses will be recorded in profit or loss. None of the Group’s financial assets are
classified as financial asset at fair value through other comprehensive income. Debt instruments will be measured at amortized cost
if the objective of the business model is to hold and to collect contractual cash flows and contractual cash flows represent solely
payments of principal and interest.
Partners Group | 99
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of
financial assets carried at fair value through profit or loss are expensed as incurred.
Subsequent measurements of debt instruments depend on the Group’s business model for managing the asset and the cash flow
characteristics of the asset. There are two measurement categories into which the Group classifies its debt instruments:
• Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments
of principal and interest are measured at amortized cost. A gain or loss on a debt instrument that is subsequently measured
at amortized cost and is not part of a hedging relationship is recognized in profit or loss when the asset is derecognized or
impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
• Fair value through profit or loss: Assets that do not meet the criteria for amortized cost are measured at fair value through
profit or loss. Changes in fair value are recognized in finance income and expense as net gains on fair value through profit or
loss instruments. A gain or loss on a debt instrument that is subsequently measured at fair value through profit or loss and is
not part of a hedging relationship is recognized on a net basis in profit or loss in the period in which it arises.
(c) Financial liabilities
Financial liabilities are classified as measured at amortized cost or fair value through profit or loss.
• A financial liability is classified as at fair value through profit or loss if it is a derivative or it is designated as such on initial
recognition. Financial liabilities at fair value through profit or loss are measured at fair value and net gains and losses, including
any interest expense, are recognized in profit or loss.
• Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit
or loss.
19.7. Revenue recognition
Revenue comprises the fair value for the rendering of services, net of value-added tax and rebates and after eliminating sales
within the Group. No revenue is recognized if there are significant uncertainties regarding the recovery of the consideration due.
The Group is active in different businesses (see note 3.). Within the different businesses, the Group earns income for its various
activities, which are further explained and outlined below:
(a) Management fees and other revenues
The Group earns investment management fees for discretionary investment programs, typically based on long-term contracts.
The fees are often based on the investment exposure of investors in the investment structures and are often payable on a
quarterly basis in advance. The performance obligation of the Group in respect of these fees is to manage the investment
structures on an ongoing basis. Ongoing investment management fees including all non-performance related fees are recognized
over time, based on the specific contracts.
In the process of structuring new products, the Group typically receives an initial fee for its services in connection with
establishing investment programs and related legal and structuring work. These organizational fees are always one-off fees,
which are typically received when a new investor commits into the structure. The structuring of the relevant investment
programs represents a separate performance obligation of the Group, and therefore revenue is recognized at the point in time
when the investor commits. In relation to certain private market transactions, the Group receives transaction fee income. These
transaction fees are typically one-time occurring. The performance obligation of the Group is satisfied by the execution of the
private market transaction, and therefore revenue is recognized at the point in time when the execution of the transaction is
completed. The Group also charges fees to select underlying lead and joint lead investments for value-added services provided to
them during the holding period of the relevant investment. These fees are charged on an ongoing basis.
100 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
(b) Performance fees
Typically, performance fees are recognized so that they do not exceed the portion of performance fees from realized underlying
investments and so that there is a sufficiently large cushion for any potential negative development on the remaining portfolio,
therefore resulting in a very low probability that these fees are subject to a reversal in a potential claw-back situation.
Accordingly, the recognition of performance fees of investment programs with a claw-back is assessed based on a three-step
approach once a pre-defined return hurdle has been exceeded: (1) the total proceeds from realized underlying investments
are determined and the corresponding costs of such realized as well as of fully written-off investments are deducted (“Net
Proceeds”), (2) the NAV of unrealized underlying investments is determined. The respective NAV will be written down (in a so-
called “Write-Down Test”) to the extent that the probability of a future claw-back risk becomes minimal. Then, the corresponding
costs of such unrealized investments are deducted, resulting in a “Write-Down NAV”. This Write-Down NAV is added to the Net
Proceeds. In the final third step (3), performance fees are calculated for (1) and (2) by multiplying (1) and (2) by the applicable
performance fee rate subject to exceedance of the hurdle rate. Where the hurdle rate is not exceeded, there is no performance
fees. The lower of such calculated performance fees is recognized.
On a quarterly basis, the Write-Down Test is applied to all private markets investment programs with a claw-back. The
discount applied in the Write-Down Test may vary from investment program to investment program and considers specific risk
characteristics, including macroeconomic, (geo-) political and investment program-specific risk factors. The discount applied in
the Write-Down Test is regularly assessed by the Group and reviewed by the Board of Directors. As of 31 December 2021, the
applied discount was 50% (31 December 2020: 50%), except for selected programs where the discount is determined on the
basis of a systematic approach and may be up to 100%.
The Group updates its performance fee recognition on a quarterly basis to faithfully represent the circumstances present at
that point in time. When the probability of no reversal of previously recognized performance fees is no longer considered highly
probable, the Group recognizes the necessary reversals.
(c) Revenue deductions
Revenue deductions mainly include fee rebates to third parties. Such rebates may be one-off or recurring, depending on
individual agreements. Fees charged multiple times in multi-layer structures (e.g. through pooling vehicles) are typically waived
and rebated.
19.8. Other operating income
Other operating income comprises income resulting from the ordinary course of business but that is not revenue from
management services, net. Other operating income includes operating income on short-term loans, true-up compensation on
management and organizational fees.
19.9. Leases
(a) Definition of a lease
The Group assesses whether a contract is either a lease or contains a lease based on the IFRS lease definition. A contract is either
a lease or contains a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange
for a consideration.
(b) As a lessee
The Group recognizes a right-of-use asset and its corresponding lease liability at the lease commencement date. The right-of-use
asset is measured at cost and depreciated over its useful life which typically is the lease period defined within the lease contract.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted
for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of outstanding lease
payments at the commencement date, discounted by using an incremental borrowing rate. The lease liability is subsequently
increased by the interest cost on the lease liability and is decreased by lease payments made. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, a change in the estimate of the amount expected to
be payable under a residual value guarantee, or, as appropriate, changes in the assessment of whether a purchase or extension
option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Partners Group | 101
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
Any remeasurement is generally adjusted against the right-of-use asset.
The Group, as a lessee, identified leases mainly relating to rental contracts for its offices (including parking).
(c) As a lessor
The sub-lease contracts are classified as operating leases under IFRS 16.
19.10. Third-party services
Third-party services comprise BoD compensation (non-executive) as well as legal, consulting and other fee expenses to third
parties.
19.11. Finance income and expense
Net finance income and expense comprises bank interest income and expense, dividend income, gains and losses on revaluations
of financial instruments and foreign exchange gains and losses.
Dividend income is recognized in profit or loss on the date the entity’s right to receive payments is established, which in the case
of quoted securities is typically the ex-dividend date.
19.12. Income tax expense
Income tax expense for the period comprises current and deferred tax expense. Income tax expense is recognized in profit or loss
except to the extent that it relates to items recognized directly in equity.
Current income tax relates to the expected taxes payable on the taxable income for the period, using tax rates enacted or
substantially enacted at the balance sheet date, and any adjustments to taxes payable in respect of previous periods.
Deferred income tax is recognized, using the balance sheet liability method, on temporary differences between the tax basis
of assets and liabilities and their carrying amounts included in the consolidated financial statements. The following temporary
differences are not considered in accounting for deferred taxes: the initial recognition of goodwill, the initial recognition of assets
or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent
that their reversal is not probable in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted as of the balance sheet date and are expected to apply when the related deferred
income tax asset is realized or the deferred income tax liability is settled.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against
which the temporary differences can be utilized.
19.13. Cash and cash equivalents
Cash and cash equivalents include cash on hand and call deposits held with banks and are measured at amortized cost. Bank
overdrafts are shown in current liabilities of the consolidated balance sheet.
19.14. Trade and other receivables
Trade and other receivables are measured at amortized cost, less impairment losses.
102 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.15. Assets and liabilities held for sale
The Group may seed invest capital into investment programs that the Group typically manages with the objective of providing
initial scale and facilitating marketing of the investment programs to third-party investors. For these assets and liabilities held for
sale, the Group is actively seeking to reduce its share in seed financed investment programs by recycling capital back into cash or
by diluting.
Those investment programs deemed to be controlled under IFRS 10 are classified as held for sale and are presented in the
separate balance sheet line items assets held for sale and liabilities held for sale. Such assets and liabilities held for sale are
measured at the lower of their carrying amount and fair value less costs to sell.
Investments that are subsequently disposed of or diluted, such that the Group is no longer deemed to have control under IFRS
10, will subsequently be re-classified to investments at fair value through profit or loss and presented as financial investments in
the consolidated balance sheet.
19.16. Property and equipment
Property and equipment is stated at cost less accumulated depreciation and impairment losses. Costs include expenses that are
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the Group and the costs of the item can be
measured reliably. All other repairs and maintenance costs are charged to profit or loss in the financial period in which they are
incurred.
Depreciation of property and equipment is calculated using the straight-line method to allocate the cost of each asset, minus its
residual value, over its estimated useful life, as follows:
• Buildings
• Interior fittings
30–50 years
5–10 years
• Office furniture
5 years
• Equipment and IT fittings
3–5 years
Major renovations are depreciated over the remaining estimated useful life of the related asset or to the date of the next major
renovation, whichever is sooner. Land is not depreciated.
The carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount (see note 19.19.).
Gains and losses on disposal of property and equipment are determined by comparing proceeds with the carrying amount and
are included in profit or loss.
Partners Group | 103
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.17. Intangible assets
(a) Goodwill
Goodwill arises upon the acquisition of subsidiaries and is included in intangible assets.
The Group measures goodwill at the acquisition date as the total of:
• the fair value of the total consideration transferred; plus
• the recognized amount of any non-controlling interest in the acquiree; plus - if the business combination is achieved in stages -
the fair value of the existing equity interest in the acquiree; less
• the net recognized amount (typically fair value) of the identifiable assets acquired and liabilities (including contingent liabilities)
assumed.
When the excess is negative, a gain on a bargain purchase is recognized immediately in net finance income and expense in the
consolidated income statement.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash generating units and is not
amortized but tested at least annually for impairment.
(b) Acquired client contracts
Client contracts, which the Group acquired and which are recognized as intangible assets, have definite useful lives. Such
intangible assets are carried at cost less accumulated amortization and impairment losses.
(c) Software
Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software.
Software recognized as an asset is carried at cost less accumulated amortization and impairment losses.
(d) Contract costs
The Group may make payments in order to secure investment management revenue contracts. These amounts paid are
considered a cost to obtain a contract and are amortized using the straight-line method which is consistent with the transfer to
the customer of the services to which the asset relates. This is typically between four to five years.
(e) Other intangible assets
Other intangible assets, which the Group acquires and recognizes as assets, usually have a definite useful life. Such intangible
assets are carried at cost less accumulated amortization and impairment losses.
(f) Subsequent expenditure
Subsequent expenditure on capitalized intangible assets is capitalized only when it increases future economic benefits embodied
in the intangible asset to which it relates. All other subsequent expenditure is expensed in profit or loss as incurred.
(g) Amortization
Amortization is recognized in profit or loss on a straight-line basis over the estimated useful life of intangible assets unless
such life is indefinite. Goodwill with indefinite useful life is tested at least annually for impairment as of the balance sheet date.
Intangible assets with a determinable useful life are amortized from the date that they are available for use and are tested for
impairment if indicated. The estimated useful life of intangible assets is as follows:
• Goodwill
indefinite
• Acquired client contracts
3–5 years
• Software
• Contract costs
3–5 years
4–5 years
• Other intangible assets
3–10 years
The carrying amount of these intangible assets is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount (see note 19.19.).
104 | Partners Group
ANNUAL REPORT 2021
Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.18. Investments
(a) Financial investments
Financial investments (see note 5.3.2.) are measured at fair value through profit or loss. The fair values of quoted financial
investments are based on current bid prices. If the market for a financial asset (including unlisted securities) is not active, the
Group establishes fair values by using various valuation techniques. These include the use of recent arm’s length transactions,
reference to other instruments that are substantially the same and discounted cash flow analysis refined to reflect the issuer’s
specific circumstances. For further explanations in connection with the determination of fair value please refer to note 5.5.
(b) Loans
Loans are non-derivative financial assets with fixed or determinable payments, which are not quoted in an active market and
in respect of which there is no intention of trading. They are classified as “held to collect” and their contractual payments give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding. The Group
measures such loans at amortized cost. They are included in current assets (short-term loans, see note 5.4.1.), except for amounts
with maturities greater than 12 months after the balance sheet date, which are classified as non-current assets (other financial
assets, see note 5.3.4.).
19.19. Impairment of assets
(a) Financial assets
The Group assesses the recoverability of its financial assets that are measured at amortized cost on a regular basis. It calculates,
on a forward-looking basis, the expected credit losses associated with its debt instruments carried at amortized cost. For trade
receivables, the Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance. For loans, the Group applies the general approach and uses the 12-month credit loss as basis for its calculations
of the expected credit loss. Note 5.4.1. details the Group’s credit risk assessment of the financial assets.
(b) Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount
is estimated. For goodwill that has an indefinite useful life or other intangible assets that are not yet available for use, the
recoverable amount is estimated annually.
The recoverable amount of an asset or cash-generating unit (“CGU”) is the greater of its value in use and its fair value less
costs to sell. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the
purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of
assets (CGU). For the purpose of goodwill impairment testing, CGUs to which goodwill has been allocated are aggregated so that
the level at which impairment is tested reflects the lowest level at which goodwill is monitored for internal reporting purposes.
Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from the synergies of
the combination.
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount.
Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are allocated first to reduce
the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the
unit (group of units) on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
In respect of other assets, impairment losses recognized in prior periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used
to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had
been recognized.
Partners Group | 105
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
19.20. Trade and other payables
Trade and other payables are obligations to pay for goods and services that have been rendered in the ordinary course of
business from suppliers. Trade payables are classified as current liabilities if payment is due within one year or less. If not, they are
presented as non-current liabilities.
Trade and other payables are recognized initially at fair value and subsequently measured at amortized cost.
19.21. Provisions
Provisions are recognized when: (i) the Group has a present legal or constructive obligation as a result of past events; (ii) it is more
likely than not that an outflow of resources will be required to settle the obligation; and (iii) the amount can be reliably estimated.
If the effect is significant, provisions are determined by discounting the expected future cash flows at the pre-tax rate that
reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
19.22. Employee benefits
(a) Defined benefit plan
Group companies operate various pension schemes. The schemes are funded through payments to insurance companies or
trustee-administered funds, determined by periodic actuarial calculations. The Group has both defined benefit and defined
contribution plans.
A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all benefits
to employees relating to employee services in the current and prior periods. For defined contribution plans, the Group pays
contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The
Group has no further payment obligations once the contributions have been paid. The contributions are recognized as personnel
expenses in the consolidated income statement when due.
A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans specify an amount
of pension benefit that an employee will receive upon retirement, typically dependent on one or more factors such as age, years
of service and compensation. The benefits paid to employees in Switzerland qualify as a defined benefit plan.
The Group’s net obligation/asset in respect of defined benefit plans is calculated by estimating the amount of future benefits that
employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. When the
actuarial calculation results in a benefit to the Group, the recognized asset is limited to the present value of economic benefits
available in the form of any future refunds from the plan or reductions in future contributions to the plan. An economic benefit is
available to the Group if it is realizable during the life of the plan, or on settlement of the plan liabilities.
Remeasurements of the net defined benefit obligation/asset, which comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect on the asset ceiling (if any excluding interest) are recognized immediately in the consolidated
statement of comprehensive income.
The Group determines the net interest expense/income on the net defined benefit obligation/asset for the period by applying
the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined
benefit obligation/asset, taking into account any changes in the net defined benefit obligation/asset during the period as a result
of contributions and benefit payments. Net interest expense/income and other expenses related to defined benefit plans are
recognized in profit or loss.
The Group opted for the risk-sharing approach.
(b) Share-based payment transactions
The fair value at grant date of share-based payment awards granted to employees is recognized as personnel expenses in the
consolidated income statement with a corresponding increase in equity, over the period until the employees unconditionally
106 | Partners Group
ANNUAL REPORT 2021 Notes to the consolidated financial statements
for the years ended 31 December 2021 and 2020
become entitled to the awards. The amount recognized as personnel expense is adjusted to reflect the number of awards for
which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognized
as personnel expense is based on the number of awards that do meet the related service and non-market performance conditions
at the vesting date. For share-based payment awards without vesting conditions, the fair value at grant date of the share-based
payment is measured and immediately expensed in profit or loss to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
(c) Performance-related compensation
The NCC and the BoD allocate each year up to 40% of recognized performance fees via the Performance Fee Compensation
Pool to a group of eligible employees.
A portion of the Performance Fee Compensation Pool is allocated via the MCP Allocation to the broader management team
on the basis of discretionarily awarded grants. The recognition of the performance fee related compensation expenses usually
occurs when the performance fees are sufficiently visible and recognized. The corresponding liability is recognized as employee
benefit liabilities in the consolidated balance sheet (see note 4.5.). The part of the liability that is not expected to be settled
wholly before twelve months after the end of the annual reporting period is considered in non-current liabilities.
The difference between the Performance Fee Compensation Pool and the MCP Allocation is allocated to a “Performance Fee
Bonus Pool” which is distributed among the broader management teams based on their contribution to performance. The part
of the Performance Fee Bonus Pool that is not expected to be settled wholly before twelve months after the end of the annual
reporting period is recorded in non-current liabilities.
19.23. Long-term debt
Long-term debt is initially measured at fair value less any directly attributable transaction costs. Subsequent to initial recognition
these liabilities are measured at amortized cost using the effective interest method, with interest expense recognized in the
consolidated income statement on the effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest
expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments
through the expected life of the financial liability to the net carrying amount on initial recognition.
19.24. Share capital
(a) Ordinary shares
Ordinary shares are classified as equity since the shares are non-redeemable and any dividends are discretionary.
(b) Issuance of new shares
Incremental costs directly attributable to the issuance of new shares or options are shown in equity as a deduction from the
proceeds, net of tax.
(c) Repurchase of share capital and options
Where any Group company purchases the Company’s issued shares, the consideration paid, including any directly attributable
incremental costs, is deducted from equity attributable to the Company’s equity holders until the shares are cancelled, re-issued
or disposed of. Where such shares are subsequently sold or re-issued, any consideration received, net of any directly attributable
incremental transaction costs, is included in equity attributable to the Company’s equity holders.
(d) Distribution of dividends
The distribution of dividends to the Company’s shareholders is recognized as a liability in the consolidated financial statements
when the dividends are approved by the Company’s shareholders.
Partners Group | 107
ANNUAL REPORT 2021 ANNUAL REPORT 2020
Notes to the consolidated financial statements for the years ended 31 December 2014 and 2013
Index to the financial statements of Partners Group
Holding AG and report of the auditors
1. Report of the auditors on the financial statements of Partners Group Holding AG
2. Financial statements of Partners Group Holding AG:
– Income statement for the years ended 31 December 2021 and 2020
– Balance sheet as of 31 December 2021 and 2020
– Notes to the financial statements for the years ended 31 December 2021 and 2020
109
112
113
114
3. Proposal by the Board of Directors of Partners Group Holding AG for the appropriation of available earnings as of
31 December 2021
123
108 | Partners Group
Report of the auditors on the financial statements of
Partners Group Holding AG
Statutory Auditor's Report
To the General Meeting of Partners Group Holding AG, Baar
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Partners Group Holding AG, which comprise the balance sheet as at
31 December 2021, and the income statement for the year then ended, and notes to the financial statements,
including a summary of significant accounting policies.
In our opinion the financial statements (pages 112 to 123) for the year ended 31 December 2021 comply with
Swiss law and the company’s articles of incorporation.
Basis for Opinion
We conducted our audit in accordance with Swiss law and Swiss Auditing Standards. Our responsibilities under
those provisions and standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the entity in accordance with the provisions of Swiss law
and the requirements of the Swiss audit profession and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. We have determined that there are no key audit matters to
communicate in our report.
Responsibility of the Board of Directors for the Financial Statements
The Board of Directors is responsible for the preparation of the financial statements in accordance with the
provisions of Swiss law and the company’s articles of incorporation, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the entity’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the entity or to cease
operations, or has no realistic alternative but to do so.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 109
ANNUAL REPORT 2021
Report of the auditors on the financial statements of
Partners Group Holding AG
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with Swiss law and Swiss Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with Swiss law and Swiss Auditing Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
‒
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
‒ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
internal control.
‒ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made.
‒ Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the entity to cease to continue as a going concern.
We communicate with the Board of Directors or its relevant committee regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide the Board of Directors or its relevant committee with a statement that we have complied with
relevant ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
From the matters communicated with the Board of Directors or its relevant committee, we determine those
matters that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report, unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
110 | Partners Group
ANNUAL REPORT 2021
Report of the auditors on the financial statements of
Partners Group Holding AG
Report on Other Legal and Regulatory Requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an
internal control system exists, which has been designed for the preparation of financial statements according to
the instructions of the Board of Directors.
We further confirm that the proposed appropriation of available earnings complies with Swiss law and the
company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.
KPMG AG
Thomas Dorst
Licensed Audit Expert
Auditor in Charge
Zurich, 18 March 2022
Malea Bourquin
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, PO Box , CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 111
ANNUAL REPORT 2021
Income statement of Partners Group Holding AG
for the years ended 31 December 2021 and 2020
In millions of Swiss francs
Note
2021
2020
Dividend income
Other finance income
Other service income
Total income
Third party services
General and administrative expenses
Travel and representation expenses
Other service expenses
Finance expense
Profit before tax
Direct taxes
Profit for the period
2.
3.
4.
1'769.9
39.4
0.4
1'809.7
(5.8)
(29.6)
(0.1)
(157.2)
1'617.0
683.0
85.8
0.3
769.1
(2.5)
(1.6)
(0.1)
(2.5)
(139.0)
623.4
1'617.0
623.4
112 | Partners Group
ANNUAL REPORT 2021
Balance sheet of Partners Group Holding AG
as of 31 December 2021 and 2020
In millions of Swiss francs
Note
31 December 2021 31 December 2020
Assets
Cash and cash equivalents
Other current receivables
Accrued income
Total current assets
Financial assets
Participations
Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current interest-bearing liabilities to subsidiaries
Other current liabilities
Total current liabilities
Non-current interest-bearing liabilities
Other non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Equity
Share capital
Legal capital reserves
Legal reserves from capital contributions
Legal retained earnings
Legal reserves
Voluntary retained earnings
Results carried forward
Profit for the period
Treasury shares
Total equity
Total liabilities and equity
5.
2.
6.
7.
8.
9.
10.
11.
494.4
1'378.9
1'120.0
2'993.3
61.1
2'325.6
2'386.7
5'380.0
881.6
518.5
615.0
2'015.1
64.1
1'927.5
1'991.6
4'006.7
2'143.3
1'553.8
8.3
4.5
2'151.6
1'558.3
800.0
800.0
0.4
3.8
804.2
2'955.8
0.3
0.2
0.0
1'184.9
1'617.0
(378.2)
2'424.2
5'380.0
0.5
4.0
804.5
2'362.8
0.3
0.2
0.0
1'286.2
623.4
(266.2)
1'643.9
4'006.7
Partners Group | 113
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
1. Accounting principles
The financial statements have been established in accordance with the accounting, presentation and valuation principles of the
Swiss Code of Obligations.
Partners Group Holding AG (“the Company”) is domiciled in Switzerland. The address of the Company’s registered office is
Zugerstrasse 57, 6341 Baar-Zug, Switzerland.
Receivables and liabilities
Receivables from and liabilities to subsidiaries are denominated in the local currency of the respective subsidiary and are
recognized on a net basis for each counterparty.
Financial assets
Financial assets include long-term loans. Loans granted in foreign currencies are translated to Swiss francs at foreign currency
exchange rates applicable at the balance sheet date.
Participations
The Company applies the group valuation principle for the valuation of all its participations (see note 7.).
Treasury shares
Treasury shares are recognized at acquisition cost, deducted from equity at the time of acquisition and presented separately
within equity. In case of a disposal of treasury shares, the gain or loss is recognized in the income statement as other finance
income or finance expense. The treasury shares are valued at historic price.
2. Dividend income
The Company has elected to recognize CHF 1’120 million (2020: CHF 615 million) of dividend income related to the 2021
financial year profit of its subsidiary Partners Group AG in 2021 (the year in which it was earned). As this dividend will not be paid
until 2022, this amount has been recorded as accrued income.
3. Other finance income
In millions of Swiss francs
2021
2020
Interest income
Foreign exchange gains
Gain on treasury shares transactions
Total other finance income
6.6
17.6
15.2
39.4
5.7
69.6
10.5
85.8
114 | Partners Group
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
4. Finance expense
In millions of Swiss francs
2021
2020
Interest expense
Foreign exchange losses
Loss on treasury shares transactions
Other finance expense
Total finance expense
5. Other current receivables
(17.9)
(35.1)
(103.3)
(0.9)
(157.2)
(21.2)
(60.8)
(56.1)
(0.9)
(139.0)
In millions of Swiss francs
31 December 2021 31 December 2020
Third parties
Subsidiaries
Total other current receivables
6. Financial assets
0.2
1'378.7
1'378.9
0.2
518.3
518.5
In millions of Swiss francs
31 December 2021 31 December 2020
Loans to subsidiaries
Total financial assets
61.1
61.1
64.1
64.1
Partners Group | 115
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
7. Participations
Partners Group AG
Partners Group Corporate Finance AG in Liquidation
Partners Group Property AG
Partners Group Investment Services AG1)
Partners Group (EU) GmbH
Partners Group Management (Deutschland) GmbH
Partners Group (Luxembourg) S.A.
