Partners Group Annual Report 2023

Plain-text annual report

Annual Report 2023 2023 Annual Report 2 Contents 3 Key figures 5 Message from the Chairman and the CEO 8 8 14 19 20 32 34 97 112 137 2023 at a glance Investments Clients Outlook 2024 Financials Key definitions and alternative performance metrics (APM) Consolidated financial statements Financial statements of Partners Group Holding AG Compensation Report Corporate Governance Report 166 Contacts 2023 Annual Report 3 USD billion 147 Total AuM1 CHF million 1'003 Profit CHF per share 39.00 Proposed dividend 41% Return on Equity2 Key Figures As our firm continues to grow, we remain committed to As our firm continues to grow, we remain committed to driving forward our strategy of delivering sustainable driving forward our strategy of delivering sustainable returns through a focus on transformational investing, returns through a focus on transformational investing, bespoke client solutions, and positive stakeholder impact. bespoke client solutions, and positive stakeholder impact. Given the more challenging market environment, we are Given the more challenging market environment, we are especially pleased to report a solid set of financial results for especially pleased to report a solid set of financial results for 2023 and robust operational performance across the 2023 and robust operational performance across the businesses and assets under our stewardship. businesses and assets under our stewardship. 1 As of 31 December 2023, as defined in the Key definitions and alternative performance metrics section of the Annual Report 2023 (p. 32 & 33). 2 See footnote 1, above. Key Figures 2023 Annual Report 4 Key performance indicators Assets under management as of the end of the year (in USD bn) Revenue Margin3,4 Revenues (in CHF m)4 EBIT margin EBIT (in CHF m)5 Financial result (in CHF m) Profit (in CHF m) Management Fee EBIT (in CHF m)5 Shareholders’ equity (in CHF m) Return on shareholders’ equity (ROE)5 Equity ratio5 Share information as of 31 December Share price (in CHF) Total shares Market capitalization (in CHF bn) Free float6 Diluted shares (weighted average) Diluted earnings per share (in CHF) Dividend per share (in CHF)7 Dividend yield per share8 Bloomberg ticker symbol Reuters ticker symbol 3 Based on average AuM of CHF 125.0 billion in 2023 (2022: CHF 124.1 billion), calculated on a daily basis. 4 Revenues from management services, net, including other operating income. 5 As defined in the Key definitions and alternative performance metrics section of the Annual Report 2023 (p. 32 & 33). 6 According to the SIX Swiss Exchange definition. 7 As per proposal to be submitted to the next ordinary Annual General Meeting of shareholders on 22 May 2024. 8 Yield as of 31 December 2023. 2023 146.9 1.56% 1'945 61.3% 1'193 16 1'003 956 2'427 41% 51% 2022 135.4 1.51% 1'872 60.5% 1'132 (2) 1'005 963 2'416 38% 53% 2023 1'213 26'700'000 32.4 84.90% 26'027'274 38.55 39.00 3% PGHN SW PGHN.S Corporate Calendar Annual General Meeting of shareholders 2024 22 May 2024 Ex-dividend date 24 May 2024 Dividend record date 27 May 2024 Dividend payment date 28 May 2024 Announcement of AuM as of 30 June 2024 11 July 2024 Publication of Interim Financial Results & Report as of 30 June 2024 3 September 2024 Message from the Chairman and the CEO Steffen Meister Executive Chairman David Layton Chief Executive Officer 2023 Annual Report 5 Dear clients, business partners, shareholders, and colleagues, investments reflect our highly selective sourcing process focused on sub-sectors of the economy with consistent, above-average, secular growth rates. 2023 was a difficult year for the world, and was one marked by a significant acceleration of change within the economy. Geopolitical tensions and conflicts have escalated in several arenas and inflationary pressures along with the interest rate regime have continued to create significant uncertainty in the financial markets. Our industry has similarly grappled with a more difficult period, with a muted transaction market driven by a disconnect between buyers and sellers, as well as slowed client conversions impacting fundraising across the industry. In this context, we are pleased that the portfolio of businesses and assets under our stewardship continues to perform robustly, and our financial results are solid. Our thematic sourcing, built on a deep industry sector expertise, has identified a significant pipeline of investment opportunities. Despite the more challenging conditions for transactions globally, we invested USD 13 billion into a diversified set of portfolio and direct assets as well as private credit opportunities. These While the exit market remained cautious and we elected to postpone several exits of mature businesses, we generated USD 12 billion in portfolio realizations, with several additional exit processes planned for the next 12 to 18 months. On the client side, our focus on bespoke client solutions allowed us to raise a firm wide record number of mandates in the period, building a solid base for future growth. Our clients entrusted us with USD 18 billion in new capital commitments bringing our total AuM to USD 147 billion as of 31 December 2023, up 8% year-on- year. Based on the confidence of the Partners Group Board of Directors in the sustainability of the firm’s growth and the solidity of the firm's balance sheet, the Board of Partners Group will propose a dividend of CHF 39.00 per share to shareholders at the Annual General Meeting in May 2024. The proposal represents an increase of 5% year-on-year. Message from the Chairman and the CEO 2023 Annual Report 6 2023, in our view, was an inflection point and we expect 2024 to be a transition year as transactions and client conversion periods continue to normalize. Transformational investing — In 2023, all our control investments were originated through the first pillar of our transformational investing approach, thematic investing, to ensure complete alignment of our investment philosophy. The second pillar, entrepreneurial governance, led to a solid average EBITDA growth of 13% with an EBITDA margin of 23% in our direct private equity portfolios.9 In this challenging landscape marked by a consistent acceleration of change, this active transformational investing approach shows its outsized ability to create value, a clear differentiation from more passive investing approaches. This feature will become increasingly important to delivering solid returns for clients. For example, within private equity, in January 2023, we invested in SureWerx, a leading provider of technical and consumable safety products in North America. We identified the company through our "personal protective equipment" theme, which is built on the increasing regulatory requirements on worker safety. Amongst other initiatives, we intend to redesign the sales and product development processes and transform the company's e- commerce capabilities to increase market reach over the period of our custody. Within infrastructure, our thematic work on the decarbonization giga theme highlighted "low carbon fuels", such as biogas, that support stability during the transition to renewable energy as an under-explored investment theme. In June 2023, we invested in a leading biogas and biomethane platform in Germany, and subsequently rebranded the firm as biogeen. Over the course of our ownership, we intend to build out the platform of plants to use other sources of feedstock for production and develop ancillary service lines such as commercializing carbon dioxide as an e-fuel to capture additional demand. Several realizations in H2 postponed — We elected to postpone most exits originally planned for H2 given that the environment for transactions remained more fragile than anticipated earlier in the year. We were nonetheless pleased to have successfully achieved select realizations on behalf of our clients. Within private equity, we announced the agreement to sell Civica, a UK-based global leader in developing software specifically for the public sector. Our transformational investing plan focused on moving products towards cloud offerings, expanding and upgrading the quality of Civica's go-to-market and distribution activities, and centralizing operations while also acquiring 24 strategic add-ons to drive additional growth. This allowed us to double EBITDA across our holding period. In 2023 we also completed the exit of a multi- purpose office space in Tokyo, the Tama Centre. Our value creation focused on creating buildings centered on the tenants' needs and on providing a long-term solution to their office requirements. Another important growth area is evergreens, which are differentiated offerings tailored to cater to private wealth clients. With a 20+ year track record of providing solutions to individual investors across market cycles, we remain a leader within this client segment with USD 44 billion in AuM. Evergreens made up USD 4.8 billion or 26% of total assets raised. Finally, traditional closed-ended programs remain a key element of our fundraising. We brought several new next-generation flagship funds to market this year. These solutions represented 28% or USD 5.1 billion of total assets raised. Revenues impacted by FX headwinds Record number of mandates raised — — We sustained our AuM growth trajectory in 2023 and despite the longer client conversion periods across the industry, we were able to raise a record number of new mandates. Such bespoke solutions, which require an integrated platform to function efficiently, allow us to craft differentiated and long-term private markets solutions for our clients. These mandates also build the foundation for future growth as we find that the average mandate client today has tripled their initial investment size since the start of our relationship. Mandates made up 46% of total assets raised, or USD 8.3 billion. In 2023, management fees of CHF 1'575 million (81% of total revenues) were adversely impacted by the strengthening of the CHF against the USD and EUR, which reduced growth by 5%. Our management fee margin, however, remained stable at 1.26%, highlighting the value clients place in the quality of our solutions and offering us the benefit of pricing stability. Performance fees increased to 19% of total revenues, or CHF 369 million in 2023, as several infrastructure programs reached their performance fee hurdle rates following an active 12-month period of exits for the asset class, 9 Average EBITDA growth rates and EBITDA margins consider pro forma EBITDA from LTM financials available as of 31 December 2023 or latest available valuation date. Includes all active investments across Fund II-V. Message from the Chairman and the CEO 2023 Annual Report 7 Yours sincerely, Steffen Meister Executive Chairman David Layton Chief Executive Officer adding to the diversification of the firm's performance fee sources. However, as we postponed several of our asset divestitures in the second half of the year, performance fees were skewed towards the first half of the year. In combination, total revenues increased 4% year- on-year to CHF 1'945 million. Despite the headwind brought about by the strong CHF, our EBIT margin increased to 61.3%. Sustainability fully embedded in our strategy — We intend for all our stakeholders, including employees at Partners Group and at our portfolio companies, our client beneficiaries, society, and the environment to experience a positive and lasting impact when engaging with our firm. In 2023, our sustainability journey continued, and we made progress on the goals set out in our Corporate Sustainability Strategy. As a preview to our Corporate Sustainability Report, to be published in April this year, in 2023 we have specifically further integrated ESG within our PG Business Systems approach, performed a Double Materiality Assessment, and introduced a new Sustainability Office to oversee ESG at the firm as well as ensure ownership by the Board of Directors and the Executive Team. In a testament to our continued leadership in this space, Partners Group has again received several key industry recognitions, such as being included in the S&P Global Sustainability Yearbook and in the Dow Jones Sustainability Indices, while also retaining the UNPRI A+ rating. Outlook: setting Partners Group up for future growth — Our teams have been laying the groundwork for our firm's future growth and are ready to address the