Partners Group Management I S.à r.l.
Partners Group Management II S.à r.l.
Partners Group Management III S.à r.l.
Partners Group Management IV S.à r.l.
Partners Group Management V S.à r.l.
Partners Group Management VI S.à r.l.
Partners Group Investment Managment S.à r.l.2)
Partners Group Orbit S.à r.l.
Partners Group (Brazil) Investimentos Ltda.
Partners Group (USA) Inc.
Partners Group Colorado Propco, LLC
Partners Group (Canada) Inc.
Partners Group (Singapore) Pte. Limited
Partners Group (Shanghai) Co., Limited
Partners Group (India) Private Limited
Partners Group Prime Services Solutions (Philippines), Inc.
Partners Group Japan Kabushiki Kaisha
Partners Group (UK) Limited
Partners Group (UK) Management Limited
Partners Group Advisors (DIFC) Limited
Partners Group Private Markets (Australia) Pty. Ltd.
Partners Group Cayman Management I Limited
Partners Group Cayman Management II Limited
Partners Group Cayman Management III Limited
Partners Group Cayman Management IV Limited
1) The company was incorporated on 27 July 2021
2) The company was incorporated on 12 May 2021
116 | Partners Group
Ownership and voting interest
Domicile
31 December 2021 31 December 2020
Switzerland
Switzerland
Switzerland
Switzerland
Germany
Germany
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Luxembourg
Brazil
USA
USA
Canada
Singapore
China
India
Philippines
Japan
UK
UK
UAE
Australia
Cayman Islands
Cayman Islands
Cayman Islands
Cayman Islands
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
Ownership and voting interest
Domicile
31 December 2021 31 December 2020
Pearl Management Limited
Princess Management Limited
Partners Group Management Limited
Partners Group Management II Limited
Partners Group Management III Limited
Partners Group Management IV Limited
Partners Group Management V Limited
Partners Group Management VI Limited
Partners Group Management VII Limited
Partners Group Management VIII Limited
Partners Group Management IX Limited
Partners Group Management X Limited
Partners Group Management XI Limited
Partners Group Management XII Limited
Partners Group Management XIII Limited
Partners Group Management XIV Limited
Partners Group Management XV Limited
Partners Group Client Access Management I Limited
Partners Group Access Finance Limited
Partners Group Client Access 10 MP Management Limited
Partners Group Finance ICC Limited
Partners Group Finance CHF IC Limited
Partners Group Finance USD IC Limited
Partners Group Finance EUR IC Limited
Partners Group Finance GBP IC Limited
Partners Group Finance SGD IC Limited
Partners Group Private Equity Performance Holding Limited
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
Guernsey
LGT Private Equity Advisers AG
Liechtenstein
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
40%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
40%
Partners Group | 117
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
8. Other current liabilities
In millions of Swiss francs
31 December 2021 31 December 2020
Accrued audit expenses
Other accrued expenses
Tax liabilities
Other liabilities
Total other current liabilities
0.2
7.1
0.2
0.8
8.3
0.3
3.4
0.2
0.6
4.5
9. Non-current interest-bearing liabilities
The Company issued the following corporate bonds denominated in Swiss francs and listed on the SIX Swiss Exchange:
ISIN
Date of
issue
Face value in
millions of CHF
Coupon
in %
Year of
maturity
Issue price
in %
Redemption
price in %
CH0361532895
CH0419041287
7 June 2017
21 June 2019
300.0
500.0
0.150%
0.400%
2024
2027
100.052%
100.000%
100.098%
100.000%
10. Provisions
In millions of Swiss francs
Provisions for compensation to board members
Option grants
Management carry program
Social security expenses on management carry program
Total provisions
31 December 2021 31 December 2020
2.7
1.0
0.1
3.8
3.0
0.9
0.1
4.0
118 | Partners Group
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
11. Treasury shares
Balance as of 1 January 2020
Purchase of treasury shares
Disposal of treasury shares
Balance as of 31 December 2020
Purchase of treasury shares
Disposal of treasury shares
Balance as of 31 December 2021
Number of
shares
Weighted
average price
Total
value
In Swiss francs
In millions of
Swiss francs
278'645
290'828
(221'818)
347'655
763.93
760.72
757.07
765.62
265'847
1'451.77
(282’536)
969.57
330'966
1'142.67
212.9
221.2
(167.9)
266.2
386.0
(274.0)
378.2
The Company has 1’167’386 (31 December 2020: 1’484’115) outstanding employee options and non-vested shares (see also
note 4.3. of the consolidated financial statements). The treasury shares necessary to cover the granted non-vested shares have
already been put aside in separate escrow accounts in the name of the employees. Thus, the number of treasury shares is already
net of non-vested shares outstanding.
12. Share and option grants to members of the Board of Directors and
the Executive Team
In Swiss francs
2021
2020
Number of
instruments
Weighted
average price
Total
value
Number of
instruments
Weighted
average price
Total
value
In Swiss francs
In millions of
Swiss francs
In Swiss francs
In millions of
Swiss francs
Board of Directors
Shares
Executive Team
Shares
488
1'627.00
0.8
698
922.00
0.6
6'256
1'627.00
10.2
10'905
922.00
10.1
Partners Group | 119
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
13. Commitments and contingent liabilities
In millions of Swiss francs
31 December 2021 31 December 2020
Guarantees for third parties
Guarantees for subsidiaries
55.5
865.0
54.3
865.0
The Company and certain subsidiaries maintain the following lines of credit as of 31 December 2021 (see note 5.4.3. of the
consolidated financial statements):
• CHF 460 million
(31 December 2020: CHF 460 million)
• CHF 375 million
(31 December 2020: CHF 375 million)
• CHF 30 million
(31 December 2020: CHF 30 million)
The amounts drawn by subsidiaries are guaranteed by the Company.
As of 31 December 2021 there are no amounts drawn (31 December 2020: CHF 0.0).
14. Shareholders above 5%
As of 31 December 2021, the Company had received notification of four significant shareholders whose voting rights exceed 5%.
31 December 2021 31 December 2020
5.01%
5.01%
5.01%
5.02%
5.01%
5.01%
5.01%
4.98%
Dr. Marcel Erni
Alfred Gantner
Urs Wietlisbach
BlackRock, Inc.
120 | Partners Group
ANNUAL REPORT 2021 Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
15. Share and option holdings by members of the Board of Directors and
the Executive Team
Number of shares and options
31 December 2021
Share
ownership
Non-vested
shares
Options
Board of Directors
Steffen Meister, Executive Chairman
Dr. Martin Strobel, Vice Chairman
Dr. Marcel Erni
Alfred Gantner
Joseph P. Landy
Grace del Rosario-Castaño
Urs Wietlisbach
Total Board of Directors
Executive Team
David Layton, Chief Executive Officer and Head Private Equity
Kirsta Anderson, Chief People Officer
Sarah Brewer, Co-Head Client Solutions
Roberto Cagnati, Chief Risk Officer and Head Portfolio Solutions
Juri Jenkner, Head Private Infrastructure
Andreas Knecht, Chief Operating Officer and General Counsel
Marlis Morin, Head Client Services
Hans Ploos, Chief Financial Officer
Total Executive Team
350'675
360
1'338'959
1'338'959
108
346
1'338'959
4'368'366
6'015
33
637
1'477
7'950
9'099
17'845
1'192
44'248
4'570
11'726
-
16'296
7'500
31'530
18'850
17'000
6'161
144
1'155
793
3'948
3'152
1'423
1'041
17'817
74'880
Total
4'412'614
17'817
91'176
Partners Group | 121
ANNUAL REPORT 2021
Notes to the financial statements of Partners Group Holding
AG for the years ended 31 December 2021 and 2020
Number of shares and options
31 December 2020
Share
ownership
Non-vested
shares
Options
Board of Directors
Steffen Meister, Executive Chairman
Dr. Eric Strutz, Vice Chairman
Dr. Marcel Erni
Alfred Gantner
Grace del Rosario-Castaño
Dr. Martin Strobel
Lisa Hook
Urs Wietlisbach
Total Board of Directors
Executive Team
André Frei, Co-Chief Executive Officer
David Layton, Co-Chief Executive Officer and Head Private Equity
Juri Jenkner, Head Private Infrastructure
Andreas Knecht, Chief Operating Officer and General Counsel
Marlis Morin, Head Client Services
Dr. Michael Studer, Chief Risk Officer and Co-Head Portfolio Solutions
Hans Ploos, Chief Financial Officer
Total Executive Team
350'675
238
1'338'959
1'338'959
238
770
136
1'338'959
4'368'934
52'359
5'325
9'954
8'313
17'490
30'600
1'000
12'673
12'226
4'570
-
29'469
4'647
5'691
3'733
3'062
1'363
3'353
772
17'000
22'500
17'000
33'659
17'000
125'041
22'621
107'159
Total
4'493'975
22'621
136'628
16. Full-time employees
The Company did not have any employees in the reporting year or in the previous year.
17. Subsequent events
The Russian invasion of Ukraine on 24 February 2022 led to uncertainties in the markets that resulted in higher volatilities, as
well as sanctions implemented by various countries against Russia and certain Russian entities and nationals. The Company does
not have any direct exposure to Russia and Ukraine. For indirect exposure please refer to note 18. of the consolidated financial
statements.
No events took place between 31 December 2021 and 18 March 2022 that would require material adjustments to the amounts
recognized in these statutory financial statements.
122 | Partners Group
ANNUAL REPORT 2021
Proposal by the Board of Directors of Partners Group
Holding AG for the appropriation of available earnings as of
31 December 2021
In millions of Swiss francs
Profit for the period
Results carried forward
Total voluntary retained earnings available for appropriation
Proposal by the Board of Directors to the Annual General Meeting of shareholders:
To be distributed to shareholders
To be carried forward
31 December 2021
1'617.0
1'184.9
2'801.9
(881.1)
1'920.8
Partners Group | 123
ANNUAL REPORT 2021 Compensation Report
Grace del Rosario-Castaño member of the Board of Directors and Chairwoman of the Nomination and Compensation Committee
Dear clients, business partners
and fellow shareholders,
We are pleased to present Partners Group’s Compensation
Report for 2021. In this report, the Nomination &
Compensation Committee (NCC) explains how the
compensation for the Executive Team and members of the
Board of Directors is aligned to the firm’s investment and
financial performance.
The NCC strives to continuously improve the communication
and clarity of the firm’s approach to compensation and, in
2021, we engaged with our key shareholders, representing
about 15% of the total share capital, and proxy advisors to
reflect on industry trends and gather outside perspectives.
These dialogues also allow the NCC to further refine the
firm’s approach to compensation and to ensure the interests
of clients, shareholders, employees, and other stakeholders
are aligned with the best-practice compensation approach.
While we believe we made material changes to Board
compensation last year, we continued to receive a comparably
low acceptance rate of our Compensation Report (2020
report: 64%, 2019 report: 64%, 2018 report: 69%). One of
the reasons mentioned by proxy advisors and shareholders
was that performance-based compensation only represented
a minority of the LTI awards. We have therefore decided to
increase the proportion of performance-based compensation
to 50% and introduce several other amendments to the
compensation of Executive Team members as outlined
on the next page. We believe that these amendments
further contribute to making our approach to compensation
compliant to shareholder and proxy advisor expectations.
2021 was a successful year
2021 was a successful year across all metrics for Partners
Group. We took advantage of the strong market momentum
to transact on our thematic pipeline. The firm invested a
record USD 32 billion into companies and assets that we
believe are well-positioned for future growth. At the same
time, our entrepreneurial governance model has also led to
significant value creation.
Client demand for Partners Group’s investment solutions
resulted in new commitments of USD 25 billion in 2021. The
firm’s innovative bespoke client solutions, which cater to client
needs for tailored private markets solutions, were again the
largest contributor. These efforts resulted in an overall assets
under management growth of 17% to USD 127 billion in 2021.
As our firm continues to grow, we remain committed to
delivering sustainable performance across economic cycles,
and therefore focus on three key pillars:
• Transformational investing: as an investment firm, we
seek to generate strong returns by capitalizing on thematic
growth trends and transforming attractive businesses into
market leaders.
• Bespoke client solutions: as a client-centric organization,
we provide tailored access to private markets and seek
to enhance returns through our portfolio management
capabilities.
• Stakeholder impact: as a responsible investor, we realize
potential in private markets and seek to create sustainable
returns with lasting, positive impact for all of our
stakeholders.
124 | Partners Group
ANNUAL REPORT 2021 Compensation Report
Executive Team’s compensation amendments in 2021
Framework
2020
2021
Rationale for the change
Base
compensation
Co-CEO: USD 750K
CEO: USD 900K1)
Executive Team: CHF
500k for each member,
no distinction
Executive Team: based
on function and level of
responsibility
CEO base compensation was increased due to the additional
responsibilities and time commitment required by a sole CEO function. The
sole CEO now oversees all of Partners Group’s activities as opposed to the
firm's Co-CEO structure which separated responsibilities.
Quantitative
Assessment
(50%
weighting)
Qualitative
Assessment
(50%
weighting)
LTI award pool
(1) Financial
performance,
(2) Investment
development
(1) 80% strategy
implementation,
(2) 20% leadership
achievements
No change
Quantitative LTI factors continue to be driven by a formulistic calculation
based on performance and actual numeric results.
(1) 80% strategy
implementation,
including leadership
achievements (2) 20%
ESG targets
ESG considerations are now separately defined underlining their
importance to the firm. The NCC expects the Executive Team to lead and
implement defined ESG targets and aspects throughout the firm.
Long-term
incentives
Management Performance Plan (MPP)
Performance condition 1:
Share price performance
Performance condition 1:
Management Fee EBIT
growth
Performance condition 2:
No change
Performance condition 2:
No change
Cap/floor: LTI pool
2020: old range of
0.5x – 2.0x of the
previous year’s LTI
pool.
Selling restriction after
payout in Partners
Group shares: 2 years
Cap/floor: LTI pool
2021: new range
of 0.0x – 2.0x (i.e.
floor removed) of the
previous year’s LTI
pool.
Selling restriction after
payout in Partners
Group shares: Removed
due to long-term nature
of program (up to 14
years)
MPP allocation: 33%
MPP allocation: 50%
Share-based Participation Plan (SPP)
Vesting:
5-year linear vesting
with a 2-year selling
restriction
Vesting:
Vesting in year 3 (34%),
year 4 (33%) and year
5 (33%). No selling
restrictions. Minimum
shareholding guidelines
implemented.
Management Fee EBIT growth replaces share price performance as it is
directly linked to the measurable operating performance of the firm and
by extension the Executive Team while the share price is influenced by
many factors outside of the Executive Team‘s control. It sets the right focus
and requires the Executive Team – amongst others – to maintain pricing
stability, focus on sustained assets under management growth without
compromising on investment returns, and preserve margin targets and cost
discipline across the entire organization.
The performance fee generation of the underlying investments continues
to be the second performance condition determining MPP payout. It
ultimately derives from active value generation and the realization of
investment opportunities in underlying client portfolios. This methodology
remains unchanged. Achieving performance condition 1 but not
performance condition 2 results in no payout.
The floor was removed in 2021 to eliminate any guaranteed level of LTI
compensation for the Executive Team. This ensures that a year of severe
under performance and failure to meet targets will result in an LTI pool of
zero.
The selling restriction was removed as the program is already long-term,
taking up to 14 years and a minimum of 6 years prior to any payout being
made.
The amount of LTI with a performance condition (MPP) was intentionally
increased to 50% providing a more balanced approach to incentives. Executive
members of the Board continue to receive 100% of their LTI in MPP.
The removal of the selling restriction is balanced by the implementation of
a stricter and longer term vesting condition, i.e. no vesting until year 3.
SPP allocation: 67%
SPP allocation: 50%
The amount of LTI without a performance condition (SPP) was intentionally
decreased to 50% providing a more balanced approach to incentives.
Minimum
shareholding
guidelines
No guidelines
CEO:
6x of cash base salary;
5 years to achieve
Executive Team:
3x of cash base salary;
5 years to achieve
Minimum shareholding guidelines were introduced to be in line with
market practice by further aligning the Executive Team with the interests
of our shareholders. The minimum shareholding requirements encompass
shares granted under the firm‘s LTI plans as well as shares an Executive
Team member privately purchases outside of these plans.
1) Implemented as of 1 July 2021 with sole CEO structure.
Partners Group | 125
ANNUAL REPORT 2021 Compensation Report
As a firm, we link pay to long-term performance by aligning
the compensation of executives to long-term value creation
for our clients and shareholders. We achieve this by
connecting long-term incentives (“LTI”) to Management
Fee EBIT growth and performance fee generation in client
portfolios. These LTI plans run for 14 years which ensures
that the Executive Team and executive Board members have
a long-term view on building shareholder value creation.
We put less emphasis on short-term targets and therefore do
not include a variable short-term incentive concept. As such,
we provide a total base compensation, determined by an
individual’s role and level of responsibility, which consists of a
cash base salary and a deferred cash component in the same
amount. The two base compensation components together
result in a reasonable total base compensation for Executive
Team members.
In 2021, 72% of the current Executive Team’s total
compensation is variable in the form of LTI and tied to long
vesting periods and even longer payout mechanisms. We link
the size of the annual LTI grants for the Executive Team to
quantitative and qualitative performance targets. Based on
the assessment of each, a compensation factor is determined,
which is then multiplied by the previous year’s nominal LTI
pool. The NCC has decided to cap the compensation factor
at a maximum of 2.0x the previous year’s LTI pool on the
upper end, preventing excessive upside for LTI participants.
In addition, the NCC has removed the floor (0.5x in 2020)
thereby eliminating any guaranteed level of value or downside
protection. The quantitative metric focuses on the firm’s
strategy to deliver sustained profitable growth as measured
by Management Fee EBIT growth and the generation of
performance fee-weighted investment volume (also known
as “carry potential”) in the respective year under review. The
qualitative metric focuses on strategy implementation and
ESG. Both metrics directly influence the LTI award pool and
subsequently align the Executive Team to the outcome of the
firm’s long- and short-term strategy.
Staying true to our principle that we need to be aligned with
our shareholders, LTI grants are share-based incentive plans.
Our Executive Team and CEO are awarded shares through
their LTI grants. To further emphasize the importance of this
principle and given the recent additions to the Executive
Team, the NCC has implemented minimum shareholding
guidelines and strengthened the vesting period for the
Executive Team.
Concretely, in 2021 the Executive Team was able to
translate the firm’s overall investment and fundraising
achievements into strong operational results (quantitative
126 | Partners Group
achievements). Management Fee EBIT increased by over
20% and performance fee-weighted investment volume
increased by over 100% year-on-year. With regards to
qualitative achievements, the Executive Team continued
to work on its Group- as well as Executive Team-level
objectives that represent 80% of the total weight of the
qualitative assessment and are strategic in nature. These
objectives are centered around the firm’s investment, client,
service, and corporate areas. ESG targets, representing
20% of the total weight of the qualitative assessment,
remain one of the core principals of our charter. 2021 ESG
targets remained unchanged to the prior year and include
the promotion of ESG governance throughout the firm with
measurable diversity and inclusion goals. In 2022, we will
go a step further and bring our ESG targets in line with our
sustainability strategy, which will outline a detailed ESG
strategy to be rolled out across our portfolio and within the
firm with clearly defined targets, which will be released at
the end of April. Given its importance, the NCC believes
it is essential that ESG holds its own assessment value in
order to achieve sustainable growth over the coming years.
Based on the performance of the Executive Team in 2021
the overall LTI grants increased by a factor of 1.50x and
was subsequently adjusted for new joiners and leavers. The
nominal LTI pool granted for the year 2020 serves as a basis
to calculate the 2021 LTI pool. Similar to last year, LTI will be
granted in two distinct plans for Executive Team members,
the Management Performance Plan (“MPP”) and the Share
Participation Plan (“SPP”). Different to last year, we increased
the proportion of the MPP which is entirely performance
based, from 33% to 50% for the Executive Team in order
to make the allocation compliant to shareholder and proxy
advisor expectations. Executive Board members continue to
receive 100% of their LTI awards in MPP.
• MPP represents 50% of the LTI grant value and aims to
drive sustainable and continued profitable growth. This
is achieved by setting a minimum Management Fee EBIT1
growth rate measured over a five-year period, as well
as attractive investment performance amongst client
portfolios, through investment performance fee generation
between year 6 and year 14. We believe that achieving
Management Fee EBIT growth is the result of making
the right decisions on an operating level. For example, it
requires the Executive Team to maintain pricing stability
and a focus on sustained assets under management growth
as well as to preserve margin targets and cost discipline
across the entire organization. Once the minimum growth
1 Management Fee EBIT equals total EBIT (IFRS) less recognized performance fee revenues
adding back performance fee related expenses. For a detailed definition please refer to the
‘Key definitions and alternative performance metrics’ section of the Annual Report 2021.
ANNUAL REPORT 2021 Compensation Report
rate on Management Fee EBIT is achieved, MPP payouts
commence in line with the underlying performance fees
generated. This link ensures that client performance
targets are achieved and that Executive Team members
maintain a long-term focus as performance fee generations
can take up to 14 years to be fully realized.
Fee EBIT growth as well as the generation of performance
fee-weighted investment volume in our assessment of
the quantitative performance factors. Together, these
components will protect our foundation and guide us
forward ultimately benefitting our shareholders and all other
stakeholders.
• The remaining 50% of the LTI grant is in the form of shares
(SPP) which aims to create shareholder value through a
rising share price. This component – in combination with
our newly introduced minimum shareholding guidelines
– drives ownership behavior amongst Executive Team
members.
With regards to the compensation of executive members
of the Board of Directors, the total base compensation
granted in 2021 was equal to the amount granted in 2020.
Their overall LTI pool increased in line with the LTI pool of
the Executive Team by a factor 1.50x. Due to the already
significant shareholding in the firm by executive members of
the Board of Directors, they were only granted MPP (entirely
performance-based LTI). Independent Board members were
compensated in line with the firm’s compensation framework
for independent Board members, which is outlined in this
report. They received half of their Board fee in restricted
shares and the other half in cash.
Outlook
Building on the firm’s strong foundation, in 2021, the
Executive Team together with the Board laid out a strategic
roadmap to continue driving forward multi-year sustainable
growth. This strategic roadmap is comprised of key initiatives
across the firm’s six strategic focus areas and is centered
around the following themes: investments, clients, and
people. On the investment side, we will further deepen our
transformational investment know-how and focus on scaling
our non-control investments. On the client side, we will
advance our thought-leadership by growing our bespoke
solutions, particularly in the US, the largest private market.
On the people side, we will put emphasis on developing the
next generation of leadership and employing efficiency and
effectiveness programs to scale-up our service organization.
These pillars are defined by specific and measurable targets
which, taken together, will lead us to achieve sustainable
growth over the coming years.
In 2022, we will be evaluating the Executive Team against
both strategy implementation, specifically of these new
key initiatives (80%), and our new ESG targets (20%) which
are engrained in how we sustainably develop assets over
the long-term. We will continue to evaluate Management
On behalf of Partners Group and the NCC, I would like to
thank you for your continued trust and support.
Yours sincerely,
Grace del Rosario-Castaño
Chairwoman of the Nomination & Compensation Committee
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ANNUAL REPORT 2021 Compensation Report
1. Pay for performance &
compensation governance
Our compensation philosophy is based upon our firm’s
values. We are committed to driving forward our strategy
of delivering sustainable returns through a focus on
transformational investing, bespoke client solutions, and
positive stakeholder impact. At the same time, we strive for
attractive financial returns and a premium valuation to honor
the long-term trust of our shareholders. In this context, our
charter defines our overriding compensation philosophy for
the most important asset of our firm, our employees.
1.1. Principles
When making compensation decisions, the NCC follows three
guiding principles which apply to all employees:
• Compensation follows contribution: we have a unique
business model and operate as one global firm, albeit
with differentiated business lines and functions. The main
drivers for the variable compensation elements in the firm’s
compensation framework are related to individual and
team results, as well as to the firm’s overall achievements.
• Equal opportunity and non-discrimination: we are an
equal opportunity employer and do not discriminate
against employees on the basis of age, gender, race,
nationality, or any other basis that is inconsistent with
our guiding values. The firm commits to a “pay for
performance” and “fair pay” policy and systematically
conducts equal pay analyses across our main departments
and regions assured by a third party.
• Compensation is no substitute for talent development:
compensation is an important pillar of governance and
leadership. It is, however, no substitute for a caring
culture, for non-material ways of recognizing individual
achievements, and for helping the development of the
firm’s human capital.
128 | Partners Group
1.2. Pay for performance
We fundamentally believe that our compensation system
should reflect our emphasis on long-term value creation for
clients and shareholders. We therefore do not apply the
concept of variable short-term incentives for the Executive
Team. The NCC follows the general corporate governance
principle of “comply or explain” when Partners Group’s
compensation philosophy and principles deviate from what
are considered best practices, as is the case with short-
term incentives. As our firm continues to grow, we remain
committed to delivering sustainable performance delivered
across economic cycles while focusing on what truly sets us
apart in our industry:
• Transformational investing: as an investment firm, we
seek to generate strong returns by capitalizing on thematic
growth trends and transforming attractive businesses into
market leaders.
• Bespoke client solutions: as a client-centric organization,
we provide tailored access to private markets and seek
to enhance returns through our portfolio management
capabilities.
• Stakeholder impact: as a responsible investor, we realize
potential in private markets and seek to create sustainable
returns with lasting, positive impact for all of our
stakeholders.
In Exhibit 1, we translate our strategy into specific Group-
and Executive Team-level objectives and executive Board
committee responsibilities.
Outlook 2022
In 2021, the Executive Team together with the Board laid
out a strategic roadmap to continue driving forward multi-
year sustainable growth by building on the firm’s strong
foundation. This strategic roadmap is comprised of key
initiatives across the firm’s six strategic focus areas. As a
result, we will be amending the framework for the qualitative
assessment criteria for Executive Team members in 2022.
The qualitative factor will newly be based on these
key initiatives (80%) and ESG targets (20%), with both
components further divided into key areas. Not only does this
provide clear direction to senior members of the firm but it
also enhances the transparency around our Executive Team’s
performance assessment. There will be no changes to the
quantitative performance measures.
ANNUAL REPORT 2021 Compensation Report
Exhibit 1: 2021 Group- and Executive Team- level objectives & executive Board committee responsibilities
Group level
Objectives
Investment platform
• Achieve sustainable growth and scale of investment capacity
• Create long-term value in portfolio assets
Financials
• Focus on sustainable growth through client satisfaction and therefore AuM growth
• Balancing cost growth vs. revenue growth
Strategy implementation
• Successfully implement key strategic initiatives – six strategic focus areas
• Ensure business & ownership excellence across our platform and businesses
ESG
• Promote ESG governance throughout the firm with measurable D&I goals
•
Implement a robust and detailed ESG strategy to be rolled out across the portfolio
Executive Team level Objectives
Investments
• Achieve asset class-specific investment goals
• Meet asset class-specific return targets
• Establish best practices in corporate governance amongst portfolio assets
Clients
Services
Corporate
ESG
%
0
8
%
0
2
• Extend client coverage (regional and type of investors)
• Best-in-class client coverage (including compliance)
• Achieve fundraising goals (mandates, flagship programs and structured programs)
• Maintain excellent investment service levels
• Provide best-in-class client servicing
• Contribute to our PRIMERA1) platform to the benefit of investments, clients & employees
• Provide necessary corporate IT infrastructure landscape to ensure operational excellence
• Maintain excellent compliance track record
• Establish framework for hiring, onboarding, developing, and retaining top talent
• Achieve our 25 by 2025 female leadership targets2)
• Develop and implement an entire suite of ethical, diversity, and behavioral trainings
according to our Code of Conduct
• Establish a deep-dive ESG engagement with every one of our lead direct investments
Executive Board level
Objectives
Strategy
Committee3)
• Drive the firm via the Board on major business, corporate, and organizational initiatives
• Guide human capital development, financial planning, and use of financial resources
Investment Oversight
Committee
• Ensure quality/consistency of decision making processes and investment performance
•
Implement investment-related quality standards and measurement methods
Client Oversight
Committee
• Drive strategic fundraising initiatives and identify new key product & fundraising themes
• Lead the coverage of the firm’s key client prospects and global consultant network
1) PRIMERA is our proprietary private markets database.
2) By 2025, we wish to substantially increase the number of our female Board members and Senior Members of Management to at least 25 (as of 31 December 2021: 12).
3) As of 1 January 2022, the Strategy Committee will be renamed to “Corporate Development Committee”; members of the Corporate Development Committee are Steffen Meister and
Dr. Martin Strobel.
Partners Group | 129
ANNUAL REPORT 2021
Compensation Report
For Executive Team members, LTI consists of two plans, the
MPP and the SPP. As in previous years, executive members of
the Board of Directors were granted their LTI entirely in MPP
due to their significant shareholding in the firm.
Linking LTI pay to performance
Management
Performance Plan
(MPP)
Share-based
Participation Plan
(SPP)
Drive profitable
growth and investment
performance
(1) Minimum growth of
Management Fee EBIT
over a 5-year period
and (2) Generation of
performance fees
Vests linearly over a
5-year period, subject
to a minimum 5-year
tenure in the respective
committee. Before
that, it has a 5-year cliff
vesting
Drive ownership
mentality
No direct
performance
condition; indirect via
appreciation of share
price
Vests in years three
(34%), four (33%) and
five (33%), contingent
on continued
employment
In Partners Group shares,
from year 6 until year 14
In Partners Group
shares upon vesting
50% of LTI
50% of LTI
Philosophy
Performance
condition
Vesting1)
Payout
Allocation
20212)
Percentage
of total
compensation3)
36%
36%
1) Vesting rules in case of retirement: at the time of retirement, all LTIs for Executive
Team members and executive members of the Board of Directors shall be deemed to
have fully vested and become unrestricted, provided that the employee has reached the
age of 55 and has served the firm for ten years or more as a Managing Director/Partner.
The vesting relief is subject to the following conditions: the employee is considered a
good leaver, agrees to sign a two-year non-compete agreement and will have no new
principal employment in the private markets industry. The NCC may use its discretion to
make further adjustments to the rules outlined above on a case-by-case basis in order to
achieve the best result for both the business and the employee coming up to retirement
2) The NCC decides the allocation of MPP grants based on the total performance fee-
weighted investment volume generated during the relevant period. The more potential
performance fees generated, the larger the potential upside which may lead to a higher
MPP allocation. Thereby, the proportion of MPP relative to the overall LTI pool can range
from approximately one-third to two-thirds. The remainder will be granted in SPP.
3) Excludes former Executive Team members.
1.2.1. Management Performance Plan (MPP)
MPP is the core LTI program as it allows for significant
upside and reinforces a strong alignment of interests with
clients and stakeholders through its two components. Its
first component focuses on achieving Management Fee EBIT
growth measured over a five-year period, while the second
component focuses on the generation of performance fees,
which ultimately derives from active value generation and
the realization of investment opportunities in underlying
client portfolios. Achieving only one condition while not the
other results in no payout. For instance, as shown in Exhibit
3, if better than ex ante defined return targets for our client
130 | Partners Group
portfolios are achieved than the MPP payout can increase.
The reverse holds true, if returns for clients fall below
performance targets than the MPP payout will decrease. In
the worst-case scenario of insufficient value creation, the
payout can be zero.
In order to become eligible for a potential payout, the firm’s
Management Fee EBIT must grow at a defined minimum rate
over a five-year period. This rate is set with both a floor rate,
below which payout will be zero, and a cap rate, thus limiting
the upside potential. The floor and cap growth rates will
be disclosed each year by the NCC. For the 2021 MPP, the
minimum annual growth rate was set at 5% p.a. and the cap
was set at an annual growth rate of 15% p.a. over a 5-year
period. The full performance fee payouts resulting from the
grant year’s investment vintage, if any, begin to be generated
after five years and will be received by MPP participants
from year 6 onwards. The payout will be made in a number of
Partners Group shares in the value of the respective payout
of actual performance fees realized. Given the length of this
period, we believe the MPP promotes a focus on sustainable
value creation and avoids inappropriate risk-taking or short-
term profit maximization at the expense of long-term return
generation for our clients and shareholders.
Condition 1: Management Fee EBIT component (year 1 to 5)
The Management Fee EBIT is an alternative performance
metric and is calculated as total EBIT (IFRS) less recognized
performance fee revenues adding back performance fee
related expenses. For a detailed definition please refer to the
‘Key definitions and alternative performance metrics’ section
of the Annual Report 2021. Adjustments to the Management
Fee EBIT calculation may occur should accounting or other
extraordinary adjustments with an effect on the financials
make the comparison between the start and end years
inconsistent.
For the purpose of the MPP assessment, the actual and
audited Management Fee EBIT from the respective year
under review will be used. As an example, a Management
Fee EBIT growth of 10% after a 5-year period (the first MPP
interval) results in a multiplier of the initial grant value of
5.1x. If the initial grant value in 2021 was CHF 1.0 million
then, the intrinsic value of the first MPP interval would be
CHF 5.1 million in 2026. The payout of this intrinsic value will
then be linked to the performance fee pool of the respective
MPP grant year as explained further below (the second MPP
interval). A growth rate below 5.0% after a 5-year period
results in no payout.
ANNUAL REPORT 2021 Compensation Report
Exhibit 2: Minimum Management Fee EBIT
growth of 5% needed to create value in MPP
(illustration)
% p .a.
5
+ 5 % p . a .
1
+
201%
128%
cap
threshold
100%
2021
Management Fee EBIT
2026
Management Fee EBIT
For the 2021 MPP grant, the intrinsic value of the MPP
right will be measured five years after the grant date and
cannot exceed 11.1x of the grant fair value. We believe that
measuring performance over an extended five-year period
is consistent with the long-term orientation of the firm’s
business.
Condition 2: Performance fee component (year 6 to 14)
While the Management Fee EBIT focuses on the profitable
growth of the firm in order to determine an intrinsic value,
the performance fee component focuses entirely on how
the intrinsic value will be paid out in the following years
(in the form of Partners Group shares). In other words,
the performance fee component can further influence
the magnitude and the timing of the payout as both are
dependent on the actual performance fees generated from
the particular year in which MPP rights were granted.
• Magnitude: the magnitude depends on the actual
performance fees that the firm generates from the
investment period2 of the respective year over the next
14 years. For that purpose, the firm defines a target that
is based on ex ante model returns. This target is set at
100% and needs to be achieved over a time period of
14 years (number “1” in Exhibit 3). For example, if the
intrinsic value of MPP rights is 100 and 100% of the
targeted performance fees are actually paid to the firm,
the plan participant receives Partners Group shares in
the value of 100. The total payout can be higher than
the originally targeted nominal amount in the case of
consistent investment performance above underlying
assumptions (number “2” in Exhibit 3), or lower than the
originally anticipated nominal amount in the case of lower
investment performance (number “3” in Exhibit 3). In the
worst-case scenario, the amount can be zero, irrespective
of the intrinsic value determined through the Management
Fee EBIT component.
2 Investment period is defined as Q4 of the prior year until Q3 of the respective financial
year under review.
Exhibit 3: Illustration of actual MPP payout based
on underlying investment performance
Underlying
investment
performance
100%
2
1
3
Intrinsic value
of MPP rights
(example)
Actual MPP
payout
• Timing: the MPP payout occurs as the performance fees of
the underlying investment vintage materialize, as illustrated
in Exhibit 4. After each year, we compare the actual
proportion of performance fees generated against the
defined target. We then pay out the same proportion of
the intrinsic value of the MPP grant in the form of Partners
Group shares. For example, should the 2021 investment
year pay out 15% of its target payout in 2027, we would
pay out 15% of the intrinsic value of MPP (as determined
by the first MPP interval) to plan participants in the form
of Partners Group shares in 2027.
Exhibit 4: Actual MPP payout occurs as the
performance fees of the underlying investment vintage
materialize (illustration)
Expected payout of intrinsic value = 100%
1
2
3
Better than
expected
100%
Worse than
expected
Payment based on underlying
performance fees generated
6
7
8
9
10 11
12
13
14
years
Partners Group | 131
ANNUAL REPORT 2021 Compensation Report
Historic performance fee payouts vs. target
Future potential performance fees will depend on the
development of the investments of a reference vintage3.
Depending on the investment outcomes and timing of the
investment realizations, it often takes up to 14 years until the
full payout of performance fees is received.
As of 31 December 2021, the actual performance fees paid
from the reference investment vintage can be below or
above the target intrinsic value payout of 100% as displayed
in Exhibit 4. Over the 11-year period from 2010 to 2021, so
far, actual payout of Global Management Carry Pools has
only exceeded 100% on one occasion in 2012 as displayed in
Exhibit 5. While all reference investment pools are expected
to continue to pay out performance fees in the years to
come, they also demonstrate the rigor of past target setting.
Mature (limited additional value creation expected)
In value creation phase
Too early
168%
Exhibit 5: Actual performance fee payout
since 2011¹⁾
180
160
140
120
100
80
60
40
20
0
41% 35% 29%
100% Target
85%
24%
13%
94%
71%
58%
5% 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1) Any payouts received of a reference investment vintage in the first five years, a time
period where performance condition 1 has not been fully assessed, will be accrued and
only paid out in year 6 contingent on the performance of the Management Fee EBIT.
1.2.2. Share Participation Plan (SPP)
The SPP encourages the Executive Team to create shareholder
value through a rising share price. SPP not only fosters an
ownership mentality but also incentivizes Executive Team
members to drive the operational performance of the firm and
protect its reputation. The SPP promotes a long-term vision
and therefore vests according to the following schedule: 34%,
33% and 33% over years 3, 4 and 5, respectively, contingent
on continued employment with the firm.
1.3. Equal pay analysis
Partners Group is an equal opportunity employer and
complies with all applicable fair employment practice laws.
In order to provide equal employment and advancement
opportunities to all individuals, Partners Group commits
to making all employment decisions based on merit,
qualifications, and abilities.
3 Example: investments made between Q4 2020 and Q3 2021 “2021 investment vintage”.
132 | Partners Group
Partners Group’s share purchase strategy has led
to no share capital dilution since IPO in 2006
Partners Group places a high level of importance on
avoidance of share capital dilution for the protection of
all stakeholders. A strict process is followed each year to
ensure that the firm holds ample treasury shares to cover
existing equity incentive programs.
As testament to this process, there has been zero
dilution of Partners Group’s share capital since the
IPO in March 2006. Furthermore, the treasury shares
necessary to cover the granted non-vested shares are
systematically purchased by the firm in advance. Further
information on Partners Group’s share-based payment
plans can be found in note 4 to the consolidated financial
statements included in the 2021 Annual Report.
As of 31 December 2021, the Group had 1’167’386
options and non-vested shares outstanding (2020:
1’484’115). The treasury shares that are necessary to
cover the granted non-vested shares have already been
put aside in separate escrow accounts in the name of
the employees. Thus, the number of treasury shares is
already net of non-vested shares outstanding. As of 31
December 2021, 463’732 (2020: 319’783) net treasury
shares are necessary to cover the outstanding in-the-
money options at the year-end share price of CHF
1’512.50 (2020: CHF 1’040.00). This amount takes into
account the different strike prices of different option
programs.
As of 31 December 2021, Partners Group held 330’966
treasury shares therefore if all options shares were
exercised today an additional 132’766 shares would be
needed in excess of the treasury shares already held.
The aggregate number of shares required is 0.50% of
the total share capital. We monitor dilution indicators
and will report any changes in the annual Compensation
Report.
ANNUAL REPORT 2021 Compensation Report
On an annual basis, the human resources team performs an
equal pay analysis, which has shown no pay inequalities in
2021 or in recent years. The 2021 analysis was performed
using the assessment methodology of the EDGE Certified
Foundation. EDGE is a leading diversity and inclusion
organization, offering a global standard with independent
verification. The analysis was performed at a global level
and confirmed that Partners Group’s pay gap is deemed
insignificant.
In addition, Partners Group complied with its legal obligation
to perform a separate Swiss equal pay analysis under the
requirements of the Gender Equality Act and Ordinance and
was awarded the “We Pay Fair” certificate from the Center
of Diversity and Inclusion of the University of St. Gallen last
year. Given that the firm performed the analysis in 2020,
it was exempt from performing a separate Swiss equal pay
analysis again in 2021.
1.4. Non-financial income / benefits disclosed
according to the Ordinance against Excessive
Compensation (“OaEC”)
The OaEC requires Board members of listed companies to
disclose all benefits directly or indirectly provided to the
Executive Team and the Board of Directors, even if not
related to compensation. As such, in relation to our firm-wide
Employee Commitment Plan (ECP), we disclose any preferred
terms granted to members of the Executive Team and the
Board for select investments in Partners Group programs.
The firm has a history of investing in its own investment
programs alongside its clients (typically around 1% of the
program’s size) with its balance sheet4. This aligns the
interests of clients with those of the firm and its employees.
For select direct investment programs, our institutional
clients’ expectations around the size of such investments
increase beyond the typical 1% of the program’s size.
Given our strong liquidity position, Partners Group could
also fully fund these investments alongside clients from its
balance sheet. However, the Board decided to overweight the
firm’s lean balance sheet approach versus a more pronounced
usage of the balance sheet for investment purposes and
therefore favored a strategy that requires more employees
to meet additional investment expectations from clients. The
view of our Board also reflects the opinion of external share-
holders who value a lean balance sheet strategy higher.
4 Generally, the firm does not earn any revenues on its own investments alongside clients
as any fees levied are rebated.
The analysis from the Center of Diversity and
Inclusion of the University of St. Gallen showed no
equal pay gap between male and female employees.
As a result, Partners Group was awarded with the
certificate “We Pay Fair”.
Therefore, Partners Group’s Board has introduced the ECP to
increase incentives for employees to provide more substantial
commitments and also align an even greater number of
employees with clients. In line with industry practice,
Partners Group offers its employees (including the Executive
Team and the Board of Directors) similar preferential terms
and conditions to invest in its private markets programs,
offering such investments at no management fees and no
performance fees.
According to the OaEC, these waived fees are subject to
approval by shareholders. The NCC discloses in this report
all such waived fees granted to the Executive Team and
members of the Board of Directors for investments made
alongside investors in the firm’s closed-ended investment
programs (see Exhibit 12, footnote 3 for the Executive Team
and Exhibit 15, footnote 4 for the Board of Directors). The
respective revenues not generated due to the fees waived
Partners Group | 133
ANNUAL REPORT 2021 Compensation Report
for independent Board members amounted to approximately
CHF 7 thousand and represented <0.0003% of the firm’s
total revenue. The waived fees are therefore immaterial to
influence their independent judgment.
The NCC fulfills the duties set out for it in the firm’s articles
of association. In particular, the committee oversees the firm’s
compensation structure to ensure adherence to Partners
Group’s strategy and culture and to recognize best practices:
1.5. Bonus-malus system
The Board may decide not to pay any vested but unpaid
incentive compensation (malus) or may seek to recover
incentive compensation that has been paid in the past
where personal conduct of an award recipient has proven
to be in material breach of applicable laws, regulations or
internal conduct rules. Materiality is typically given where
such conduct resulted in serious damages, including loss
of business and reputation damages, suffered by Partners
Group. In 2021, no action by the Board in this respect was
taken.
1.6. Compensation governance
1.6.1. Legal framework
The Swiss Code of Obligations as well as the Corporate
Governance Guidelines of the SIX Swiss Exchange require
listed companies to disclose information about the
compensation of members of the Board and Executive Team,
their equity participation in the firm, and any loans made to
them. This Annual Report fulfills that requirement. In addition,
this Annual Report is in line with the principles of the Swiss
Code of Best Practice for Corporate Governance of the Swiss
Business Federation (economiesuisse).
1.6.2. Compensation decision-making authorities
Compensation allocation is an important and challenging
governance and leadership task. As such, Partners Group’s
Board assigns the NCC with the task of carrying out a
systematic process on an annual basis. The Committee
has combined responsibilities for “nomination” and
“compensation” proposals, as both are an integral and a
closely linked part of a typical compensation.
The nomination process ensures the assessment and
nomination of individuals is based on their contribution to
the firm’s success and on their potential for development,
while the compensation process ensures the respective
adjustments to compensation based on functions,
responsibilities, and performance. Giving one committee
responsibility for both the nomination and compensation
processes should ensure a seamless transition between a
professional’s development and compensation.
134 | Partners Group
• It reviews compensation proposals by the Executive
Team to ensure they comply with determined principles
and performance criteria and evaluates the proposals’
consistency with the firm’s values, such as “fair pay” and
“pay for performance.”
• It advises and supports the Board and the Executive
Team with regard to firm-wide promotions, leadership
development measures, and succession planning.
• It submits nomination and compensation motions and
recommendations to the Board and is also responsible for
the preparation of this Compensation Report.
1.6.3. Committee members
As of 31 December 2021, the members of the NCC were
Grace del Rosario-Castaño (Chair), Joseph P. Landy, and
Dr. Martin Strobel. According to the independence criteria
outlined in our Corporate Governance Report (section 3),
Grace del Rosario-Castaño, Joseph P. Landy, and Dr. Martin
Strobel are independent Board members. The members
were elected by shareholders for a one-year term with the
possibility of re-election.
1.6.4. Committee meetings & decisions taken
During the year, members of the NCC interact with the
Chairman, the CEO, and other members of the Executive
Team on a regular basis. Throughout 2021, formal and
informal meetings were held with a large group of the firm’s
senior leaders to discuss compensation budgets, department
bonus allocation plans, promotion criteria, and other
compensation-related topics.
Typically, the NCC interacts via several informal meetings
throughout the year and holds two decision meetings in the
second half of the year:
• In its first decision meeting (Q3), the NCC confirms the
budget allocations for short term total cash compensation
and LTIs (MPP and SPP). During the meeting, the
committee defines guidelines for the allocation of the
various compensation pools.
• In its second decision meeting (Q4), the NCC approves
the compensation proposal for the Executive Team and
proposes the compensation for the CEO and Board
members. Compensation approval authorities are outlined
in Exhibit 6. Partner- and Managing Director-level
promotions and compensation are ratified individually.
ANNUAL REPORT 2021 Compensation Report
Exhibit 6: Approval authorities
Compensation pools
Budget/proposal
Approval
Board of Directors,
Executive Team
Group-level
budget
Department-level
budget
NCC
NCC
Chairman & CEO
Q4
Q3
Q3
Shareholders’ AGM
May
(following year)
Board of Directors ratifies
NCC approves
Q4
Q4
Individual compensation
Proposal
Approval
Q4
Board of Directors approve
Q4
Chairman of the
Board of Directors
Members of the
Board of Directors
CEO
Chair of the NCC
NCC
Executive Team
Chairman & CEO
Senior Members of
Management
Members of Management &
other professionals
Executive Team
Q4
NCC approves,
Board of Directors ratifies
Q4
Department Heads
Executive Team approves
Note: in the case of approving the Chairman’s compensation and the additional fees for the Nomination & Compensation Committee (NCC) members, the Board member concerned does not
participate in the recommendation involving his or her own compensation.
Partners Group | 135
ANNUAL REPORT 2021
Compensation Report
2. Executive Team
The NCC continues to strive for consistency in the
firm’s approach to compensation. While the total base
compensation is fixed and based on function, the LTI
compensation has a clear link to strategy and tangible targets.
Exhibit 7: Executive Team’s compensation
Type of compensation
Instrument Timing
Total base
compensation
Fixed cash base salary &
benefits
Deferred cash payment
Cash/
fixed1)
Short-
term
Long-term
incentives
Share Participation Plan
(SPP)
Management
Performance Plan (MP)
Equity
(share-
based)/
variable
Long-
term
1) Deferred cash compensation is awarded at year end. It is intended to be stable and
predictable and only adjusted downwards in the case of significant underperformance by
the firm or on individual level.
2.1. Total base compensation
The total base compensation is based on function and
represents a stable compensation component. The cash base
salary and deferred cash payment, together, comprise the
total base compensation. As of 2021, cash base salaries, and
by extension deferred cash payments, for Executive Team
members are set dependent on an individual’s function.
For the sole CEO, the cash base salary and deferred cash
payment are each set at USD 900’000, as of 2021. The cash
base salary of the new sole CEO was increased by 20% due
to the change of role (from co-function to sole function). The
new cash base salary reflects the increased responsibility
(from overseeing more investment-related activities to all
of Partners Group’s activities) and was primarily based on
increased levels of complexity as the firm builds out its
international footprint.
Exhibit 8: Total base compensation for Executive
Team members in 2021
(in thousands)
Function
Cash
base salary (a)
Deferred cash
payment (b)
Total cash
compensation
CEO
USD 900
USD 900
USD 1‘800
Cash base salary & pension benefits: cash base salaries are
paid on a monthly basis and reviewed annually. The primary
purpose of benefits, such as pension and insurance plans, is to
establish a level of security for employees and their dependents
with regards to the major economic risks of sickness, accident,
disability, death, and retirement. The level and scope of pension
and insurance benefits provided is country-specific and
influenced by local market practice and regulations.
The total cash base salary received as Executive Team,
including existing members, new joiners as well as leavers,
amounted to CHF 4.0 million (2020: CHF 3.7 million). The
increase in cash base salary is almost exclusively due to the
rotation of Executive Team members.
Deferred cash payment: the fixed deferred cash payment
is awarded at year-end to the Executive Team. This is a
component of the total base compensation and is not
considered a variable short-term incentive. The individual
deferred cash payment set by our compensation framework
is intended to be stable and predictable. The NCC has the
flexibility to adjust the deferred cash payment downwards
(not upwards) in the rare case the firm or an individual
Executive Team member severely underperforms in the
year under review. An adjustment could also be applied in
exceptional cases, such as crisis years that materially affect
the quantitative performance factors. Any such adjustment,
and the reason for the adjustment, would be made
transparent to shareholders. Executive Team members are
typically notified of their deferred cash payment at year-end
and receive the cash the following February.
The total deferred cash payments received by the Executive
Team amounted to CHF 3.8 million (2020: CHF 3.7 million).
This amount includes existing members, new joiners, and
leavers of the Executive Team. The increase in total deferred
cash payments is almost exclusively due to the rotation of
Executive Team members.
2.2. Total long-term incentives (“LTI”)
LTI continue to encourage true entrepreneurialism and a
long-term perspective. The nominal LTI pool granted for the
year 2020 serves as a basis to calculate the LTI pool for the
year 2021. Therefore, we linked it to two equally weighted
annual performance assessments:
• Quantitative achievements: assess the firm’s financial
performance and investment development.
Executive
Team
Capitalize
dependent on
function
Capitalize
equal to cash
base salary
(a) + (b)
• Qualitative achievements: consider whether the firm’s
target objectives and ESG targets set for 2021, as outlined
in Exhibit 1, were met.
136 | Partners Group
ANNUAL REPORT 2021 Compensation Report
Based on the assessment of both quantitative and qualitative
achievements, a compensation factor is determined, which
is then multiplied by the previous year’s nominal LTI pool.
The NCC has decided to cap the compensation factor at a
maximum of 2.0x the previous year’s LTI pool on the upper
end, preventing excessive upside for LTI participants. In
addition, the NCC has removed the floor (0.5x in 2020)
thereby removing any guaranteed level of value or downside
protection.
For example, a compensation factor of 1.0x means that the
nominal LTI pool in the year under review remains the same
as in the previous year (adjusted for leaving or new team
members). Due to the removal of the floor, in the most severe
case, a compensation factor of 0.0x means that the nominal
LTI pool would be equal to zero. In such cases of significant
underperformance, the subsequent year’s reference LTI
pool would consequently also be zero. Should this occur, the
NCC would reference an LTI pool in a year which is most
comparable to the year under review, the NCC would disclose
the reason and the LTI reference pool chosen.
The performance assessment of the Executive Team in 2021
applied the methodology described above. In 2021 the
firm experienced strong client demand underlined by USD
25 billion in new commitments in the twelve-month period
ending on 31 December 2021 (2020: USD 16.0 billion).
The firm’s total AuM increased to USD 127 billion as of 31
December 2021 (31 December 2020: USD 109 billion),
representing a net growth of 17% (2020: 16%). Investment
activities amounted to USD 33 billion (2020: USD 10 billion)
and therefore generated significantly higher performance
fee-weighted investment volumes than in the previous year.
2.2.1. Quantitative measures (50% weighting)
The financial performance of the firm reflects its operational
strength and is typically a result of successful past decision-
making. As such, the year-on-year development of the firm’s
Management Fee EBIT is one of two quantitative input
components used to determine the compensation factor.
• Financial performance (50% weighting)
Assessment: we assess financial performance based
on the year-on-year change in Management Fee EBIT.
The Management Fee EBIT is defined as total IFRS EBIT
less recognized performance fee revenues adding back
performance fee related expenses, as defined in the “Key
definitions and alternative performance metrics” section of
the Annual Report 2021. Adjustments to the Management
Fee EBIT calculation may occur should accounting or other
extraordinary adjustments with an effect on the financials
make the comparison between the start and end years
inconsistent.
Result: the Management Fee EBIT 5 considered at the time
by the NCC has risen by 20%. The financial performance
therefore strongly outperformed expectations and resulted
in a compensation factor of 2.0x.
Successful investments made in the year under review
provide the basis for potential future performance fees. Their
year-on-year development serves as the second quantitative
input component determining the compensation factor.
• Investment development (50% weighting)
Assessment: we assess investment development based on
the year-on-year change in the performance fee-weighted
investment volume (based on standardized model return
targets as defined on the investment date, adjusted for
non-ordinary effects).
Result: the performance fee-weighted investment volume
increased by more than 100% compared to the prior
year. The investment development therefore strongly
outperformed expectations and resulted in a compensation
factor of 2.0x.
As a result of the above, the quantitative achievements in
2021 resulted in an average quantitative compensation factor
of 2.0x.
Exhibit 9: Quantitative assessment 2021
r
o
t
c
a
f
n
o
i
t
a
s
n
e
p
m
o
C
)
r
a
e
y
t
s
a
l
.
s
v
(
2.0x
1.0x
0.0x
significant
underperformance (<100%)
Investment development
(year-on-year growth)
2021
expected
performance (+/-0%)
strong
outperformance (>100%)
Financial performance
(year-on-year growth)
2021
r
o
t
c
a
f
n
o
i
t
a
s
n
e
p
m
o
C
)
r
a
e
y
t
s
a
l
.
s
v
(
2.0x
1.0x
0.0x
significant
underperformance (<0%)
expected
performance (+/-10%)
strong
outperformance (>20%)
2.2.2. Qualitative measures (50% weighting)
The assessment of the qualitative achievements considers
performance metrics such as strategy implementation and
ESG targets. The Executive Team performance objectives,
as outlined in Exhibit 1, differ depending on a member’s
function and level of responsibility. At Executive Team-
level, each member has additional objectives with a greater
focus on either investment-, client-, corporate-, service- or
environmental, social, and governance (ESG) as well as
corporate social responsibility (CSR)-related activities. At
Board committee-level, each executive member of the Board
5 Management Fee EBIT as of latest 2021 forecast available at the time of assessment.
Partners Group | 137
ANNUAL REPORT 2021
Compensation Report
of Directors has additional responsibilities through his or her
membership in the respective sub-committees. The 2021
performance of the Executive Team as well as the executive
Board was described below:
• Strategy implementation (80% weighting):
Assessment: we assess the implementation of key strategic
initiatives as well as continued business and operational
excellence across our platform and businesses. In 2021,
the key focus was on the implementation and development
of the firm’s Group- and Executive Team-level objectives
as outlined in Exhibit 1. These objectives focus on the
firm’s investment, client, service, and corporate areas and
contain further sub-targets.
Result: the Executive Team met expected performance
through a successful implementation of the firm’s Group-
as well as Executive Team-level objectives. Furthermore,
the Executive Team together with the Board designed
a strategic roadmap comprised of key initiatives across
the firm’s six strategic focus areas that will serve as the
baseline for the Executive Team’s qualitative assessment in
2022.
Performance factor: 1.00x
• ESG targets (20% weighting):
Assessment: we have a strong commitment to
sustainability. Creating a lasting positive impact is one of
the core principles of our Charter and thus it is crucial
for it to be one of the factors in the overall performance
assessment.
Result: in 2021 the Executive Team worked towards
specific ESG targets. These targets are centered
around our 25 by 2025 initiative, ethics-related training
requirements, and ESG engagement across our lead direct
investments. The Executive Team also advanced the firm’s
efforts on the climate front by developing the climate
change strategy across our firm. In addition, the Executive
Team also developed the firm’s sustainability strategy. Its
implementation and targets will serve as a basis for their
qualitative evaluation in 2022.
Performance factor: 1.00x
Summary
As a result of the quantitative and qualitative assessment,
the overall LTI pool in 2021 increased by 50% to 1.5x last
year’s pool (the nominal LTI pool granted for the year 2020
serves as a basis to calculate the LTI pool for the year 2021).
Adjustments are made as necessary to account for new
joiners and leavers of the Executive Team.
The Executive Team was granted nominal LTI amounting to
CHF 20.6 million in 2021, adjusted for leavers and new team
138 | Partners Group
members (2020: CHF 15.1 million). Half of the value was
granted in SPP and half in MPP. The allocation for executive
members of the Board was fully in MPP (100% performance
based). Exhibit 12 shows the total full-year compensation of
the Executive Team in detail.
Once the top-down allocation for the Executive Team
has been completed and the overall LTI pool has been
determined, the individual assessment of each Executive
Team member commences.
2.3. CEO compensation
David Layton: receives his total base compensation in USD;
for the purpose of the below his compensation is expressed
in CHF. David Layton assumed the sole CEO role effective
1 July 2021. Until 30 June 2021, as Co-CEO, he received
an annualized cash base salary of CHF 0.69 million. From
1 July 2021, as sole CEO, he received an annualized cash
base salary of CHF 0.82 million. Thus, he earned an average
cash base salary of CHF 0.75 million in 2021. His full year
2021 total base compensation amounted to CHF 1.51
million (2020: CHF 1.41 million) and includes the average
deferred cash payment of CHF 0.75 million. The total base
compensation including other compensation, such as pension
benefits and social security payments amounting to CHF 1.8
million (2020: CHF 1.5 million).
David Layton’s LTI grant increased by 57% to 1.57x the
previous year’s LTI grant thus amounting to CHF 6.00 million
in 2021 (2020: CHF 3.83 million), outperforming the average
LTI pool increase of 1.50x. David Layton received 50% of
the LTI value in SPP and 50% in MPP. The outperformance is
based on a number of factors according to Exhibit 1: based
on Group level objectives, David Layton, as CEO and Co-
CEO respectively, substantially contributed to the overall
outperformance of the investment platform as well as the
outperformance on the firm’s financials. In the second six
months of 2021, he co-led the strategy implementation
which will serve as a benchmark for the Executive Team’s
performance measure in the years to come. Based on
Executive Team level objectives, David Layton – as Head
Private Equity – drove the outperformance of the private
equity business department.
2.4. Highest paid Executive Team member
The highest paid Executive Team member in 2021 was the
firm’s CEO, David Layton.
ANNUAL REPORT 2021 Compensation Report
2.5. Compensation caps
In 2020, the NCC introduced a compensation cap for the LTI,
with the granted nominal value of LTI not to exceed 5x the
total base compensation of an Executive Team member (cash
base salary + deferred cash payment). For 2021, the ratio
between the committee members’ LTIs compared to their
total base compensation ranged from 0.75x to 3.98x. These
ratios exclude any other benefits (social security and pension
contributions) and show the varying compensation levels
amongst individuals based on their function, achievements,
and responsibility.
2.6. Minimum shareholding guidelines
Given the recent rotation of members within the Executive
Team who own a limited number of Partners Group shares,
the NCC has implemented minimum shareholding guidelines
for all Executive Team members as of 2021. These guidelines
further accentuate the alignment between shareholders and
the Executive Team.
The minimum shareholding requirement is based on a multiple
of the Executive Team member’s respective cash base salary.
The CEO must hold a minimum of 6.0x his cash base salary
and Executive Team members must hold a minimum of 3.0x
their respective cash base salary in Partners Group shares.
Members will have a 5-year period to become compliant
with this requirement, starting from 2021 or the year of their
appointment, whichever is later. Once achieved, the shares
must be held throughout their tenure on the Executive Team.
The minimum shareholding requirement encompass shares
granted under the firm’s LTI plans as well as shares privately
purchased by Executive Team members outside of these
plans.
Exhibit 10: 2021 Minimum Shareholding Guidelines
Function
Multiple of
base salary
Cash base
salary
(in thousands)
Minimum
shareholding
requirement
(in thousands)
CEO
Executive
Team
6.0x
3.0x
USD 900
USD 5‘400
Example:
CHF 500
Example:
CHF 1‘500
Of the Executive Team’s eight members, five members were
found to be compliant with the new minimum shareholding
guidelines. Each of the three remaining members will have
5-years to become compliant with the minimum shareholding
threshold. Compliance with the minimum shareholding
guidelines will be evaluated and reported on an annual
basis. The shareholdings of Executive Team members as of
31 December 2021 are shown in note 15 to the financial
statement of Partners Group Holding AG.
2.7. Executive Team loans (audited)
Executive Team members may apply for loans and fixed
advances, subject to an internal review and approval process.
As of 31 December 2021, no loans were outstanding to
either current or former Executive Team members or to a
related party of a current or former Executive Team member.
2.8. Employee contracts (audited)
In the event of the departure of an Executive Team member,
employee contracts do not have special provisions such as
severance payments, “golden parachutes”, reduced stock and/
or options and MPP vesting periods etc. in place. Individual
settlements will always be subject to the review and approval
of the NCC. Partners Group did not make any such payments
to current Executive Team members in 2020 or 2021.
2.9. Approved budgets of predecessor programs and
their payouts
In 2010, Partners Group launched a dedicated performance
fee-related compensation program, the Management Carry
Plan (MCP), whereby a percentage of the potential future
performance fees from investments is allocated to senior
professionals as well as the Executive Team. The MCP
was designed as a long-term incentive plan which aligns
the rewards for the firm’s professionals with investment
performance and the firm’s overall financial success.
For the years 2014 until 2017, under the Ordinance against
Excessive Compensation in listed joint stock companies
(“OaEC”) issued by the Swiss Federal council, shareholders
expressed a binding vote on the MCP budgets of the Board
of Directors and Executive Team. As of 31 December 2021,
the actual payout to current and former Executive Team
members or to executive members of the Board of Directors
has not exceeded the approved budgets for the years 2014
through 2017.
Partners Group | 139
ANNUAL REPORT 2021 Compensation Report
Exhibit 11: Composition of the 2021 Executive Team and function of its members
Name
Joined Partners
Group in
Nationality
Age
40
42
38
43
46
David Layton
2005
US American
Kirsta Anderson1)
2020
US American
Sarah Brewer1)
2008
British
Roberto Cagnati1)
2004
Swiss/Italian
Juri Jenkner
Andreas Knecht
Marlis Morin
2004
2009
German
2003
Swiss/Italian
Hans Ploos van Amstel
2020
Dutch
Former members of the Executive Team
André Frei2)
Dr. Michael Studer2)
1) Member as of 1 July 2021.
2000
2001
Swiss
Swiss
Position
Chief Executive Officer, Head Private Equity
Chief People Officer
Co-Head Clients Solutions
Chief Risk Officer3), Head Portfolio Solutions
Head Private Infrastructure
Swiss
52 Chief Operating Officer and General Counsel, Head Corporate Operations
51
56
46
49
Chief Financial Officer, Head Group Finance & Corporate Development
Head Client Services
Chairman Sustainability
Chief Risk Officer
2) Member until 30 June 2021, Dr. Michael Studer Chief Risk Officer until 31 December 2021.
3) As of 1 January 2022.
Exhibit 12: Executive Team compensation for the full-year 2021 (audited)
In thousands of Swiss francs
Cash base
salary
Deferred
cash
payment
Other1)
Subtotal
cash
compensation
LTI (SPP)
LTI (MPP)2)
MCP6)
Total3), 4)
2021
David Layton, Chief Executive Officer and Head
Private Equity
754
754
312
1'820
3’000
3’000
7'820
Total Executive Team
3'397
3'381
1'154
7'933
10’179
10'175
-
28'286
Former members of the Executive Team5)
625
455
116
1'196
197
-
8'685
10'077
Total Executive Team, incl. former members
4'022
3'836
1'270
9'129
10'375
10'175
8'685
38'363
1) Other compensation includes payments by Partners Group for pension and other benefits such as social security payments.
2) The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2021 (note 4.3.2. to the consolidated financial statements).
3) Figures above exclude non-financial income (waived fees) for investments made alongside investors in Partners Group’s investment programs under the firm’s Employee Commitment
Program (see section 1.4 of this report). Including these accrued but not yet paid items the total compensation for the entire Executive Team amounts to CHF 38’446 thousand, including
CHF 83 thousand of waived fees. The total compensation of David Layton amounts to CHF 7’868 thousand, including CHF 48 thousand of waived fees.
4) At the AGM in May 2021, shareholders approved a revised maximum total short-term cash compensation budget of CHF 9.00 million for the Executive Team for the fiscal year 2021. The
budget includes cash base salary, pensions, other benefits and a deferred cash payment and excluded social security payments. The actual compensation, excluding social security in the
amount of CHF 1’105 thousand, received in 2021 was in aggregate below the approved compensation budget.
5) André Frei, Co-CEO and Dr. Michael Studer, CRO: members until 30 June 2021.
6) Figures above are presented for illustrative purposes only to increase transparency. Actual values depend on the future performance of the investments attributable to the financial year 2021.
For the table above, for each 1% of carry pool allocation the Group assumed an expected payout range from CHF 0 to CHF 34’665 thousand and used CHF 23’110 thousand as a base scenario for
illustrative purposes. Amounts disclosed use average daily foreign exchange rates (i.e. CHF/USD). In 2010, Partners Group launched a dedicated performance fee-related compensation program, the
Management Carry Plan (MCP), whereby a percentage of the potential future performance fees from investments is allocated to senior professionals (non-Executive Team members). The MCP was
designed as a long-term incentive plan which aligns the rewards for the firm’s professionals with investment performance and the firm’s overall financial success. It is not a share-based incentive plan.
140 | Partners Group
ANNUAL REPORT 2021
Compensation Report
Exhibit 13: Executive Team compensation for the full-year 2020 (audited) DRAFT
In thousands of Swiss francs
Cash base
salary
Deferred
cash
payment
Other1)
Subtotal
cash
compensation
2020
EPP
MPP2)
Total3), 4)
André Frei, Co-Chief Executive Officer
David Layton, Co-Chief Executive Officer and Head
Private Equity
750
704
750
297
1'797
2’000
1’000
4'798
704
55
1'463
2’550
1’275
5'289
Total Executive Team
3'704
3'704
1'255
8'663
10’054
5'024
23'741
1) Other compensation includes payments by Partners Group for pension and other benefits such as social security payments.
2) The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2020 (note 4.3.2. to the consolidated financial statements).
3) Figures above exclude waived fees for investments made alongside investors in Partners Group’s investment programs under the firm’s Employee Commitment Program. Including these
accrued but not yet paid items the total compensation for the entire Executive Team amounts to CHF 23’796 thousand, including CHF 55 thousand for waived fees. The total compensa-
tion of André Frei and David Layton amounts to CHF 4’811 thousand (including CHF 13 thousand of waived fees) and CHF 5’302 thousand (including CHF 14 thousand of waived fees),
respectively.
4) Total compensation of the Executive Team (like-for-like), excluding LTIs and social security costs represents CHF 7.2 million and lies within the approved compensation budget of CHF 7.5
million at the 2020 AGM of shareholders in May. The additional budget required for the new CFO stems from the firm’s “additional budget reserve” for new Executive Team members accord-
ing to art. 37 lit. 6 in our articles of association.
Partners Group | 141
ANNUAL REPORT 2021 Compensation Report
3. Board of Directors
Partners Group’s Board of Directors is entrusted with the
ultimate responsibility for Partners Group’s strategy and
development. The Board applies the same “entrepreneurial
governance” approach to its own firm as Partners Group
applies to its portfolio companies.
The Board consists of executive Board members - the
Executive Chairman and the three founders - and
independent Board members. None of the directors of the
Board have line management functions. Through the Board’s
committees, Board members contribute to investment- as
well as client-related activities and corporate development
initiatives. The Chairman also oversees the global Executive
Team in leading the operations and execution of the strategy.
The Executive Chairman typically invests 3-5 days a week
towards his mandate. The founders dedicate approximately
2-3 days a week to Partners Group’s Board activities.
Independent Board members devote 1-2 days a week to
their Board mandates. The substantial time commitment of
Partners Group’s Board is the foundation of a successful
governance geared towards enabling proactive value creation.
The Board sets the compensation for its members at a level
that reflects individual responsibility, contribution, and time
allocated to their Board mandates.
3.1. Compensation guidelines
The compensation of the executive members of the
Board of Directors was set as follows: the cash base
salary is fixed at CHF 0.30 million p.a.; LTI allocations for
the executive members of the Board are assessed in line
with those of the Executive Team and increased by 50%
to 1.5x of the amount granted in 2020. Individual goals are
dependent on a member’s individual function and level of
responsibility as outlined in Exhibit 1. At Board committee-
level, each executive member of the Board of Directors has
additional responsibilities through his or her membership
in the respective sub-committees. Due to their significant
shareholding in the firm, executive members of the Board of
Directors were granted 100% of their LTI in MPP.
For the compensation of independent Board members, the
NCC applied the module-based compensation framework
as outlined below. The compensation is fundamentally
determined by the delegated individual mandates and
committee appointments, the time allocation a Board member
dedicates to their respective duties, and any additional
142 | Partners Group
contribution made by the members to the firm’s business.
Independent Board members are each paid 50% in cash and
50% in restricted shares6 delivered in one installment during
the current board period. Independent Board members do
not receive LTI or pension benefits.
Exhibit 14: Compensation framework: independent
Board members
Description
Board
membership
Regular Board work, including
offsites; client AGM; and other
Board-related work.
Compensation
CHF 100’000
Chair:
CHF +150’000
Member:
CHF +100’000
Chair:
CHF +100’000
Member:
CHF +50’000
Chair:
chaired by
executive
member
Member:
CHF +100’000
Member:
CHF +50’000
Dependent on
time allocation.
Guideline: for
each additional
~10% estimated
time allocation
CHF +100’000
Chair: Official RAC meetings
and several other, mainly
internal, meetings and travel,
including the preparation of
meeting materials; regular
calls; and Partners Group team
interaction.
Member: Additional Board
meetings, including the
preparation of meeting
materials; other additional
meetings; regular calls; and
team interaction.
Additional Board meetings,
including the preparation
of meeting materials; other
additional meetings; regular
calls; and team interaction.
Additional Board meetings,
including the preparation
of meeting materials; other
additional meetings; regular
calls; and team interaction.
Board meetings, including
standard board work, offsites;
client AGM; and other Board
related work.
Value creation and other PG-
related initiatives via specially
created committees.
RAC
NCC
IOC, COC,
SC1)
Larger
subsidiary
PG board
Ad-hoc
Board
committee
work
Waived fees
Consistent with industry standards, independent
Board members may also invest into Partners
Group’s investment programs on a no
management fee and no performance fee basis.
Waived fees claimed are shown in Exhibit 15.
1) The Strategy Committee (SC), Investment Oversight Committee (IOC) and the Client
Oversight Committee (COC) are not expected to be led by Independent Board
members.
6 Restricted shares have a five-year selling restriction as long as independent Board mem-
bers serve on the Board of Partners Group Holding AG. Should they not be re-elected the
selling restriction will be reduced to one year.
ANNUAL REPORT 2021 Compensation Report
3.2. Executive Chairman of the Board
The Chairman’s role requires a substantial time commitment
and significant involvement. Under the leadership of the
Executive Chairman Steffen Meister, the Board shapes the
strategy of the firm and exercises ultimate supervision over
management, amongst other duties. As chair of the Strategy
Committee, the Executive Chairman drives forward strategic
projects, business development, and corporate development
initiatives. He is also actively involved in the advancement of
client-related projects as a member of the Client Oversight
Committee. He is further responsible for the growth of the
next generation of leaders, together with the Executive
Team, to whom he acts as a coach and sounding board. The
Executive Chairman takes an active role in representing the
firm vis-à-vis regulators, key shareholders, investors, and
other important external stakeholders.
The Executive Chairman is paid an annual base Board fee of
CHF 0.30 million (2020: CHF 0.30 million). He received the
same LTI compensation factor as the overall Executive Team
(1.50x) and was granted LTIs amounting to CHF 1.91 million
(2020: CHF 1.28 million). This brings his total compensation
to CHF 2.27 million (2020: CHF 1.64 million), including
pension benefits as outlined in Exhibit 15.
3.3. Executive members of the Board
There are three additional executive members of the Board
of Directors, Dr. Marcel Erni, Alfred Gantner, and Urs
Wietlisbach, who are the founding partners of the firm. Each
of them plays an important role in determining the firm’s
business and corporate strategy via their respective Board
committees (see Corporate Governance report). None of the
executive members of the Board mentioned above have line
management functions.
The NCC assesses their contribution to each Board-level
committee throughout the year. Dr. Marcel Erni and Messrs.
Alfred Gantner and Urs Wietlisbach were each awarded an
annual base Board fee of CHF 0.30 million (2020: CHF 0.30
million). With regards to their LTI allocation, each member
was awarded an LTI grant of CHF 1.28 million (2020: CHF
0.85 million), entirely granted in MPP. This represents the
same compensation factor (1.50x) as the overall Executive
Team and the Executive Chairman of the Board and brings
the total compensation of Dr. Marcel Erni to CHF 1.64 million
(2020: CHF 1.22 million), Alfred Gantner to CHF 1.64 million
(2020: CHF 1.23 million) and Urs Wietlisbach to CHF 1.64
million (2020: CHF 1.22 million), including pension benefits as
outlined in Exhibit 15.
3.4. Independent members of the Board
The independent Board members who focused on Board-
and committee-related mandates at Partners Group are
Grace del Rosario-Castaño, Joseph P. Landy, and Dr. Martin
Strobel. Independent Board members spend a significant
amount of time contributing to several strategic board-level
initiatives. They have many formal and informal interactions
with management and employees across the firm on an
extensive range of matters and projects (e.g. vital strategic
growth projects, key client-related matters, legal, compliance,
audit, promotion considerations, leadership development,
operational excellence, etc.). Select independent Board
members hold board seats in Partners Group’s lead/ joint-
lead portfolio companies (see detailed overview in Partners
Group’s Corporate Governance Report 2021).
In 2021 there were three notable changes to the roster of
independent members of the Board. Dr. Eric Stutz retired
from the Board after serving for the maximum period of 10
years; his retirement was made effective on 12 May 2021.
Due to personal reasons, Lisa A. Hook stepped back from the
Board effective on 3 September 2021; she received pro-
rated compensation for her time served. Joseph P. Landy was
appointed to the Board at the Annual General Meeting of
Shareholders on 12 May 2021.
Following the step down of Lisa A. Hook, the Board of
Directors voted for Steffen Meister to join ad interim the Risk
& Audit Committee and Joseph P. Landy to join ad interim the
Risk & Audit Committee and the Nomination & Compensation
Committee until the next Annual General Meeting of
Shareholders in May 2022. The election of Steffen Meister to
the Risk & Audit Committee is temporary. The Board does not
foresee the election of any executive Board member to the
Risk & Audit Committee or the Nomination & Compensation
Committee after the next Annual General Meeting of
Shareholders in May 2022.
Grace del Rosario-Castaño was paid an annual base Board
fee of CHF 0.10 million. She additionally received CHF
0.10 million for chairing the NCC and CHF 0.10 million for
being a member of the Investment Oversight Committee.
Furthermore, she was entitled to CHF 0.05 million for her
work on the local board of Partners Group’s Manila entity.
This brings her total compensation to CHF 0.38 million,
including other compensation.
Joseph P. Landy was paid a base Board fee of CHF 0.10
million for time served from 12 May 2021. He additionally
received a compensation of CHF 0.10 million for being a
member of the Risk & Audit Committee and CHF 0.10 million
for being a member of the Client Oversight Committee.
Partners Group | 143
ANNUAL REPORT 2021 Compensation Report
Mr. Landy joined the NCC ad-interim until the next Annual
General Meeting of Shareholders in May 2022, a role he took
over from Ms. Hook effective 3 September 2021. For time
served on the NCC Mr. Landy received a prorated fee of CHF
0.02 million. Furthermore, Mr. Landy received a prorated fee
of CHF 0.03 million for ad-hoc board committee work. This
brings his total compensation to CHF 0.38 million, including
other compensation.
Dr. Martin Strobel acted as Vice Chairman and Lead
Independent Director and was paid an annual base Board
fee of CHF 0.10 million. Martin Strobel chaired the Risk &
Audit Committee effective from 12 May 2021, prior to which
he was a member, and he received a combined fee of CHF
0.13 million for his work on the Risk & Audit Committee.
He additionally received CHF 0.10 for being a member
of the Strategy Committee, CHF 0.05 million for being a
member of the NCC, and CHF 0.05 million for his work on
the local board of Partners Group’s UK entity. Furthermore,
he devoted additional time to Partners Group, providing
guidance on operational excellence matters globally. In his
ad-hoc Board committee work, Martin Strobel advises the
Technology Steering Committee and the firm’s “operational
excellence” program, amongst others. He received another
CHF 0.10 million for this special assignment. This brings
his total compensation to CHF 0.57 million, including other
compensation.
3.5. Loans to the Board (audited)
Members of the Board may apply for loans and fixed
advances, subject to an internal review and approval process.
Loans are made on substantially the same terms as those
granted to other employees. As of 31 December 2021, no
loans were outstanding to either current or former Board
members or to a related party of a current or former Board
member.
3.6. Board contracts (audited)
Contracts with members of the Board do not have special
provisions such as severance payments, “golden parachutes”,
reduced stock and/or options and MPP vesting periods etc.
in place in case of the departure of a Board member. Partners
Group did not make any such payments to current members
of the Board in 2020 and 2021.
144 | Partners Group
ANNUAL REPORT 2021 Compensation Report
Exhibit 15: Board compensation for the full-year 2021 (audited)
In thousands of Swiss francs
Steffen Meister, Executive Chairman
Dr. Martin Strobel, Vice Chairman
Dr. Marcel Erni
Alfred Gantner
Joseph P. Landy6)
Grace del Rosario-Castaño
Urs Wietlisbach
Total Board of Directors
Lisa A. Hook7)
Dr. Eric Strutz8)
Cash
Other1)
Subtotal
cash
compensation
300
275
300
300
175
175
300
56
22
61
61
27
27
63
356
297
361
361
202
202
363
1'825
317
2'142
109
54
9
4
118
59
Total Board of Directors incl. former members
1'988
331
2'319
Shares 2)
MPP3)
Total 4), 5)
2021
1'913
1'275
1'275
1'275
5'738
2'269
573
1'636
1'636
378
378
1'638
8'507
229
114
5'738
8'851
277
176
176
628
111
55
794
1) Other compensation: includes payments by Partners Group for pension and other benefits. In particular, the following Board members received pension benefits: Dr. Marcel Erni,
Alfred Gantner, Steffen Meister und Urs Wietlisbach. The remaining payments to the following members of the Board exclusively represent social security costs in relation to their other
compensation: Lisa A. Hook, Grace del Rosario-Castano, Joseph P. Landy, Dr. Martin Strobel and Dr. Eric Strutz.
2) Restricted shares were allocated on 18 November 2021 at a share price of CHF 1’627 per share. Restricted shares have a five-year selling restriction as long as independent Board
members serve on the Board of Partners Group Holding AG. Should they not be reelected the selling restriction will be reduced to one year. The number of shares allocated to each Board
member is as follows: Lisa A. Hook (68 shares), Grace del Rosario-Castano (108 shares), Joseph P. Landy (108 shares), Dr. Martin Strobel (170 shares) and Dr. Eric Strutz (34 shares).
3) The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2021 (note 4.3.2. to the consolidated financial statements).
4) Figures above exclude non-financial income (waived fees) for investments made alongside investors in Partners Group’s investment programs under the firm’s Employee Commitment
Program (see section 1.4 of this report). Including these accrued but not yet paid items the total compensation for the entire Board of Directors amounts to CHF 25’792 thousand, including
CHF 16’941 thousand for waived fees. The total waived fees received by the Board of Directors are listed below:
• Steffen Meister received a technical non-financial income stemming from waived fees amounting to CHF 64 thousand
• Dr. Marcel Erni received a technical non-financial income stemming from waived fees amounting to CHF 1’809 thousand
• Alfred Gantner received a technical non-financial income stemming from waived fees amounting to CHF 7’486 thousand
• Grace del Rosario-Castaño received a technical non-financial income stemming from waived fees amounting to CHF 1 thousand
• Dr. Martin Strobel received a technical non-financial income stemming from waived fees amounting to CHF 6 thousand
• Urs Wietlisbach received a technical non-financial income stemming from waived fees amounting to CHF 7’575 thousand
5) At the AGM in May 2021, shareholders approved the maximum total short-term cash compensation budget of CHF 3.00 million for the Board of Directors until the next ordinary annual
shareholders’ meeting in 2022. The budget includes cash base salary, shares in the value of the respective fees, pensions and other benefits and excludes social security payments. The
actual compensation, excluding social security in the amount of CHF 185 thousand, received in 2021 was in aggregate below the approved compensation budget.
6) Board member effective from the Annual General Meeting of shareholders on 12 May 2021.
7) Board member until 3 September 2021.
8) Board member until the Annual General Meeting of shareholders on 12 May 2021.
Partners Group | 145
ANNUAL REPORT 2021
Compensation Report
Exhibit 16: Board compensation for the full-year 2020 (audited)
In thousands of Swiss francs
Steffen Meister, Executive Chairman
Dr. Eric Strutz, Vice Chairman
Dr. Marcel Erni
Alfred Gantner
Lisa A. Hook
Grace del Rosario-Castaño
Dr. Martin Strobel
Urs Wietlisbach
Total Board of Directors
Michelle Felman5)
Patrick Ward5)
Cash
Other1)
Subtotal
cash
compensation
Shares2)
MPP3)
Total 4), 6)
2020
300
125
300
300
125
125
175
300
1'750
46
60
64
20
71
75
19
20
23
73
365
7
11
383
364
145
371
375
144
145
198
373
2'115
53
72
2'239
1'275
850
850
850
3'825
1'639
270
1'221
1'225
270
270
373
1'223
6'491
99
118
3'825
6'708
125
125
125
175
551
46
46
644
Total Board of Directors incl. former members
1'856
1) Other compensation: other compensation includes payments by Partners Group for pension and other benefits. In particular, the following Board members received pension benefits: Dr.
Marcel Erni, Alfred Gantner, Steffen Meister and Urs Wietlisbach. The remaining payments to the following members of the Board exclusively represent social security costs in relation to
their compensation: Lisa A. Hook, Grace del Rosario-Castano, Dr. Martin Strobel and Dr. Eric Strutz.
2) Restricted shares were allocated on 18 November 2020 at a share price of CHF 922 per share. Restricted shares have a five-year selling restriction as long as independent Board members
serve on the Board of Partners Group Holding AG. Should they not be reelected the selling restriction will be reduced to one year. The number of shares allocated to each Board member is
as follows: Lisa A. Hook (136 shares), Grace del Rosario-Castano (136 shares), Dr. Martin Strobel (190 shares) and Dr. Eric Strutz (136 shares).
3) The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2020 (note 4.3.2. to the consolidated financial statements).
4) Figures above exclude waived fees for investments made alongside investors in Partners Group’s investment programs under the firm’s Employee Commitment Program. Including these
accrued but not yet paid items the total compensation for the entire Board of Directors amounts to CHF 16’777 thousand, including CHF 10’069 thousand for waived fees. The total waived
fees received by the Board of Directors are listed below:
• Steffen Meister received a technical non-financial income stemming from waived fees amounting to CHF 96 thousand
• Dr. Marcel Erni received a technical non-financial income stemming from waived fees amounting to CHF 2’393 thousand
• Alfred Gantner received a technical non-financial income stemming from waived fees amounting to CHF 3’711 thousand
• Grace del Rosario-Castaño received a technical non-financial income stemming from waived fees amounting to CHF 2 thousand
• Dr. Martin Strobel received a technical non-financial income stemming from waived fees amounting to CHF 8 thousand
• Urs Wietlisbach received a technical non-financial income stemming from waived fees amounting to CHF 3’857 thousand
5) Board member until the Annual General Meeting of shareholders on 13 May 2020.
6) Total compensation of the Board, excluding LTIs and social security costs represents CHF 2.7 million and lies within the approved compensation budget of CHF 3.0 million at the 2020
AGM of shareholders in May.
146 | Partners Group
ANNUAL REPORT 2021
Compensation Report
Report of the Statutory Auditor
To the General Meeting of Partners Group Holding AG, Baar
We have audited the compensation report of Partners Group Holding AG for the year ended 31 December 2021.
The audit was limited to the information according to articles 14-16 of the Ordinance against Excessive
compensation in Stock Exchange Listed Companies contained in sections 2.7 to 2.8 and exhibits 12 to 13 on
pages 139 to 141 as well as sections 3.5 to 3.6 and exhibits 15 to 16 on pages 144 to 146 of the compensation
report.
Responsibility of the Board of Directors
The Board of Directors is responsible for the preparation and overall fair presentation of the compensation report
in accordance with Swiss law and the Ordinance against Excessive compensation in Stock Exchange Listed
Companies (Ordinance). The Board of Directors is also responsible for designing the remuneration system and
defining individual remuneration packages.
Auditor's Responsibility
Our responsibility is to express an opinion on the compensation report. We conducted our audit in accordance with
Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the compensation report complies with Swiss law
and articles 14 – 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the compensation
report with regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatements in the compensation report, whether due to fraud or error. This audit also includes evaluating the
reasonableness of the methods applied to value components of remuneration, as well as assessing the overall
presentation of the compensation report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Opinion
In our opinion, the compensation report for the year ended 31 December 2021 of Partners Group Holding AG
complies with Swiss law and articles 14 – 16 of the Ordinance.
KPMG AG
Thomas Dorst
Licensed Audit Expert
Auditor in Charge
Zurich, 18 March 2022
Malea Bourquin
Licensed Audit Expert
KPMG AG, Badenerstrasse 172, CH-8036 Zurich
© 2022 KPMG AG, a Swiss corporation, is a subsidiary of KPMG Holding AG, which is a member
of the KPMG global organization of independent member firms affiliated with KPMG International
Limited, a private English company limited by guarantee. All rights reserved.
Partners Group | 147
ANNUAL REPORT 2021
Partners Group has entities in various jurisdictions regulated
by, including but not limited to, the Swiss Financial Market
Supervisory Authority (FINMA), the U.S. Securities and
Exchange Commission (SEC), the United Kingdom Financial
Conduct Authority (FCA), the Monetary Authority of
Singapore (MAS), the Commission de Surveillance du
Secteur Financier (CSSF) and the Bundesanstalt für
Finanzdienstleistungsaufsicht (BaFin), which uphold the
requirements that these regulations imply. Partners Group
is committed to meeting high standards of corporate
governance, with the aim of guiding the firm to further
success. Partners Group prepares its Corporate Governance
Report according to the “Directive on Information relating to
Corporate Governance (including its annex)” issued by the SIX
Exchange Regulation and also takes into account the “Swiss
Code of Best Practice for Corporate Governance” issued by
economiesuisse.
The corporate governance section contains information on
Group structure
the following:
1. Group structure and shareholders
2. Capital structure
3. Board of Directors
4. Executive Team
5. Compensation, shareholdings, and loans
6. Shareholders’ participation rights
7. Changes of control and defense measures
8. Auditors
9.
Information policy
10. Quite periods
11. Non-applicability/negative disclosure
In this Corporate Governance Report, references to “Partners
Group”, the “firm”, the “company”, the “entity”, “we”, “us”
and “our” are to Partners Group Holding AG together with
its consolidated subsidiaries, unless the context requires
otherwise. Furthermore, the board of directors of Partners
Group Holding AG shall be referred to as “Board” or “Board of
Directors”.
Partners Group Holding AG
[Switzerland]
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group
(UK) Ltd.
[United Kingdom]
Partners Group
(Luxembourg) S.A.
[Luxembourg]
Partners Group
Advisors (DIFC)
Limited
[UAE]
Partners Group (EU)
GmbH
[Germany]
Partners Group (Brazil)
Investimentos Ltda.
[Brazil]
Partners Group
(Shanghai) Co., Ltd.
[China]
Partners Group
Colorado Propco, LLC1
[USA]
Partners Group
Property AG1
[Switzerland]
Partners Group
Investment
Services AG2
[Switzerland]
Partners Group AG
[Switzerland]
Partners Group
(USA) Inc.
[USA]
Operating
companies
100%
100%
100%
100%
100%
100%
Partners Group
Prime Services
Solutions (Philippines),
Inc.
[Philippines]
Partners Group
(Singapore) Pte. Ltd.
[Singapore]
Partners Group
Japan Kabushiki
Kaisha
[Japan]
Partners Group
Private Markets
(Australia) Pty. Ltd.
[Australia]
Partners Group
(Canada) Inc.
[Canada]
Partners Group
(India) Private
Limited
[India]
100%
Partners Group
(Guernsey) Ltd.
[Guernsey]
Other investment
management
companies
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group
Management
(Deutschland) GmbH
[Germany]
Partners Group (UK)
Management Ltd
[United Kingdom]
Partners Group Client
Access Management I
Limited
[Guernsey]
Princess
Management Limited
[Guernsey]
Partners Group
Management Limited
[Guernsey]
Partners Group
Management II
Limited
[Guernsey]
Partners Group
Management III
Limited
[Guernsey]
Partners Group
Management IV
Limited
[Guernsey]
Partners Group
Management V
Limited
[Guernsey]
Partners Group
Management
(Scotland) Ltd.
[Scotland]
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group US
Management LLC
[USA]
100%
Partners Group
Management VI
Limited
[Guernsey]
Partners Group
Management VII
Limited
[Guernsey]
Partners Group
Management VIII
Limited
[Guernsey]
Partners Group
Management IX
Limited
[Guernsey]
Partners Group
Management X
Limited
[Guernsey]
Partners Group
Management XI
Limited
[Guernsey]
Partners Group
Management XII
Limited
[Guernsey]
Partners Group
Management XIII
Limited
[Guernsey]
Partners Group
Management XIV
Limited
[Guernsey]
50%
Partners Group
Management
(Scots) LLP
[Scotland]
50%
Partners Group US
Management II LLC
[USA]
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group
Management XV
Limited
[Guernsey]
Partners Group
Management I
S.à r.l.
[Luxembourg]
Partners Group
Management II
S.à r.l.
[Luxembourg]
Partners Group
Management III
S.à r.l.
[Luxembourg]
Partners Group
Management IV (EUR)
S.à r.l.
[Luxembourg]
Partners Group
Management V (GBP)
S.à r.l.
[Luxembourg]
Partners Group
Management VI (USD)
S.à r.l.
[Luxembourg]
Partners Group Orbit
S.à r.l.
[Luxembourg]
Partners Group
Investment
Management S.à r.l.
[Luxembourg]
Partners Group
Management (Scots)
II LLP
[Scotland]
50%
50%
Partners Group US
Management III LLC
[USA]
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Partners Group
Cayman Management
I Limited
[Cayman Islands]
Partners Group
Cayman Management
II Limited
[Cayman Islands]
Partners Group
Cayman Management
III Limited
[Cayman Islands]
Partners Group
Cayman Management
IV Limited
[Cayman Islands]
Partners Group
Finance EUR IC
Limited
[Guernsey]
Partners Group
Finance USD IC
Limited
[Guernsey]
Partners Group
Finance GBP IC
Limited
[Guernsey]
Partners Group
Finance SGD IC
Limited
[Guernsey]
Partners Group
Finance CHF IC
Limited
[Guernsey]
50%
Partners Group
Management
(Guernsey) LLP
[Guernsey]
50%
Partners Group US
Management CLO
LLC
[USA]
100%
100%
100%
100%
Partners Group
Finance ICC Limited
[Guernsey]
Partners Group
Access Finance
Limited
[Guernsey]
Pearl Management
Limited
[Guernsey]
Partners Group Client
Access 10 MP
Management Limited
[Guernsey]
100%
Planeta Industries
S.A. Compartment
PGGLF Investment
Holdings
[Luxembourg]
40%
100%
28%
Special purpose
vehicles,
joint ventures,
investment
companies
LGT Private Equity
Advisers AG
[Liechtenstein]
Partners Group
Private Equity
Performance
Holding Limited
[Guernsey]
Pearl Holding Limited
[Guernsey]
100%
Partners Group US
Investment Services
LLC
[USA]
1 Formed for the purpose of purchasing, construction, maintenance or management of land and property (non-investment related)
2 Formed for the purpose of providing invoice handling, cash management, cost recharging and other related administrative services
Source: Partners Group, as of 10 February 2022. The purpose of the chart above is to provide an overview of the group structure of Partners Group Holding AG and its subsidiaries/affiliates.
The ownership percentages reflected in the chart are meant for illustrative purposes and are rounded.
1) Formed for the purpose of purchasing, construction, maintenance or management of land and property (non-investment related)
2) Formed for the purpose of providing invoice handling, cash management, cost recharging and other related administrative services
Source: Partners Group, as of 10 February 2022. The purpose of the chart above is to provide an overview of the group structure of Partners Group Holding AG and its subsidiaries/affilia-
tes. The ownership percentages reflected in the chart are meant for illustrative purposes and are rounded.
10 February 2022 16:27
148 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report 1. Group structure and
shareholders
1.1. Group structure
1.1.1. Description
Partners Group operates through majority or wholly
owned direct or indirect subsidiaries in Switzerland, the
United States, Luxembourg, Germany, the United Kingdom,
Guernsey, Singapore and other jurisdictions. The chart on the
previous page provides an overview of the group structure as
of 10 February 2022.
1.1.2. Listed companies belonging to the Group
Partners Group Holding AG is a stock corporation
incorporated under Swiss law with its registered office and
headquarters at Zugerstrasse 57, 6341 Baar-Zug. The shares
of Partners Group are listed pursuant to the International
Reporting Standard on the SIX Swiss Exchange AG under
the Valor number 2460882 and ISIN CH0024608827. The
market capitalization of the company as of 31 December
2021 was CHF 40.4 billion. All other group companies are
privately held.
1.1.3. Non-listed companies belonging to the Group
For more detailed information on the non-listed subsidiaries
of the group, including names, domiciles, share capital and
ownership interests, please see section 7 of the notes to
the financial statements of Partners Group Holding AG in
the Annual Report. For more detailed information on the
non-listed operating subsidiaries of the group, including
principal activity, place of incorporation, registered office and
ownership interests, please see note 17 to the consolidated
financial statements in the Annual Report 2021.
1.2. Significant shareholders
Partners Group has the following significant shareholders
holding over 3% of the shares and voting rights of Partners
Group Holding AG as of 7 March 2022.
The founding partners and largest shareholders of Partners
Group Holding AG, Dr. Marcel Erni and Messrs. Alfred
Gantner and Urs Wietlisbach (the “Founding Partners”),
each hold 1’338’959 shares in Partners Group Holding AG,
corresponding to 5.01% each of the total share capital of
Partners Group Holding AG.
In addition, on 9 August 2021, a group controlled by
BlackRock, Inc., 55 East 52nd Street, New York, NY 10055,
USA, disclosed an acquisition of shares resulting in a
shareholding of 1’339’857 shares, corresponding to 5.02% of
the total share capital.
As of 31 December 2021, Partners Group held 330’966
treasury shares, corresponding to 1.24% of the total share
capital.
All disclosures according to art. 120 of the Financial Market
Infrastructure Act (FMIA), including further details on the
lock-up group and organized group referred to above as
well as on option plans, can be found on the SIX Exchange
Regulation homepage: www.six-exchange-regulation.com/en/
home/publications/significant-shareholders.html.
1.3. Cross-shareholdings
Partners Group has no cross-shareholdings of 5% or more
with another company or group of companies.
Partners Group | 149
ANNUAL REPORT 2021Corporate Governance Report 2. Capital structure
2.1. Capital
The issued nominal share capital of Partners Group amounts
to CHF 267’000, divided into 26’700’000 fully paid-in
registered shares with a nominal value of CHF 0.01 each.
2.2. Authorized and conditional share capital
As of 31 December 2021, Partners Group has no authorized
share capital.
As of 31 December 2021, the following conditional share
capital is available to Partners Group’s Board of Directors: a
maximum amount of CHF 40’050 through the issuance of
no more than 4’005’000 registered shares, with restricted
transferability, that are to be fully paid-in and that have a
nominal value of CHF 0.01 each.
The right to subscribe to new shares as part of the
conditional share capital increase is granted to members of
the Board of Directors and employees of Partners Group
through the exercise of option rights (the “Beneficiaries”).
Subscription and pre-emptive rights of shareholders are
excluded for this conditional capital increase in favor of
the Beneficiaries. The Board of Directors will determine all
details of the terms of issue, such as the amount of issue,
date of dividend entitlement and kind of contribution, and will
establish the related equity investment plan. The acquisition
of the registered shares by exercising the option rights and
the further transfer of the shares are subject to the transfer
restrictions set forth in section 2.6 below.
2.3. Changes in capital
No changes in share capital have occurred during the last
three years.
2.4. Shares and participation certificates
Partners Group has issued 26’700’000 fully paid-in
registered shares with a nominal value of CHF 0.01 each
in accordance with our articles of association (available at
http://www.partnersgroup.com/articlesofassociation). The
shares have been issued in the form of book-entry securities.
Shareholders do not have the right to ask for printing,
emission or delivery of share certificates. Shareholders may,
however, request at any time that Partners Group issues an
attestation of their stock holding.
All shares have equal rights. Each share carries one vote at
shareholders’ meetings. Voting rights and certain other non-
economic rights attached to the shares, including the right to
call and to attend shareholders’ meetings, may be exercised
only after a shareholder has been registered in the share
register of Partners Group as a shareholder with voting rights.
All shares are entitled to full dividend payments.
Partners Group has not issued (non-voting) participation
certificates (Partizipationsscheine).
2.5. Dividend-right certificates
Partners Group has not issued any dividend-right certificates
(Genussscheine).
2.6. Transfer of shares, restrictions on transferability
and nominee registration
Share transfers, as well as the establishing of a usufruct (each
hereafter the “Share Transfer”), require the approval of the
Board of Directors of Partners Group Holding AG. A Share
Transfer may only be refused if the Share Transfer would
cause the shareholder to reach a shareholding exceeding 10%
of the total nominal share capital of Partners Group Holding
AG or if the shareholder does not expressly declare the
acquisition in their own name. Approval for Share Transfers
due to inheritance or matrimonial property law may not be
refused.
150 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report The Board of Directors may grant exceptions to this rule in
relation to the trading of shares, for example the recording
of persons holding shares in the name of third parties.
Nominees may be entered in the share register with voting
rights for a maximum of 5% of the total nominal share capital
and may be allowed to exceed this limit if they disclose the
names, addresses and shareholdings of the persons for
account of whom they are holding the shares. The Board
of Directors concludes agreements with such Nominees in
relation to disclosure requirements, representation of shares
and exercise of voting rights.
Share Transfers approved based on false representations of
the transferee may be revoked and the shareholder deleted
from the share register. A Share Transfer is deemed to have
been approved if it has not been declined within 20 days.
Amendments to the applicable transfer restrictions regime
requires shareholder approval with a quorum of at least two-
thirds of the represented votes and the absolute majority of
the represented nominal share capital.
During the financial year 2021, no exceptions to the
limitations on transferability and nominee registration
were granted.
For more details, please see articles 5 and 6
of our articles of association (available at
http://www.partnersgroup.com/articlesofassociation).
2.7. Bonds, convertible bonds and options
Partners Group currently has no convertible bonds
outstanding.
On 7 June 2017, Partners Group issued its first corporate
bond, raising CHF 300 million through a fixed-rate senior
unsecured CHF-denominated issue (ISIN: CH0361532895).
The bond was issued with a seven-year term and a coupon
of 0.15% and matures on 7 June 2024. On 21 June 2019,
Partners Group issued its second corporate bond, raising
CHF 500 million through a fixed-rate senior unsecured
CHF-denominated issue (ISIN: CH0419041287). The bond
was issued with an eight-year term and a coupon of 0.40%
and matures on 21 June 2027. Please see note 13 to the
consolidated financial statements in the Annual Report 2021
for comprehensive information on the bonds issued by the
firm.
Since 30 June 2000, Partners Group has established
regular share and option programs that entitle management
personnel and a large number of employees to purchase and/
or hold shares in the entity. The options can be settled either
by the issuance of shares out of conditional share capital or
by the delivery of existing shares (treasury shares). Please see
note 4 to the consolidated financial statements in the Annual
Report 2021 for comprehensive information on the share and
option program of the firm.
Partners Group has not issued any further options or
warrants.
Partners Group | 151
ANNUAL REPORT 2021Corporate Governance Report 3. Board of Directors
Partners Group’s Board Governance
Partners Group’s Board of Directors is entrusted with the
ultimate responsibility for Partners Group’s strategy and
development. The Board applies the same “entrepreneurial
governance” approach to its own firm as Partners Group
applies to its portfolio companies.
The Board consists of executive Board members - the
Executive Chairman and the three founders - and
independent Board members. None of the directors of the
Board have line management functions.
Through the Board’s committees, Board members contribute
to investment - as well as client-related activities and
corporate development initiatives. The Chairman also
oversees the global Executive Team in leading the operations
and execution of the strategy.
The Executive Chairman typically invests 3-5 days a week
towards his mandate. The founders dedicate approximately
2-3 days a week to Partners Group’s Board activities.
Independent Board members devote 1-2 days a week to their
Board mandates.
The substantial time commitment of Partners Group’s Board
is the foundation of a successful governance model geared
towards enabling proactive value creation.
As of 31 December 2021, the Board of Directors consists
of seven members. All members were elected at the annual
general meeting of shareholders (“Annual General Meeting”)
2021 for a one-year tenure with the possibility of re-election.
The table below shows the current composition of the Board of Directors and Committee membership (for further details and
allocation of tasks see section 3.5. below):
Independent
Director***
Strategy
Committee*
Investment
Oversight
Committee
Client Oversight
Committee
Risk & Audit
Committee
Nomination &
Compensation
Committee
**
**
Name
Steffen Meister, Chairman
Dr. Martin Strobel
Dr. Marcel Erni
Alfred Gantner
Joseph P. Landy
Grace del Rosario-Castaño1)
Urs Wietlisbach
Member
Chair
Lead Independent Director
Note: next to the committees mentioned above, the Crisis Committee has the following members: Steffen Meister (Chairman), Dr. Martin Strobel and Alfred Gantner.
1) Grace del Rosario-Castaño will retire from the Board of Directors as of 25 May 2022.
*
As of 1 January 2022, the Strategy Committee will be renamed to “Corporate Development Committee”; members of the Corporate Development Committee are Steffen Meister and Dr. Martin
Strobel.
Following the step down of Lisa A. Hook as of 3 September 2021, the Board of Directors voted for Steffen Meister to join ad interim the Risk & Audit Committee and Joseph P. Landy to join
ad interim the Nomination & Compensation Committee until the next Annual General Meeting of shareholders in May 2022. The election of Steffen Meister to the Risk & Audit Committee
is temporary. The Board does not foresee the election of any non-independent Board members to the Risk & Audit Committee or the Nomination & Compensation Committee after the next
Annual General Meeting of shareholders.
**
*** On 9 March 2022, Partners Group announced changes and nominations to the composition of its Board of Directors and related committees, which will be proposed at the next Annual
General Meeting of shareholders on 25 May 2022. Anne Lester will be nominated for election as a new independent member of the Board and as a member of the Risk & Audit Committee, the
Nomination & Compensation Committee and the Client Oversight Committee. Also nominated for election as a new independent member of the Board will be Flora Zhao. She will be nominated
as a member of the Nomination & Compensation Committee and the Investment Oversight Committee.
152 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report
All Board members exhibit:
•
Strong alignment with shareholders
• High integrity
• Deeply active engagement with focus on value
creation
•
Strong board leadership skills in shaping and
directing strategy
• Bias towards trusted, long-term relationships
• Knowledge of corporate governance requirements
• A commitment to the long-term success of Partners
and practices
Group
• A proven record of success
• A commitment to sustainability and corporate
responsibility extending beyond our direct
stakeholders
Our Board members exhibit an effective and broad mix of skills, experience and diversity
43%1)
>10 years
14%
≤2 years
29%
60-65 years
43%
50-55 years
Average
tenure
13.6
years
29%
3-5 years
Average
age
56.1
years
14%
6-10 years
1) Including the Founding Partners.
Gender
diversity
14%
women
29%
56-59 years
13%
German
13%
Filipina
4
different
nationalities2)
63%
Swiss
13%
US American
Due to rounding, numbers presented may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
2) Graph takes into account board members with double nationalities.
7
Private markets industry know-how1)
4
Risk management experience3)
7
Broad international exposure5)
6
C-level experience2)
5
Operational experience4)
6
Investment experience6)
1) Have had at least 5 years of experience in the private markets industry
2) Have had at least 5 years of C-level experience
3) Have had at least 5 years of involvement in risk management activities
4) Have had at least 5 years of operational experience (through line or general management roles that included profit and loss responsibility)
5) Have had at least 10 years of international business exposure
6) Have had at least 10 years of investment management experience
7) Based on the PG Board Diversity objectives, the Board has established a target of ensuring that the proportion of newly elected independent directors is comprised of at
least 50 percent of the following groups on a three-year rolling-basis: (1) persons identifying other than (cis-)male, (2) persons from the LGBT+ community, or (3) persons
from under-represented ethnic minority groups. With the departure of Lisa A. Hook on 3 September 2021, the proportion of women on the Board of Directors temporarily
decreased. On 9 March 2022, the Board of Directors nominated Ms. Anne Lester and Ms. Flora Zhao as independent members of the Board of Directors of Partners Group
Holding AG, which will be proposed at the next Annual General Meeting of shareholders on 25 May 2022.
Partners Group | 153
ANNUAL REPORT 2021Corporate Governance Report 3.1. Members of the Board of Directors
Independent members of the Board may not:
All members of the Board of Directors of Partners Group
Holding AG are also members of the Board of Directors
of Partners Group AG, a 100% privately held subsidiary of
Partners Group Holding AG. Select members of the Board of
Directors of Partners Group Holding AG are also members
of the Board of Directors of other operating entities of the
group, such as group entities in the UK and the Philippines.
The following provides information on the independence
criteria for members of the Board of Directors and on the
professional history and education of each such member,
including other significant activities in governing and
supervisory bodies of important financial organizations,
institutions and foundations under private and public law,
permanent management and consultancy functions for
important Swiss and foreign interest groups, official functions
and political posts.
Independence statement for members of the Board
Best practice in corporate governance calls for the
independence of selected Board members as an important
element of its quality and integrity. However, codes of best
practice, regulators and proxy advisors tend to use different
criteria and no globally accepted standard has yet emerged.
Having reviewed a series of possible criteria from different
sources, ranging from financial market authorities, other
stock exchanges and codes of best practice to foundations
and independent asset managers with a focus on sustainable
corporate development, Partners Group recognizes
differences in the definition of Board member independence.
Partners Group follows the general corporate governance
principle of “comply or explain” and therefore applies the
following criteria to evaluate the independence of its Board
members.
First and foremost, when searching for an external
independent member of the Board, Partners Group looks
for accomplished, distinctive and competent personalities
who are respected based on their achievements. Moreover,
they are selected based on their ability to contribute relevant
professional skills, commit substantial capacity and add to the
diversity of the Board in terms of background and unbiased
perspectives. In our view, these selection criteria represent
the essence of true independence.
In addition, Partners Group applies several formal criteria for
Board member independence.
•
•
have a line management function (i.e. positions with
substantial decision-making authority) for Partners
Group, or any of its affiliates, currently or in the three
years prior to their appointment;
be employed or otherwise affiliated with our statutory
auditors, currently or in the three years prior to their
appointment;
•
have an overall tenure of more than ten years.
Partners Group also applies the following additional criteria to
independent Board members, whereby the materiality of such
criteria is evaluated on a case-by-case basis:
•
•
limited financial dependence on Partners Group in terms
of employment, income and shareholding relative to their
individual overall situation; and
no material direct or indirect business relationship with
Partners Group or any of its affiliates (except as an
investor in Partners Group products).
As a result of this evaluation process (which is reviewed
annually) we consider the following current Board members
as independent: Dr. Martin Strobel (Lead Independent
Director), Joseph P. Landy and Grace del Rosario-Castaño.
With the departure of Lisa A. Hook on 3 September 2021,
the number of independent members of the Board of
Directors temporarily decreased.
Neither of the independent Board members, nor any of
their close family members, have ever been members of
the senior executive management of Partners Group, nor
any of its subsidiaries, nor do they have any significant
business connections with either Partners Group or one of
its subsidiaries. None of the independent Board members
exercise any official functions or hold a political post, nor do
they have any permanent management/consultancy functions
for significant domestic and foreign interest groups.
Lead Independent Director
Dr. Martin Strobel is the firm’s Lead Independent Director.
The Lead Independent Director is an independent Board
member with the main mandate to coordinate and align the
views of independent Board members in case of fundamental
disagreements and conflicts with non-independent, executive
Board members. The Lead Independent Director is elected
by the Board for a term of office of typically one year. Re-
election is possible.
154 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report History and education of each member of the Board of Directors, including their responsibilities and other activities and
functions1)
Steffen Meister
• Director since: 2013
• Age: 51
• Nationality: Swiss
• Board Committees: Strategy Committee (Chairman), Client Oversight Committee, Risk & Audit
Committee (ad-interim)
• Other board mandates: Crossiety AG (Co-Founder and Chairman), FAIRTIQ AG
• Board mandates at Partners Group’s portfolio companies: Hearthside Food Solutions
Steffen Meister is a Partner of the firm and Executive Chairman of the Board of Directors of Partners
Group Holding AG, based in Zug. Steffen Meister has been with Partners Group since 2000 and
served as Delegate of the Board from 2013 to 2018 and as Chief Executive Officer from 2005 to
2013. Prior to joining Partners Group, he worked at Credit Suisse Financial Products and had part-
time assignments at Swiss Reinsurance Co. and the Department of Mathematics of the Swiss Federal
Institute of Technology (ETH) in Zurich. He has 26 years of industry experience and holds a master’s
degree in mathematics from the Swiss Federal Institute of Technology (ETH), Switzerland.
Key qualifications and skills
Private markets industry
know-how
C-level experience
Risk management experience
Operational experience
Broad international exposure
Investment experience
Dr. Marcel Erni
• Director since: 1997
• Age: 56
• Nationality: Swiss
• Board Committees: Investment Oversight Committee
• Other board mandates: PG3 AG, Kompass Association (Board of Trustees member)
• Board mandates at Partners Group’s portfolio companies: AMMEGA, Global Blue, Telepass
Dr. Marcel Erni co-founded Partners Group in 1996. He is a Partner of the firm and an executive
member of Partners Group Holding AG’s Board of Directors, based in Zug. Previously, he served as
the Chief Investment Officer of Partners Group until June 2017. Prior to founding Partners Group, he
worked at Goldman Sachs & Co. and McKinsey & Co. He has over 30 of industry experience and holds
an MBA from the University of Chicago Booth School of Business, Illinois and a PhD in finance and
banking from the University of St. Gallen (HSG), Switzerland.
Key qualifications and skills
Private markets industry
know-how
Investment experience
C-level experience
Broad international exposure
1) Partners Group representatives are a member of the board of a Partners Group portfolio company or a number of special purpose vehicles (SPV) established in connection with the
respective investment.
Partners Group | 155
ANNUAL REPORT 2021Corporate Governance Report Alfred Gantner
• Director since: 1997
• Age: 53
• Nationality: Swiss
• Board Committees: Strategy Committee, Investment Oversight Committee (Chair)
• Other board mandates: PG3 AG, Kompass Association (Board of Trustees member)
• Board mandates at Partners Group’s portfolio companies: Confluent Health, Fermaca, Breitling
Alfred Gantner co-founded Partners Group in 1996. He is a Partner of the firm and an executive
member of Partners Group Holding AG’s Board of Directors, based in Zug. Previously, Alfred Gantner
served as Chief Executive Officer of Partners Group from 1996 to 2005 and subsequently as
Executive Chairman from 2005 to 2014. He was also Chairman of Partners Group’s Global Investment
Committee from 2011 until June 2017. Furthermore, he has served as a board member at various
Partners Group portfolio companies such as Careismatic Brands, Universal Security, VAT, USIC and
PCI Pharma Services. Prior to founding Partners Group, he worked at Goldman Sachs & Co. He has
over 30 years of industry experience and holds an MBA from the Brigham Young University Marriott
School of Management in Utah, USA.
Key qualifications and skills
Private markets industry
know-how
C-level experience
Risk management experience
Operational experience
Broad international exposure
Investment experience
Joseph P. Landy
• Director since: 2021
• Age: 60
• Nationality: US American
• Board Committees: Client Oversight Committee, Risk & Audit Committee, Nomination &
Compensation Committee (ad-interim)
• Other board mandates: New York University (Board of Trustees member), National Park
Foundation
Joseph P. Landy is an independent member of the Board of Directors of Partners Group Holding AG.
He is a former Co-Chief Executive Officer of Warburg Pincus, and has been involved in the private
equity industry since 1985. During his tenure, Mr. Landy was jointly responsible for the management
of the firm for over 20 years, including the formulation of strategy, oversight of investment policy
and decisions, leadership of the firm’s Executive Management Group and the coordination of
limited partner relationships. Mr. Landy’s principal areas of investment focus have been information
technology, Internet applications and infrastructure, communications applications and structured
investments. Mr. Landy holds a B.S. degree in Economics from The Wharton School at the University
of Pennsylvania and an M.B.A. from The Leonard N. Stern School of Business at New York University.
Key qualifications and skills
Private markets industry
know-how
C-level experience
Risk management experience
Operational experience
Broad international exposure
Investment experience
156 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report Grace del Rosario-Castaño
• Director since: 2015
• Age: 58
• Nationality: Filipina
• Board Committees: Investment Oversight Committee, Nomination & Compensation Committee
(Chairwoman)
• Board mandates at Partners Group’s portfolio companies: BCR Group
Grace del Rosario-Castaño is an independent member of the Board of Directors of Partners Group
Holding AG. She spent 22 years at Johnson & Johnson, joining in 1990 as Brand Manager and ending
her tenure as Company Group Chairwoman, Asia-Pacific, in July 2014. In that role, Grace del Rosario-
Castaño was responsible for all markets in the Asia-Pacific region. In her early years at Johnson &
Johnson, she worked for the Consumer Products Worldwide division in the United States. Prior to
joining Johnson and Johnson, Grace del Rosario-Castaño spent the formative years of her career
with Unilever. She graduated magna cum laude with a degree in Bachelor of Science in Business
Administration from the University of the Philippines. She has also completed the Senior Management
Programs at the Asian Institute of Management, Smith-Tuck Global Leadership For Women, at the
Tuck School of Business in Hanover, New Hampshire and the Advanced Management Program at the
University of California in Berkeley, USA.
Key qualifications and skills
Private markets industry
know-how
Broad international exposure
Dr. Martin Strobel
C-level experience
Operational experience
• Director since: 2019
• Age: 55
• Nationality: German/Swiss
• Board Committees: Strategy Committee, Risk & Audit Committee (Chairman), Nomination &
Compensation Committee
• Other board mandates: Aviva plc, msg life AG
Dr. Martin Strobel is the Vice Chairman and Lead Independent Director of the Board of Directors of
Partners Group Holding AG. Dr. Martin Strobel’s background is in technology and he gained a PhD in
business computer science while beginning his career as a consultant at The Boston Consulting Group.
He subsequently joined the Swiss insurer Baloise Group to oversee technology, before ultimately
spending seven years of his 17-year tenure there as Group CEO. After leaving Baloise Group in April
2016, Dr. Martin Strobel spent almost three years as an operating partner at private equity firm
Advent International.
Key qualifications and skills
Private markets industry
know-how
C-level experience
Risk management experience
Operational experience
Broad international exposure
Investment experience
Partners Group | 157
ANNUAL REPORT 2021Corporate Governance Report Urs Wietlisbach
• Director since: 1997
• Age: 60
• Nationality: Swiss
• Board Committees: Client Oversight Committee (Chairman) )
• Other board mandates: Blue Earth Capital (Chairman), Blue Earth Foundation, Entrepreneur
Partners AG, PG3 AG, Kompass Association (Board of Trustees member)
• Board mandates at Partners Group’s portfolio companies: KR Group (Board observer)
Urs Wietlisbach co-founded Partners Group in 1996. He is a Partner of the firm and an executive
member of Partners Group Holding AG’s Board of Directors, based in Zug. Prior to founding Partners
Group, he worked at Goldman Sachs & Co. and Credit Suisse. He has over 30 years of industry
experience and holds a master’s degree in business administration from the University of St. Gallen
(HSG), Switzerland.
Key qualifications and skills
Private markets industry
know-how
Broad international exposure
Investment experience
158 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report Organizational changes to the Board of Directors
Lisa A. Hook, an independent member of the Board of
Directors of Partners Group Holding AG, has stepped back
from the Board with effect from 3 September 2021 for
personal reasons. Joseph P. Landy, also an independent
member of the Board of Directors of Partners Group Holding
AG, has taken over Ms. Hook’s Nomination & Compensation
Committee responsibilities ad-interim until the next Annual
General Meeting of shareholders in May 2022. Steffen
Meister has taken over Ms. Hook’s Risk & Audit Committee
responsibilities ad-interim until the next Annual General
Meeting of shareholders in May 2022. The election of
Steffen Meister to the Risk & Audit Committee is temporary
and the Board does not foresee the election of any non-
independent Board members to the Committee after the next
Annual General Meeting of shareholders.
On 9 March 2022, Partners Group, a leading global private
markets firm, today announces amendments and nominations
regarding the composition of its Board of Directors and
related committees, which will be proposed at the next
Annual General Meeting of shareholders on 25 May 2022.
Anne Lester will be nominated for election as a new
independent member of the Board and as a member of the
Risk & Audit Committee, the Nomination & Compensation
Committee and the Client Oversight Committee. Through
her Board committee assignments, in particular the Client
Oversight Committee, Ms. Lester would dedicate her time to
further drive the firm’s bespoke private markets solutions for
the Defined Contribution pensions market.
Also nominated for election as a new independent member
of the Board will be Flora Zhao. She will be nominated as
a member of the Nomination & Compensation Committee
and the Investment Oversight Committee. Through her
Board committee assignment on the Investment Oversight
Committee, Ms. Zhao would drive forward Partners
Group’s transformational investment approach and
contribute to strategic Board-level initiatives, with a focus
on entrepreneurial governance for the benefit of the firm’s
portfolio companies, especially in Asia and in infrastructure
related assets.
Joseph P. Landy, an independent member of the Board
of Directors, will again be nominated for election. Upon
his election, he will remain a member of the Risk & Audit
Committee and will newly become a member of the
Investment Oversight Committee.
Grace del Rosario-Castaño, an independent member of
the Board of Directors of Partners Group Holding AG, will
step down from the Board with effect from 25 May 2022
after serving for eight years on the Board of Partners Group
Holding AG.
3.2. Other activities and vested interests
Please see note 3.1. above.
3.3. Ordinance against excessive compensation in
listed joint stock companies – Number of mandates
pursuant to the OaEC
In accordance with art. 12 para. 1 of the OaEC and art. 25 of
the articles of association, each Board member may assume
a maximum of nine additional mandates in companies that
pursue an economic purpose, which includes a maximum of
three additional mandates in listed companies. The following
mandates are exempt from this limitation: mandates in legal
entities controlled by Partners Group Holding AG; mandates
that are carried out on behalf of, or as directed by, the
company or any of its controlled companies in legal entities
that are not part of the group, whereby each Board member
may hold a maximum of ten such mandates; mandates in
associations, non-profit organizations, foundations, trusts,
and employee pension foundations, whereby each Board
member may hold a maximum of ten such mandates; and
mandates in legal entities serving the sole purpose of
managing their own private assets, whereby each member
Board member may hold a maximum of ten such mandates.
3.4. Elections and terms of office, succession
planning, qualifications and diversity
Elections and terms of office
The Board of Directors must consist of at least three
members. All members, including the Chairman of the
Board of Directors, are to be elected individually at the
shareholders’ meeting, for a term of one year in accordance
with the OaEC. Re-election is possible. The tenure for
independent board members is limited to a maximum of
ten years. There are no rules in the articles of association
that differ from the statutory legal provisions with regard
to the appointment of the Chairman, the members of the
compensation committee and the independent proxy.
Partners Group | 159
ANNUAL REPORT 2021Corporate Governance Report Succession planning
Diversity of perspectives and experience
Succession planning is of significant importance to the Board
of Directors. The Nomination and Compensation Committee
supports the Chairman of the Board in the review and
assessment of newly appointed directors. The Nomination
and Compensation Committee together with the Chairman
of the Board will oversee the development of a diverse
succession pipeline for the Board. They regularly analyse
its composition to confirm that its members’ qualifications,
skills and experience correspond to the Board’s needs and
requirements. The Board of Directors initiates the evaluation
of potential new Board members in a timely manner with the
aim of continuing to ensure its members have the desired
qualifications and experience, as well as to further diversify
and renew its composition.
The Board of Directors nominates candidates for Board
membership for election at the Annual General Meeting,
ensuring that the Board retains an adequate size and
well-balanced composition. All Board appointments and
succession plans are based on merit and objective criteria,
in the context of the skills, experience, independence and
knowledge which the Board requires to be effective.
Qualifications
The Board of Directors needs to secure the necessary
qualifications, skills and diversity to perform all required
responsibilities. The Board must assemble among its members
the balance of managerial expertise and knowledge from
different fields required for the fulfilment of its oversight
responsibility as well as for sound, independent decision-
making in line with the needs of the business. The Board
defines the selection criteria against which candidates for
Board membership are assessed. The requirements that
potential Board members have to meet in terms of knowledge
in various key areas and the industry are constantly
increasing. The Board design leans towards the strategic
value drivers and needs of the organization. That said,
The Board applies the same “entrepreneurial governance”
approach to its own firm as Partners Group applies to its
portfolio companies
Membership on the Board of Directors requires skills or
knowledge of matters such as private markets know-how,
investment management, risk management and/or operational
experience (through line or general management roles that
included profit and loss responsibility) as well as leadership
and decision-making experience in large, complex institutions
or having had broad international exposure.
160 | Partners Group
A central pillar of our diversity policy is our conviction that
diversity of perspectives and experience will ultimately lead
to better results by the Board of Directors. As such, as we
have spelled out in our diversity policy, Partners Group
recognizes and embraces the benefits of having a Board
that is adequately staffed with diverse and accretive skills to
drive strategy and support value creation initiatives. A truly
diverse Board will include and make good use of differences
in the technical know-how, regional and industry experience,
social and ethnic background, race, gender, as well as other
distinctions between directors, such as cognitive and personal
strengths (the “PG Board Diversity”).
The Nomination and Compensation Committee will discuss
and agree annually on measurable objectives for achieving
the PG Board Diversity mentioned above and recommend
them to the Board for adoption. At any given time, the Board
may seek to improve one or more aspects of the objectives of
the PG Board Diversity.
Based on the PG Board Diversity objectives, the Board has
established a target of ensuring that the proportion of newly
elected independent directors is comprised of at least 50
percent of the following groups on a three-year rolling-basis:
•
•
•
persons identifying other than (cis-)male,
persons from the LGBT+ community, or
persons from under-represented ethnic minority groups
While this target is maintained going forward, the Board
recognizes that periods of change in the Board composition
may result in temporary periods when this balance is not
achieved.
Partners Group’s Board Diversity Policy is available for
download on the website at https://www.partnersgroup.com/
en/about/corporate-governance/policies-directives.
3.5. Internal organizational structure
The Board of Directors has adopted written internal
organizational regulations for the management of the
company and of its subsidiaries pursuant to art. 716b of the
Swiss Code of Obligations, the rules of the SIX Exchange
Regulation, the company’s articles of association and the
Swiss Federal Act on Collective Investment Schemes.
The Board of Directors has ultimate responsibility for the
management of Partners Group. Please see page 152 for the
Board composition as well as section 3.1 for information on
the allocation of tasks within the Board of Directors.
ANNUAL REPORT 2021Corporate Governance Report During the first Board meeting following the Annual General
Meeting of shareholders, the Board of Directors appoints its
secretary, who does not need to be a member of the Board of
Directors. The Board of Directors meets as often as business
requires, but no less than four times a year as set forth in the
company’s Rules of the Organization and of Operations (the
“ROO”; Organisationsreglement); in 2021, five formal meetings
were held (2020: four), which lasted between three and eight
hours each. The majority of all Board members were present
at all meetings. The meetings of the Board of Directors were
also attended by relevant non-members of the Board of
Directors who hold key functions or responsibilities within
the company. The formal meetings were complemented
by regular and considerable informal interactions with
management and employees across the firm.
The Board of Directors can deliberate if the majority of its
members are present. Resolutions are adopted with the
majority of the votes of the members present. In the event
of a tie, the Chairman casts the deciding vote. Resolutions by
circular letter require the absolute majority of all members of
the Board of Directors unless higher quorums are provided
by applicable provisions.
The Board of Directors has established further committees
to promulgate and monitor related directives and policies: the
Risk & Audit Committee, the Nomination & Compensation
Committee, the Strategy Committee, the Client Oversight
Committee, the Investment Oversight Committee and the
Crisis Committee. Each committee advises the Board of
Directors on the matters specified below, often with the
assistance of the Executive Team and others involved in
the management of Partners Group. The members and
Chairs of these committees are determined by the Board
of Directors, apart from the members of the Nomination &
Compensation Committee who are elected individually at the
Annual General Meeting for a term of one year in accordance
with the OaEC. Please see the table at the beginning of this
section for the composition of these committees.
Meetings can be called by each committee member or by the
Chairperson. In order for resolutions or motions to be validly
taken or made, the majority of the committee members
must attend the meeting (in person or, if need be, via phone/
video conference). All resolutions or motions must be passed
unanimously, otherwise the business activities will be re-
assigned to the Board. Quorums and motions may also be
passed by circular resolutions.
Risk & Audit Committee (“RAC”)
The RAC is in charge of ensuring the diligent performance of
internal and external auditing as well as financial controlling in
addition to performing other tasks related to risk management
such as (i) finance risk oversight, (ii) operational risk oversight
and (iii) regulatory, legal and conduct risk oversight. In
particular, the RAC (i) approves internal audit’s organization
and tasks, (ii) orders the performance of specific audits, (iii)
supervises internal audit’s activities, (iv) ensures the execution
of the external audit, (v) monitors the financial review
processes and (vi) ensures the review of the management and
internal control processes. Furthermore, the RAC oversees
the company’s information security strategy. At least once
a year, the RAC is informed by senior management on
information security and cyber security topics within and
outside the firm. The role of the RAC is primarily supervisory
and its decision-making authority is limited to those areas
which are ancillary to its supervisory role (see also section
3.7.1.2). Subject to limitations provided under the law and
the articles of association, the RAC is presided over by an
independent Board member. Until 12 May 2021, the members
of the RAC were Dr. Eric Strutz (Chair), Lisa A. Hook and Dr.
Martin Strobel. As of 12 May 2021 until 3 September 2021,
the members of the RAC were Dr. Martin Strobel (Chair),
Lisa A. Hook and Joseph P. Landy. As of 3 September 2021,
the members of the RAC are Dr. Martin Strobel (Chair) and
Joseph P. Landy. Steffen Meister has taken over Ms. Hook’s
Risk & Audit Committee responsibilities ad-interim until the
next Annual General Meeting of shareholders in May 2022.
The election of Steffen Meister to the Risk & Audit Committee
is temporary and the Board does not foresee the election of
any non-independent Board members to the Committee after
the next Annual General Meeting of shareholders. The RAC
held five formal meetings in 2021 (2020: five), which lasted
approximately two to four hours each. In addition, the external
auditors attended four meetings (except the one ad-hoc
meeting) of the RAC in 2021. The majority of all committee
members were present at all meetings. The meetings of the
RAC may be also attended by other non-voting members
of the Board of Directors and relevant non-members of the
Board of Directors who hold key functions or responsibilities
within the firm. The formal meetings were complemented
by regular and considerable informal interactions with
management and employees across the firm on legal,
compliance and audit-related matters or projects.
Nomination & Compensation Committee (“NCC”)
The NCC advises and supports the Board of Directors
in particular with regard to the determination of the
compensation system and principles. The NCC also supports
Partners Group | 161
ANNUAL REPORT 2021Corporate Governance Report the Chairman with regard to the nomination of members of
the Board of Directors and the promotion of executive officers
of the company or its controlled companies, as applicable.
It assesses the compensation proposals for the company or
its controlled companies with regard to compliance with the
determined principles. It also prepares the Compensation
Report and the motions on the Board of Directors’ and
executive management’s compensation to be submitted to
the shareholders’ meeting. The Board of Directors may assign
further tasks, responsibilities and powers in compensation and
nomination matters to the NCC. Subject to limitations provided
under the law and the articles of association, the NCC is
presided over by an independent Board member.
Until 3 September 2021, the members of the NCC were Grace
del Rosario-Castaño (Chair), Lisa A. Hook and Dr. Martin
Strobel. As of 3 September 2021, the members of the NCC
are Grace del Rosario-Castaño (Chair) and Dr. Martin Strobel.
Joseph P. Landy, also an independent member of the Board of
Directors of Partners Group Holding AG, has taken over Ms.
Hook’s Nomination & Compensation Committee responsibilities
ad-interim until the next Annual General Meeting of
shareholders in May 2022. The NCC held two formal meetings
in 2021 (2020: two), which lasted approximately two to
three hours each, to discuss the annual compensation for
the Board of Directors and the Executive Team as well as
to confirm the overall compensation policy. All committee
members were present at all meetings. The meetings of the
NCC were also attended by other non-voting members of the
Board of Directors and relevant non-members of the Board
of Directors who hold key functions or responsibilities within
the firm. The formal meetings were complemented by regular
and considerable informal interactions with management and
employees across the firm on promotion considerations and
leadership development projects.
Strategy Committee (“SC”)
The SC directs the firm’s major strategic initiatives and
advises the Board of Directors on, in particular, major
business, corporate and organizational initiatives. It further
oversees fundamental initiatives in terms of the firm’s human
capital development, financial planning and use of financial
resources. As of the 31 December 2021, the members of
the SC are Steffen Meister (Chair), Alfred Gantner and Dr.
Martin Strobel. The SC held five formal meetings in 2021
(2020: nine), each of which lasted approximately four to six
hours. The majority of all meetings were attended by all SC
members. The meetings of the SC were also attended by
other non-voting members of the Board of Directors and
relevant non-members of the Board of Directors who hold
162 | Partners Group
key functions or responsibilities within the firm. The formal
SC meetings were complemented by regular and considerable
informal interactions with management and employees across
the firm to implement key strategic growth projects. As of
1 January 2022, the Strategy Committee was renamed to
Corporate Development Committee (“CDC”). Members of the
CDC are Steffen Meister and Dr. Martin Strobel. The CDC
will meet on a monthly basis together with the Executive
Team to discuss major corporate and organizational initiatives.
Client Oversight Committee (“COC”)
The COC coordinates global marketing and (key) client
activities, drives strategic fundraising initiatives and identifies
new key product and fundraising themes. In addition, it
oversees the coverage of the firm’s key client prospects, the
global consultant network, the firm’s global public relations
strategy as well as its advisory network. Until 12 May 2021,
the members of the COC were Urs Wietlisbach (Chair) and
Steffen Meister. As of 12 May 2021, the members of the
COC are Urs Wietlisbach (Chair), Joseph P. Landy and Steffen
Meister. Furthermore, Stefan Näf, Partners Group Chairman
of Clients, is a non-voting member of the committee. The
COC held seven formal meetings in 2021 (2020: seven),
which lasted approximately two hours each. The majority of
the meetings were attended by all members. The meetings of
the COC were also attended by other non-voting members
of the Board of Directors and relevant non-members of the
Board of Directors who hold key functions or responsibilities
within the firm. The formal meetings were complemented
by regular and considerable informal interactions with
management and employees across the firm on key client-
related matters or projects.
Investment Oversight Committee (“IOC”)
The IOC provides advice and support to the Board of
Directors, the management and the Investment Committees
on the assessment of quality and consistency of decision
processes, the investment performance achieved, the
realization of the projected appreciation on individual
investments, and the investment risks incurred. It defines
quality standards and measurement methods and proposes
any measures that may be required. Furthermore, it oversees
the implementation of ESG initiatives and tracking of ESG
performance for our direct lead assets. The Board retains
the right to discuss any investment proposal in the IOC and
therefore it designated Dr. Marcel Erni and Alfred Gantner
as voting members in the Global Investment Committee
(GIC) as of 1 January 2018. The two IOC voting members
have the right to cast a total of one vote on a particular
transaction. In case of absences of standing members, each
ANNUAL REPORT 2021Corporate Governance Report IOC voting member may cast one vote in the GIC. For any
transaction approved by the GIC, each IOC voting member
furthermore has the right to request a discussion in the IOC
about whether or not to approve the respective transaction,
whereby any transaction declined by the IOC shall no longer
be pursued. Until 3 September 2021, the members of the
IOC were Alfred Gantner (Chair), Dr. Marcel Erni, Lisa A.
Hook and Grace del Rosario-Castaño. As of 3 September
2021, the members of the IOC are Alfred Gantner (Chair),
Dr. Marcel Erni and Grace del Rosario-Castaño. Furthermore,
Stephan Schäli, Partners Group’s CIO, is a non-voting member
of the committee. The IOC held four meetings in 2021 (2020:
four), which lasted approximately three hours each. All of the
meetings were attended by the majority of all members. The
meetings of the IOC were also attended by other non-voting
members of the Board of Directors and relevant non-
members of the Board of Directors who hold key functions
or responsibilities within the firm. The formal meetings
were complemented by regular and considerable informal
interactions with management and employees across the firm
on key investment-related matters or projects.
Crisis Committee (“CC”)
The CC shall ensure appropriate organization, communication
and decision-making during a crisis. It consists of the
Chairperson, the chair of the RAC and another member of
the Board, as determined by the Board (typically for a term
of office of one year, whereby re-election is possible). Upon
the request of the Chairperson and the chair of the RAC,
additional persons can be nominated as ad-hoc members
(solely Board members) and/or as non-voting advisors to the
CC. During a crisis, the CC may, on behalf of the Board, act
in accordance with the ROO and the articles of association,
insofar as prompt decision-making is advisable, subject to
the applicable instructions. “Crisis” shall mean an emerging
or suddenly occurring extraordinary event within Partners
Group (including its portfolio companies) that entails
significant legal, operational, financial and/or reputational
risks with the realistic probability of substantial damage to
Partners Group, which calls for prompt decision-making. The
CC convenes only on an ad-hoc basis in case of a Crisis. The
CC held no formal meetings in 2021.
Formal meeting attendance
The members of the Board are encouraged to attend all
meetings of the Board and the committees on which they
serve. The formal meetings were complemented by regular
and considerable informal interactions with management and
employees across the firm.
Formal meeting attendance
BoD
RAC
NCC
SC
COC
IOC
5
6
1
2
5
4
1
0
2
3
0
0
5
2
1
0
7
2
0
1
4
1
3
0
84%
93% 100% 93%
75%
79%
Meetings held in
2021
Number of
members who
missed no
meetings
Number of
members who
missed one
meeting
Number of
members who
missed two or
more meetings
Meeting
attendance
BoD: Board of Directors, RAC: Risk & Audit Committee, NCC: Nomination & Compensation
Committee, SC: Strategy Committee, COC: Client Oversight Committee, IOC: Investment
Oversight Committee
Note: the formal meetings attendance table takes into account the changes to the Board
composition and its various committees, as described in greater detail on the previous pages.
Self-assessment
The Board of Directors conducts an annual self-evaluation
across several dimensions. This goes beyond assessing
the efficiency and effectiveness of its statutory duties
and supervisory tasks. The assessment also takes into
consideration the Board’s contribution to Partners Group’s
growth by evaluating its impact on investment activities,
strategic projects, human capital management, business and
corporate development initiatives, as well as the development
of client-related initiatives.
Thereby, the firm’s open, transparent and critical Board
culture – characterized by an entrepreneurial spirit and
preparedness to challenge, where appropriate – focuses on
areas in which the Board or Executive Team believe that the
Board or any of its Committees could further improve.
The self-assessment is in the form of an informal group
meeting where Board members assess skills and experience,
preparation, attendance, accountability, communication, and
contribution to strategic planning. Overall, the process is
comprehensive and provides each Board member with the
ability to receive and provide feedback on the workings of
the Board and to define take-aways to be incorporated in the
goals for the upcoming year. The 2021 assessment took place
during the November 2021 Board meeting.
In 2021, the self-assessment commended key achievements
across client- and investment-related activities, the
firm’s public communication and positioning, shareholder
Partners Group | 163
ANNUAL REPORT 2021Corporate Governance Report activities as well as human resources and corporate
operations projects. The Board also highlighted some
further development areas. For example, the need for
clearer governance of responsibilities between the Strategy
Committee and the Board’s Trimestral Investment Update
Meetings and a stronger focus and support on hiring more
senior female and diverse talent.
3.6. Definition of areas of responsibility
The Board of Directors has delegated the day-to-day
management of Partners Group to the Executive Team
unless provided otherwise by law, the articles of association
or as described below. The Board of Directors has the
right to issue specific rules for this purpose and to form
the respective committees to determine the principles of
the business policy, the risk policy of the various business
sectors and the authority and responsibilities of each of the
company’s bodies. The positions of Chairman of the Board
of Directors and of the Chief Executive Officer are held by
separate people, thus ensuring a system of internal checks
and balances and an independence of the Board of Directors
from the day-to-day management of the company.
Apart from the non-transferable functions mentioned in the
law and in the articles of association, the Board of Directors
has a number of additional duties and powers, including
(among others) resolutions regarding essential features of the
group’s organization, all transactions in connection with real
estate (outside of investment activities), the establishment
of employment conditions, all activities pertaining to the
shareholder register, acceptance and handling of audit
reports and budgets, and the periodic review of the internal
organization. Responsibilities delegated to the Executive
Team of Partners Group are set forth in the company’s ROO.
The delegated responsibilities are the following:
1. Direct management as well as continual monitoring of
business activities within the scope of, and in line with,
the regulations, guidelines, competencies, individual
resolutions and restrictions imposed by the Board;
2. Conclusion of transactions provided these lie within the
limits as determined by the ROO and particularly by the
determined authorities and responsibilities set forth in
the ROO or by the regulations, guidelines, competencies,
individual resolutions and restrictions imposed by the
Board of Directors;
3. Establishing subsidiaries and founding new group
companies (branches);
164 | Partners Group
4. Developing and issuing directives, policies and job
descriptions for employees to the extent that such tasks
are not reserved for the Board of Directors;
5. Employment and termination of employees within the
authorities and responsibilities set forth in the ROO;
6.
Initiating legal actions and concluding settlements
according to the authorities and responsibilities set forth
in the ROO;
7. Organization, management and implementation of
accounting, financial planning and reporting, including
preparation of the company’s management report and
annual financial statements for the attention of the
Board of Directors;
8. Preparation of the financial plan (budget) for approval by
the Board;
9. Execution of the Board of Directors’ resolutions;
10. Organizing, assisting and coordinating the employment
benefit plans;
11. Organizing insurance management;
12. Organizing risk management as well as implementing and
monitoring the internal control system and compliance;
13. Informing the senior management of relevant resolutions
made by the Board of Directors and the Executive Team;
14. Proposals for all transactions that have to be submitted
to the Board of Directors according to the ROO and the
authorities and responsibilities set forth in the ROO;
15. Exercising the company’s shareholder rights as a
shareholder within group companies, including the
entitlement to vote on the composition of the members
of management, accepting the annual financial
statements and matters related to this.
3.7. Information and control instruments vis-à-vis
the senior management
The Board of Directors is kept informed of the activities of
the Executive Team through a number of information and
control instruments. The Chief Executive Officer, Chief
Financial Officer, Chief Operating Officer/General Counsel
and respective operating officers with line management
functions are in a regular dialogue with the Chairman of the
Board regarding the general course of business, the financial
situation of the company and any developments or events of
importance to the company and its business. In the event of
extraordinary incidents or developments, the Executive Team
notifies the Chairman of the Board without delay.
ANNUAL REPORT 2021Corporate Governance Report Partners Group's risk governance structure
Board of Directors
Risk control & audit
Risk & Audit Committee
Investment risk control
Investment Oversight Committee
Financial Risk Oversight
Operational Risk Oversight
Regulatory, Legal, and
Conduct Risk Oversight
Investment Risk Oversight
Internal and External Audit
Executive Team
CEOs & CFO
Business Department Heads
& Specialists1)
CEOs, CFO &
General Counsel
Investment Committees, Investment
Business Department Heads &
Investment Specialists2)
Financial Risk Management
Operational Risk Management
Regulatory, Legal and
Conduct Risk Management
Investment Risk Management
1) Specialists include Chief Technology Officer, Chief Information Security Officer etc. 2) Investment Specialists include Chief Investment Officer, Chairman Global Investment Committee etc.
Risk assessment and risk reporting by the Chief Risk Officer
The Executive Team submits decisions beyond the scope
of ordinary management or decisions that carry major
implications to the relevant Board Committee or Board of
Directors, including (but not limited to) decisions specifically
reserved for the Chairman, the relevant Board Committee or
Board of Directors.
3.7.1. Risk governance
Partners Group identifies, assesses, manages and monitors
risks on an aggregate basis for relevant business activities
across the organization. Partners Group has put in place a risk
governance structure comprising the following elements and
related responsibilities:
3.7.1.1. Board
The Board of Directors of Partner Group Holding AG is
responsible for stipulating risk management and governance
principles in line with its obligations under applicable laws and
as further defined in the ROOs.
3.7.1.2. Risk & Audit Committee
The RAC advises and supports the Board in the area of
audit and risk control, as further defined in the ROOs and
described in further detail in chapter 3.5 above. The RAC has
the responsibility to review the risk profile of Partners Group
and ensure appropriate processes regarding ongoing risk
management and audit are in place. It advises and evaluates
the effectiveness of group-wide financial reporting, group-
wide internal control systems and general risk monitoring. It
ensures continuous communication with external auditors.
3.7.1.3. Investment Oversight Committee
The IOC advises and supports the Board on investment
risk management and the oversight of investment and value
creation processes (including efforts to prevent severe
setbacks to Partners Group’s track record and reputation).
The IOC’s responsibilities are further defined in the ROOs
and described in further detail in chapter 3.5 above.
3.7.1.4. Executive Team
The ongoing management of financial, operational, regulatory,
legal and conduct risk as well as investment risk management
of Partners Group’s activities is delegated to the Executive
Team of PGH (“Executive Team”), as further defined in the
ROOs.
The Executive Team reports periodically on the effectiveness
of Partners Group’s risk management to the Board.
3.7.1.5. Investment Committees
The ongoing risk management of Partners Group’s investment
activities is delegated by the Executive Team to the
Investment Committees as further defined in the Investment
Policy Private Markets.
3.7.1.6. Chief Risk Officer
To support the risk governance bodies set out above, the
Executive Team appoints the Chief Risk Officer (“CRO”). The
CRO’s responsibilities are as follows:
• Collecting, consolidating and assessing risk information
from within the organization to enable the RAC to review
Partners Group’s risk profile.
Partners Group | 165
ANNUAL REPORT 2021Corporate Governance Report • Overseeing and steering the execution of Partners
Group’s risk management process by monitoring
Partners Group’s risk profile, defining and procuring the
implementation of adequate systems and methods for
risk supervision, and adjusting such systems and methods
to new business lines and products.
•
Supervising and reporting on the adequacy and
effectiveness of Partners Group’s risk management
setup.
The CRO regularly reports to the Executive Team and the RAC.
The CRO has a direct reporting line to the CEO. The CRO has
unrestricted access to information, locations and documents
within the scope of its function. The CRO is supported in his
duties by the Deputy CRO. The Deputy CRO reports to the
Executive Team and the RAC on an as needed basis.
3.8. Risk culture
Partners Group has a strong risk culture in line with the
purpose and values of the firm as articulated in the Partners
Group Charter. At the core of Partners Group’s risk culture
are the following elements:
• Good judgement: Partners Group encourages staff to
think about the wider implications and impact when
making decisions (“connect the dots”).
• Compliance culture: Partners Group fosters a culture
of compliance to protect its reputation as a responsible
investment manager.
•
Speaking up: Partners Group fosters a culture where
all staff feel comfortable to pro-actively speak up about
concerns, even if they relate to own mistakes, and
highlighting things that are believed to be wrong, as
further set out in the Speak-up Directive.
Partners Group's risk governance framework
• Ownership & accountability: Partners Group expects
its staff to take on ownership (“own your business”) of
their business and related risks. Individual ownership and
accountability are reinforced through the Three Lines of
Defense model.
• Anticipations: Partners Group expects all staff to keep
abreast of all possible changes and emerging risks in their
respective areas of ownership and evolve processes and
controls accordingly.
3.9. Risk management process
Partners Group’s risk management approach consists of three
key elements: A robust risk governance framework, a strong
and broadly embedded risk culture, and a comprehensive risk
management process based on a risk taxonomy tailored to
Partners Group’s business and risk profile.
3.9.1. Enterprise Risk Taxonomy
In order to ensure adequate coverage of relevant risks,
Partners Group operates an Enterprise Risk Taxonomy (“ERT”)
which represents a hierarchical categorization of relevant risks
The ERT is organized along the four following Risk Themes:
•
Finance risks: risks related to our balance sheet and
income statement (e.g. profitability and liquidity)
• Operational risks: risks related to internal processes
and operations (e.g. currency hedging, models, service
providers, international marketing and technology)
• Regulatory, legal and compliance risks: risks related to
non-adherence to regulations, laws or internal policies
(e.g. market abuse, data privacy and money laundering)
•
Investment risks: risks related to our investment process
and platform (e.g. investment due diligence, ESG,
portfolio management and semi-liquid products)
Board of Directors
Identification &
Assignment
Measurement &
Assessment
Reporting
Enterprise
Risk
Taxonomy
Culture
Risk Themes
Risk Categories
Risk Areas
Risk / Controls
166 | Partners Group
ANNUAL REPORT 2021Corporate Governance Report Enterprise Risk Taxonomy
Risk
Themes
Risk Categories
Risk Claims
Risk Areas
Risk Claims
Risks and Controls
Operational/Financial Internal Control System
(Risks, KRIs, Controls)
In the ERT, overarching Risk Themes are decomposed into
more specific Risk Categories and Risk Areas which facilitate
risk management at a more granular level. The lowest level
of the ERT relates to risks and related controls as covered by
Partners Groups Operational and Financial Internal Control
System, which is described in the Operational Internal Control
System Directive.
Partners Group’s ERT ensures alignment between the Board,
the RAC, the Executive Team and individual Risk Category,
Risk Area and Risk/Control Owners, clear assignment of risk
ownership and validation functions as well as consistency in
risk categorization across the firm.
Under the lead of the CRO, the ERT is reviewed annually to
ensure that it remains up to date.
A key aspect of the ERT is the definition of Risk Claims
articulating the level and type of risks Partners Group is
willing to take in order to achieve its strategic objectives.
Risk Claims shape the requisite controls and dictate risk
behaviours. Risk Claims for identified Risk Themes are:
•
Finance risks: we support the development of our
platform and strive for stable revenues while keeping
a strong but light balance sheet able to sustain difficult
market environments.
• Operational risks: we achieve operational excellence
and therefore have low tolerance for costly or otherwise
consequential operational errors and incidents.
• Regulatory, legal and compliance risks: we protect our
reputation as a responsible investment manager and
therefore have zero tolerance for regulatory and legal
fines, misconduct and resulting financial losses.
•
Investment risks: we are a recognized industry leader
in investment management and target systemic
outperformance for our clients while keeping low
tolerance for overall negative developments in single
investment programs.
A second key aspect of the ERT is the clear definition of
individual ownership and accountability.
• Each Risk Category, Risk Area and individual risk is
assigned to an individual owner who is assigned a pre-
defined set of duties and responsibilities (see chapter
3.9.2.)
•
In addition to risk ownership, the ERT also sets
out validation ownership. Risks are assessed for
their materiality (low, medium, high) by considering
their likelihood and potential impact across various
dimensions. Typically, risks with high materiality are
assigned a validation function by the Executive Team
and/or the Board which is assigned a pre-defined set of
duties and responsibilities (see chapter 3.9.2)
Partners Group reinforces individual ownership and
accountability through the Three Lines of Defense model to
support effective risk management. The model defines a clear
segregation of duties (and related roles and responsibilities
as further defined in this Directive) between risk ownership
(“line 1”), risk oversight and validation (“line 1b” and “line 2”),
and independent assurance (“line 3”). The model further
requests the different “lines” to collaborate and communicate
effectively on an ongoing basis.
3.9.2. Roles and responsibilities
Risk Category Owners are typically Executive Team
members or Focus Group members, as further defined in the
ROOs. Responsibilities include:
• Ensuring that Partners Group operates within the set
Risk Claim for the assigned Risk Category
• Determining the Risk Areas and setting Risk Claims
• Assigning Risk Area Owners
• Assessing reports provided by these Risk Area Owners
and implementing corrective measures where required
Risk Category Owners periodically report on the effectiveness
of risk management and controls to the Executive Team
and the Board as part of the annual risk report by the CRO.
Furthermore, Risk Category Owners provide ad-hoc reporting
in case of material breaches of Risk Claims and irregularities in
line with the Quality Assurance Directive.
Risk Area Owners are typically Business Unit Heads or Cell
Leaders. Responsibilities include:
• Ensuring that Partners Group operates within the set
Risk Claim for the assigned Risk Area
•
Identifying risks and determining risk descriptions and
Key Risk Indicators
Partners Group | 167
ANNUAL REPORT 2021Corporate Governance Report • Designing, documenting, implementing and assigning
• Validation Owners typically validate reporting issued by
processes and controls to mitigate these risks following
Operational Excellence principles
• Taking corrective measures in case Risk Claims are (at
risk of) being breached
•
Staying abreast of internal and external changes and
other factors based on horizon scanning
Risk Area Owners periodically report on the effectiveness of
risk management and controls to the Risk Category Owner as
defined between Risk Area Owner and Risk Category Owner.
Furthermore, Risk Area Owners provide ad-hoc reporting in
case of material breaches of Risk Claims and irregularities to
the Risk Category Owner for further discussion on the course
of action.
Risk/Control Owners are typically part of the operating/
business teams and are responsible for the day-to-day
management of risks and corresponding controls.
Responsibilities include, as further outlined in the Operational
Internal Control System Directive:
• Operating defined processes and controls following
Operational Excellence principles to ensure identified
risks are effectively managed
• Making suggestions on how to increase effectiveness of
controls
• Alerting Risk Area Owner of issues, (risk of) breaches and
other irregularities
• Reporting on effectiveness of risk management and
controls to Risk Area Owners
Risk Owners. In addition, Validation Owners issue ad-hoc
alerts in case they become aware of material breaches
of Risk Claims and irregularities where these are not
reported and addressed by the respective Risk Owner.
3.9.3. Identification and designation
The identification of risks and the assessment of their impact
is an ongoing process to ensure all material risks are known,
well understood, clearly assigned and pro-actively managed
based on defined standards. The identification of risks is
assigned to the respective Risk Category Owner and Risk
Area Owner, respectively, as further discussed above.
Upon the identification of a risk, the respective Risk Category
Owner assigns ownership and approves the related Risk
Claim.
3.9.4. Risk measurement and management
Risk measurement and management is the ongoing process
involving both the respective Risk Owner and Validation
Owner, where available, to ensure risks are monitored against
defined Key Risk Indicators and managed in accordance with
defined Risk Claims.
Where necessary, corrective measures (and escalation) are
proactively taken in a timely manner under the lead of the
respective Risk Owner.
3.9.5. Stress testing
To help assess business resilience, financial or other
consequential impact and the adequacy of the risk
management practice, stress testing is periodically conducted.
Key tools include:
Validation Owners are typically employees in Risk
Management, Compliance, Corporate Legal and other
specialized functions. In select cases Validation Owners are
part of operating business teams with a different reporting
line (“line 1b”). They ensure the effectiveness of risk
management and controls as operated by Risk Owners. Their
responsibilities include:
•
•
Scenario analysis: Risk Owners assess if defined Risk
Claims withstand external shocks, such as a global
economic downturns, or power outages and cyber
attacks
Fire drills: Test of the effectiveness of decision making,
operations and controls across various Risk Areas in the
context of a specific mock threat
• Testing the effectiveness of processes and controls
(design and operational effectiveness testing), following a
risk-based approach using measures such as spot checks
or periodic reviews
• Assessing quality of corrective measures taken in case of
breach of Risk Claims
• Reviewing if identified gaps and/or areas for
improvement are implemented
168 | Partners Group
The CRO is responsible for coordinating stress testing. The
Executive Team reviews the result and mandates corrective
measures as and where appropriate. The RAC is informed
on the conclusions of stress testing activities and corrective
measures taken.
ANNUAL REPORT 2021Corporate Governance Report 3.9.6. Risk reporting
Risk reporting enables the Risk Owners, the Executive
Team, the RAC and the Board to make informed decisions,
as appropriate, by providing insightful analysis on the
effectiveness of risk management and related controls based
on accurate and timely data.
Risk data aggregation and reporting is defined, mandated
and overseen by the CRO with the support of the respective
Risk Owners. In areas where validation functions have been
defined, these are expected to review the accuracy of the
respective reporting, as appropriate.
On an annual basis, the CRO provides the Executive Team
and the Board with an annual risk report discussing – inter
alia – the key risk management activities of the respective
calendar year, a risk assessment based on the ERT (specifically
indicating where defined Risk Claims were not adhered to and
corrective measures taken/planned to be taken), the result of
stress testing and an outlook on emerging risks and related
activities (horizon scanning).
Partners Group | 169
ANNUAL REPORT 2021Corporate Governance Report 4. Executive Team
The table below shows the current composition of the Executive Team:
Name
David Layton
Kirsta Anderson
Sarah Brewer
Roberto Cagnati
Juri Jenkner
Andreas Knecht
Marlis Morin
Joined Partners
Group in
Nationality
Age
40
42
38
43
46
2005 US American
2020 US American
2008
British
2004
Swiss/Italian
German
2004
2009
2003
Swiss/Italian
Hans Ploos van Amstel
2020
Dutch
1) Chief Risk Officer as of 1 January 2022.
Position
Chief Executive Officer, Head Private Equity
Chief People Officer
Co-Head Clients Solutions
Chief Risk Officer 1, Head Portfolio Solutions
Head Private Infrastructure
Swiss
52 Chief Operating Officer and General Counsel, Head Corporate Operations
51
56
Chief Financial Officer, Head Group Finance & Corporate Development
Head Client Services
4.1. Members of the Executive Team
As also outlined in section 3.6 above, the Board of Directors
has delegated the operational management of the company
to the extent as permissible by law and the articles of
association to the Executive Team.
The Executive Team manages day-to-day investment
and client activities as well as the firm-wide and cross-
departmental aspects, such as human resources, compliance
with legal and regulatory requirements, and salary steering.
History and education of each member of the Executive
Team, including other activities and functions
David Layton
Partner, Chief Executive Officer and
Head Private Equity
He is the Chief Executive Officer and
Partner of Partners Group, based
in the firm’s Americas headquarters
in Denver, Colorado. He leads the
Executive Team and the Global
Executive Board. He is also the Head of the Private Equity
business department and member of the Global Investment
Committee. Previously, he was the Head of Partners Group’s
Private Equity business in the Americas and has represented
Partners Group on the Board of Directors of several of the
firm’s portfolio companies, including Universal Services
170 | Partners Group
of America, Nobel Learning Communities, MicroPoise
Measurement Systems, Cabot Credit Management, Pacific
Bells, and Strategic Partners. David has been with Partners
Group since 2005 and has 19 years of industry experience.
He holds a bachelor’s degree in finance from Brigham Young
University’s Marriott School of Management, USA.
Kirsta Anderson
Partner, Chief People Officer
She is Partners Group’s Chief
People Officer and Global Head
of the Human Resources business
department, based in Zug and London.
She is a member of the Executive
Team, the Global Executive Board
and is also the Co-Chair of the firm’s Diversity & Inclusion
Committee. She has 20 years of relevant experience. Prior
to joining Partners Group, she was a Senior Partner at
Korn Ferry, where she built and led their global Culture
Transformation practice. Before that she led global client
relationships in the telecoms and financial services sectors
and advanced the firm’s talent management practice. She
holds a master’s degree in philosophy of science from
Stanford University, California, USA and a bachelor’s degree
in philosophy and sociology from New York University, USA.
ANNUAL REPORT 2021Corporate Governance Report Sarah Brewer
Partner, Co-Head Client Solutions
She is Co-Head of the Client Solutions
business department, Co-Head of the
European Client Solutions business
unit and Head of Client Solutions for
the UK, based in London and Zug. She
is a member of the Executive Team.
She has been with Partners Group since 2008 and has
17 years of industry experience. Prior to joining Partners
Group, she worked at Bloomberg LP. She holds a bachelor’s
degree in philosophy, politics and economics from the
University of Oxford, UK.
Roberto Cagnati
Partner, Chief Risk Officer, Head
Portfolio Solutions
He is Partners Group’s Chief Risk
Officer and Head of the Portfolio
Solutions business department,
based in Zug. He is a member of the
Executive Team, the Global Portfolio
Committee as well as the Global Executive Board. He has
been with Partners Group since 2004 and has 18 years of
industry experience. Prior to joining Partners Group, he
worked at Deutsche Bank Asset Management and Credit
Suisse Private Banking in the alternative investment space.
He holds a master’s degree in economics with a specialization
in statistics and financial markets from the University of
Konstanz, Germany.
Juri Jenkner
Partner, Head Private Infrastructure
He is Head of the Private Infrastructure
business department. He is based in
Zug. He is a member of the Executive
Team and the Global Executive
Board. He is a member of the Global
Investment Committee and the Private
Infrastructure Investment Committee. Previously, he was the
Co-Head of the Private Debt business department and Head
of the European Private Debt business unit. He has been
with Partners Group since 2004 and has 22 years of industry
experience. Prior to joining Partners Group, he worked at
Privatbankiers Merck Finck & Co. He holds a master’s degree
in finance from the Lorange Institute of Business Zurich,
Switzerland. He is also a Certified European Financial Analyst.
Andreas Knecht
Partner, Chief Operating Officer,
General Counsel and Head Corporate
Operations
He is the Chief Operating Officer and
General Counsel of Partners Group.
He is based in Zug. He is the Head of
the Corporate Operations business
department and member of the Executive Team and the
Global Executive Board. He has been with Partners Group
since 2009 and has 26 years of industry experience. Prior to
joining Partners Group, he worked at a number of different
law firms, including Niederer Kraft & Frey, and at Man Group.
He holds a master’s degree in law from the University of
Zurich, Switzerland and an LLM from New York University,
USA. He is admitted to the Swiss bar.
Marlis Morin
Partner, Head Client Services
She is Head of the Client Services
business department. She is based
in Singapore. She is a member of
the Executive Team and the Global
Executive Board. She has been with
Partners Group since 2003 and has
28 years of industry experience, having previously built and
headed the firm’s Group Internal Audit function. She also
opened Partners Group’s services and operations hub in
Manila. Prior to joining Partners Group, she worked at Credit
Suisse Asset Management Funds, Raiffeisen Landesbank
Südtirol and Raiffeisenkasse Eisacktal. She holds a master’s
degree in international economics and business studies
from the University of Innsbruck, Austria and Marquette
University, Wisconsin, USA.
Hans Ploos van Amstel
Partner, Chief Financial Officer,
Head Group Finance and Corporate
Development
He is the Chief Financial Officer of
Partners Group, based in Zug. He
is Head of the Group Finance &
Corporate Development business
department and a member of the Executive Team and
Global Executive Board, with 32 years of relevant
experience. Prior to joining Partners Group, Hans was CFO
of Adecco Group, Switzerland, from 2015 to 2020. He
Partners Group | 171
ANNUAL REPORT 2021Corporate Governance Report started his career in Finance at Procter & Gamble (P&G)
in the Netherlands in 1989, working across Saudi Arabia,
Germany, Belgium and Switzerland (1992-2003). In 2003,
he joined Levi Strauss & Co. in Belgium, as Vice President
Finance & Operation Europe, and moved to the USA as
global Chief Financial Officer in 2005. He was CFO of
COFRA Group from 2009 to 2013, before acting as co-CEO
of C&A Europe for a transition period until 2015. He holds
a Bachelor of Arts from the Economische Hogeschool of
Eindhoven, and an MBA in Marketing & Finance from the
University of Brabant, both in the Netherlands.
Organizational changes to senior management
Partners Group reviews its organizational structure on
an ongoing basis and implements adjustments whenever
necessary to support and enable the continued successful
growth of its investment platform for the benefit of the
firm’s clients and shareholders, while ensuring continuity and
stability in its core leadership team.
Continuing with this approach, the firm had announced on
16 March 2021 changes to the composition of its Executive
Committee that took effect from 1 July 2021.
André Frei stepped back from his roles as Co-CEO and
Executive Team member and assumed a new responsibility as
Chairman of Sustainability, overseeing Partners Group’s ESG
and stakeholder impact initiatives. He will remain a Partner of
the firm. David Layton, who has been a Co-CEO since 2019,
became Partners Group’s sole CEO.
Dr. Michael Studer, previously Chief Risk Officer and Co-
Head of Portfolio Solutions, also left the Executive Team. He
will devote more time to relationships with key clients, as well
as to continuing his duties on the firm’s Global Investment
Committee and Global Portfolio Committee. He remained
Chief Risk Officer until 31 December 2021. Roberto Cagnati,
previously Co-Head Portfolio Solutions, has become the sole
head of Portfolio Solutions and joined the Executive Team.
Roberto Cagnati took over the function as Chief Risk Officer
of Partners Group Holding AG from Dr. Michael Studer as of
1 January 2022.
On the client side, Sarah Brewer and Dr. Guido Koch,
previously Co-Heads of Client Solutions Europe, were
appointed Co-Heads of the Client Solutions business
department globally. Stefan Näf, previous Head of Client
Solutions, stepped back to devote more time to relationships
with key clients as Chairman of Clients and will serve
as Secretary to the Client Oversight Committee, a sub-
committee of the Board of Directors. Sarah Brewer will
represent the Client Solutions business department in
the Executive Team.
172 | Partners Group
Kirsta Anderson, previous Head of Human Resources, has
joined the Executive Team in the newly created role of Chief
People Officer. Partners Group is an employer of choice with
a global headcount of more than 1,500 diverse professionals
and Kirsta’s appointment reflects the importance the firm
places on the personal and professional development of its
employees.
4.2. Other activities and vested interests
Other activities outside of Partners Group, if any, of members
of the Executive Team are listed in section 4.1 for each
respective member. None of the members of the Executive
Team hold permanent management or consultancy functions
for important Swiss or foreign interest groups, and none of
the members have official functions or hold political posts.
None of the members of the Executive Team have carried out
tasks for Partners Group prior to joining the firm.
4.3. Number of mandates pursuant to the OaEC
In accordance with art. 12 para. 1 of the OaEC and art. 29
of the articles of association, each member of the Executive
Team may assume a maximum of five additional mandates in
companies that pursue an economic purpose, which includes
a maximum of three additional mandates in listed companies.
For the definition of the term “mandates” and for mandates
exempt from this limitation, see section 3.3 above.
4.4. Management contracts
Partners Group has not entered into any management
contracts with third parties.
4.5. Global Executive Board
The Executive Team is supported by a global leadership
team comprising of Partners and Managing Directors as well
as senior managerial employees of different departments/
units and regions across the firm’s offices in Denver, New
York, London, Singapore, Manila and Sydney, as well as its
headquarters in Zug, Switzerland.
Internally referred to as Global Executive Board, the team
works closely with the firm’s Executive Team on a consulting
basis without decision authority. Executive Team members
are also members of the extended Global Executive Board.
ANNUAL REPORT 2021Corporate Governance Report 5. Compensation, shareholdings,
and loans
6. Shareholders’ participation
5.1. Principles, content, and method of determining
the compensation
Pursuant to art. 14 and 15 of the OaEC, all compensation
paid in 2021 to the members of the Board of Directors
and the Executive Team, and the outstanding loans, if any,
granted to the members of the Board of Directors and the
Executive Team, are disclosed in the Compensation Report
2021. In the Compensation Report 2021, the firm outlines
its compensation principles, components and method. The
Compensation Report can be found in the Annual Report
2021 or on the firm’s website.
5.2. Loans
Members of the Board of Directors and Executive Team
may apply for loans and fixed advances, subject to an
internal review and approval process. Such loans are made
on substantially the same terms as those granted to other
employees, including interest rates and collateral.
Pursuant to art. 12 para. 2 section 1 of the OaEC, the
maximum amount of loans and credits for members of the
Board of Directors and the executive management must
be fixed in the articles of association in order to allow the
company to grant such loans and credits to members of the
Board of Directors and the Executive Team. Art. 27 and Art.
31 of Partners Group’s articles of association state that the
members of the Board of Directors and Executive Team may
be granted loans, credits and provided collateral up to certain
limits at arm’s length conditions.
There were no loans outstanding as of 31 December 2021
for the Board of Directors and the Executive Team (refer to
sections 2.7 and 3.5 in the Compensation Report).
6.1. Voting rights & representation measures
Each share entitles to one vote. The shareholders who are
entitled to attend shareholders’ meetings and to exercise
voting rights are those recorded with voting rights in the
shareholder register as of a qualifying date prior to the
shareholders’ meeting set by the Board of Directors.
Registration in the shareholder register with the attached
voting rights is restricted by the limits on transferability and
nominee registration as set forth in section 2.6. All registered
shareholders are invited to attend shareholders’ meetings. If
they do not wish to attend, shareholders may be represented
at the shareholders’ meeting either by a legal representative
who needs not be a shareholder or an independent proxy.
The Board of Directors issues further rules in relation to
attendance and representation at shareholders’ meetings,
including the electronic issuance of proxies and instructions
to the independent proxy.
6.2. Quorums
The following resolutions of the shareholders’ meeting
require at least two-thirds of the represented votes and the
absolute majority of the represented nominal share value:
•
•
the cases listed in art. 704 para. 1 of the Swiss Code of
Obligations, and
the reversal or amendment of the transfer restrictions
(see section 2.6 for details in relation to such
restrictions).
6.3. Convocation of the general meeting of
shareholders
The Annual General Meeting of shareholders takes place
within six months after the close of the financial year. All
registered shareholders receive a written invitation to the
Annual General Meeting including detailed descriptions of
the items to be discussed and the motions of the Board of
Directors no later than 20 days before the date of the Annual
General Meeting. In 2022, the Annual General Meeting of
shareholders is scheduled for 25 May.
Partners Group | 173
ANNUAL REPORT 2021Corporate Governance Report ANNUAL REPORT 2021
Shareholders representing at least one-tenth of the share
capital may at any time request that a shareholders’ meeting
be called. The request must be submitted in writing at
least 45 days ahead of the meeting by stating the items
on the agenda and the motions to be introduced by the
shareholders.
6.4. Inclusion of items on the agenda
Shareholders representing at least one-tenth of the share
capital may submit proposals to be placed on the agenda at
a shareholders’ meeting, provided these items are received
by the Board of Directors no later than 45 days prior to the
meeting by stating the items on the agenda and the motions
to be introduced by the shareholders.
6.5. Entries in the share register
The general rules for registration as a shareholder apply as
described in sections 2.4 and 2.6. The qualifying date for the
registration of shares is defined by the Board of Directors for
every shareholder meeting.
7. Changes of control and defense
measures
7.1. Opting-out
Partners Group has elected to opt out of the rule that an
investor acquiring 33 1/3 % of all voting rights has to submit a
public offer for all outstanding shares.
7.2. Clauses on change of control
The contracts with the members of the Board of Directors
and the Executive Team do not contain any change of control
clauses.
•
•
•
•
•
•
•
In particular, no protection measures, such as
severance payments in the event of a takeover (“golden
parachutes”);
special provisions on the cancellation of contractual
arrangements;
agreements concerning special notice periods or longer-
term contracts where they exceed 12 months (in line
with OaEC);
the waiver of lock-up periods (e.g. no options that can be
exercised with immediate effect);
shorter vesting periods/accelerated vesting; and/or
additional contributions to pension funds
exist that protect the above-mentioned persons by certain
contractual conditions against the consequences of takeovers.
174 | Partners Group
Corporate Governance Report 8. Auditors
8.1. Duration of mandate and term of office
The consolidated financial statements and the statutory
accounts of Partners Group Holding AG are audited by
KPMG AG. The statutory and group auditors are elected
for one-year periods at the Annual General Meeting of
shareholders and were re-elected at the Annual General
Meeting 2021. KPMG AG was first elected statutory and
group auditor on 21 November 2001. The lead auditor,
Thomas Dorst, has been in charge of the mandate since 10
May 2017 and is subject to a seven-year rotation interval.
8.2. Auditing fees
In the financial year 2021, KPMG AG and other KPMG
companies received a total of CHF 1.8 million
(2020: CHF 1.8 million) for audit services.
8.3. Additional fees
In addition, KPMG AG and other KPMG companies received
CHF 0.1 million (2020: CHF 0.1 million) in fees for non-audit
related services such as consulting services (tax, regulatory
and IFRS) rendered to Partners Group and its subsidiaries in
the financial year 2021.
8.4. Supervision and control vis-à-vis the external
auditors
The Board of Directors is responsible for the acceptance
and processing of the reports from the statutory and group
auditors. In this, the Board of Directors is supported by the
Risk & Audit Committee, which periodically interacts with and
monitors the qualification, independence and performance of
the external auditors.
Based on the constant dialogue with KPMG AG and its
annual presentation to the Board of Directors evaluating
all audit findings, the Risk & Audit Committee conducts
its assessment. This assessment further includes oral and
written statements made by KPMG AG throughout the year
concerning individual aspects or factual issues in connection
with the accounting and audit. During the 2021 financial year,
the external auditors participated in four meetings of the Risk
& Audit Committee in order to discuss audit processes as well
as regulatory guidelines and monitoring. Among others, the
external auditors were also involved in evaluating findings on
risk factors and processes.
Key factors in assigning the external audit mandate to KPMG
AG were:
• Detailed audit budget proposal containing expected
hours and the relevant hourly rate;
• Comprehensive debriefing after completion of audit,
during which suggestions for improvement are discussed
from both sides;
• Quality of service provided;
•
•
•
International expertise in regard to audit and accounting;
Independence and reputation of the audit firm;
Industry knowledge and qualifications;
• Competitive fees.
The Risk & Audit Committee reviews and assesses the
auditor’s performance on an annual basis. In this context
and in the spirit of upholding good corporate governance,
Partners Group periodically conducts appraisals of the audit
mandate, in which budget issues, in particular, are reviewed
to ensure audit fees are kept at a competitive level in the best
interests of shareholders.
Please also refer to section 3.5 concerning the Risk & Audit
Committee.
Partners Group | 175
ANNUAL REPORT 2021Corporate Governance Report
ANNUAL REPORT 2021
9. Information policy
10. Quiet periods
As a company with its shares listed on the SIX Swiss
Exchange AG, Partners Group is committed to pursuing an
open, transparent and consistent communication strategy vis-
à-vis its shareholders as well as the financial community.
Key dates for 2022 are as follows
Event
Annual General Meeting
of shareholders
Ex-dividend date
Dividend record date
Date
25 May 2022
30 May 2022
31 May 2022
Dividend payment date
1 June 2022
AuM announcement
as of 30 June 2021
14 July 2022
Publication of interim financials
as of 30 June 2022
30 August 2022
Publication of Interim Report
as of 30 June 2022
6 September 2022
Partners Group’s Interim and Annual Reports are available
for download on the website at www.partnersgroup.com/
financialreports.
Partners Group also distributes all current news via regular
press releases. All published press releases are available on
the website at www.partnersgroup.com/pressreleases.
To receive all information automatically upon publication
via email, shareholders and other interested parties may
subscribe to press releases at www.partnersgroup.com/
subscriptionform.
Partners Group’s Compensation Report outlining the 2021
compensation recommendations for the Board of Directors
and Executive Team can be found on the Partners Group
website at www.partnersgroup.com/compensation-report or
in the 2021 Annual Report.
For all investor enquiries Philip Sauer can be reached as
follows:
Philip Sauer
Zugerstrasse 57
6341 Baar-Zug
Switzerland
Phone: +41 41 784 66 60
Email: shareholders@partnersgroup.com
176 | Partners Group
In line with Partners Group’s Personal Account Dealing
Directive (issued by the Executive Team), Partners Group
imposes upon its employees market conduct rules related to
personal securities transactions: e.g. disclosure, pre-approval,
and trading restriction requirements. These rules are
designed to protect Partners Group and its employees.
Partners Group allows its employees to transact in “PGH
Securities” defined as: Partners Group Holding AG listed
shares and options written on Partners Group Holding AG
listed and listed debt instruments issued by Partners Group
Holding AG or any subsidiary.
Partners Group’s employees are allowed to transact in PGH
Securities during two order windows per calendar year (each
an “Order Window”) following the public announcement of
Partners Group Holding AG financials.
Furthermore, non-executive Board members of Partners
Group Holding AG are only allowed to transact in PGH
Securities during the same two Order Windows.
Order Windows take place after annual financial results and
interim financial results are communicated, on the following
dates each year:
Public announcement
Order Window
Annual financial results
25 March – 25 May
Interim financial results
18 September –
18 November
While all orders must be placed within an Order Window, the
term of an order can run beyond, i.e. execution of the order
can take place until 6 months after the end of the Order
Window. Any orders not executed within this timeframe
automatically expire. After an Order Window closes, no
adjustments to orders are permitted, including terminating
the order.
The Chairman or the Vice Chairman of the Board together
with the General Counsel or his deputy have the authority to
amend or terminate an Order Window.
If Partners Group’s employees are in the possession of price
sensitive, non-public information in respect to PGH Securities
due to the work they do, they will be added to an insider list,
prohibiting them from trading in PGH Securities.
Corporate Governance Report
11. Non-applicability/negative
disclosure
It is expressly noted that any information not contained or
mentioned herein is non-applicable or its omission is to be
construed as a negative declaration (as provided for in the SIX
Exchange Regulation Corporate Governance Directive and
the Commentary thereto).
ANNUAL REPORT 2021
Partners Group | 177
Corporate Governance Report ANNUAL REPORT 2021
Contacts
Shareholder relations contact
shareholders@partnersgroup.com
Media relations contact
media@partnersgroup.com
www.partnersgroup.com
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Exchange Tower, 130 King Street West, Suite
1820
Toronto, ON M5X 1E3
Canada
T +1 416 865 2033
Milan
Via della Moscova 3
20121 Milan
Italy
T +39 02 888 369 1
New York
The Grace Building
1114 Avenue of the Americas, 37th Floor
New York, NY 10036
USA
T+1 212 908 26 00
Munich
Skygarden im Arnulfpark
Erika-Mann-Str. 7
80636 Munich
Germany
T +49 89 38 38 92 0
São Paulo
Rua Joaquim Floriano, 1120 – 11º andar
CEP 04534-004, São Paulo – SP
Brazil
T +55 11 3528 6500
Dubai
Office 601, Level 6
Index Tower, DIFC
P.O. Box 507253
Dubai, UAE
T +971 4 316 9555
London
110 Bishopsgate, 14th floor
London EC2N 4AY
United Kingdom
T +44 20 7575 2500
Mumbai
Suite 3103 (Four Seasons Hotel)
Plot No. 1/136, Dr. E Moses Road, Worli
Mumbai 400 018
India
T +91 22 2481 8750
178 | Partners Group
Singapore
8 Marina View
Asia Square Tower 1 #37-01
Singapore 018960
T +65 6671 3500
Manila
18/F Seven/NEO Building
5th Avenue Corner 26th Street
Bonifacio Global City, Taguig
Metro Manila 1634
Philippines
T + 632 8 804 7100
Shanghai
Unit 1904-1906A, Level 19
Tower I, Jing An Kerry Center
No. 1515 West Nanjing Road
Jing An District, Shanghai 200040
China
T +8621 2221 8666
Seoul
25th Fl. (Gangnam Finance Center,
Yeoksam-Dong) 152 Teheranro
Gangnam-Gu, Seoul 135-984
South Korea
T +82 2 6190 7000
Tokyo
Daido Seimei Kasumigaseki Bldg. 5F
1-4-2 Kasumigaseki, Chiyoda-ku
Tokyo 100-0013
Japan
T +81 3 5532 2030
Sydney
Level 32, Deutsche Bank Place
126 Phillip Street
Sydney NSW 2000
Australia
T +61 2 8216 1900
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