opportunity presented as our industry continues to evolve. We enter 2024 excited by the strength of our bespoke offering and several new additions to our product offering. This year, Partners Group intends to add royalties as a fifth asset class to its investment universe. Royalties can offer attractive risk adjusted returns and diversification benefits that complement the private markets universe already covered by our investment teams. We intend to provide a solution that is differentiated from existing royalties programs, which are specialized and manage concentrated portfolios. Partners Group will be offering the industry's first, dedicated, scalable multi-sector royalties strategy. We will focus on global diversification and access to a variety of sectors that fit well within our thematic investment theses. Within the private wealth space, Partners Group is pleased to launch six new evergreen programs, expanding our existing product shelf to include additional asset classes and multi- asset solutions. While we expect 2024 to be a transition year with buyers and sellers slowly finding a new equilibrium and client conversion rates moving back towards a more normal pace, the new products and asset classes we are adding this year will position us to take advantage of the next phase of growth for our industry. The data from 2023 confirms our hypothesis that the role of public and private markets in financing the economy is shifting, with private markets increasingly surpassing public markets. As the pace of change in the economy accelerates further, our industry will continue to grow in importance. However, to capitalize on this growth requires a focus on transformational investing, and successful private market investors, who, like Partners Group, take an active approach to investing, stand to access a massive investment opportunity of around USD 30 trillion in the next 10 years. As ever, we thank our employees for their dedication to building a leading private markets platform and our clients, business partners, and shareholders for their continued trust in our firm. 2023 Annual Report 8 Market environment — 2023 was a period marked by an acceleration of change: companies across the globe continued to navigate a challenged macro backdrop, including persistent inflationary pressures, a reset interest rate environment, and geopolitical instability. Across the private market industry, the period was characterized by lower overall transaction and exit volumes, which decreased by 54%1 and 55%2 respectively from 2021 peaks. As a result, private equity investors experienced 64%3 lower distributions during the same period. It is in this environment that we see how valuable our operating playbook truly is. It guides how we build conviction in the businesses and sectors in which we invest and helps to navigate more challenging environments with hands-on active value creation. Ultimately our playbook ensures that we continue delivering consistent performance for our clients. Our approach to building value — At Partners Group, we build differently by leveraging our thematic sourcing approach and our entrepreneurial governance model to drive transformational investing regardless of the market environment. We invested USD 13 billion into attractive transformative companies and assets Our thematic sourcing, which involves extensive research to identify high conviction sectors underpinned by secular growth tailwinds, is our foundation. Once we identify the sector, we seek to understand which business models are set to be the winners within these areas. Today more than ever, we follow a strict adherence to our thematic sourcing of investments. In fact, we originated all of our control investments in 2023 through our thematic sourcing efforts. At the sourcing stage, we already begin building a value creation plan which we will further refine with the portfolio company's management post-close. After we take control of a business, our culture is to run that business with the mindset of a founder and entrepreneur to drive fundamental 2023 at a glance – Investments 1 Source: Preqin. Includes add-on, buyout, growth, merger, public to private, and secondary buyout investments. As of 31 December 2023. 2 Source: Preqin. Includes all exit types. As of 31 December 2023. 3 Source: Bloomberg, Raymond James Private Capital Advisory Fundraising Market Analysis. As of 31 December 2023. 2023 at a glance - Investments 2023 Annual Report 9 To complement our direct investments, we invested USD 5.4 billion (40% of total investment volume) into portfolio assets. These portfolio assets include USD 2.4 billion of secondary investments, USD 1.2 billion of select primary commitments to other third-party private markets strategies, and USD 1.8 billion into broadly syndicated loans. USD 13 billion private markets investments in 2023, shown by investment strategy6 Europe was the most active region for our investment business, accounting for 58% of all 2023 investment commitments versus 42% in North America. Against 2023's macroeconomic backdrop, we saw greater relative value in Europe due to better competitive dynamics, which allowed us to purchase high-quality assets at lower multiples. After an active 2022 for Asia-Pacific & Rest of World, our teams in those regions are focused on the onboarding of new assets and are working on building out our current thematic investment pipeline. Edgecore Partners Group's private markets investments5 (in USD bn) value creation as opposed to a purely financial oriented capital provider. This is our entrepreneurial governance model. The portfolio company's management, board, and the Partners Group investment team work collaboratively to implement this model, ensuring alignment of both the strategic and operational priorities of the portfolio company. Finally, with our portfolio management capabilities, we are able to offer a truly diversified portfolio with vintage-year diversification in any given macro backdrop and to deliver long-term sustainable returns for our clients. Investments 20234 — In the challenging environment of 2023, we secured USD 13.2 billion (2022: USD 26.0 million) of attractive investment opportunities into private businesses, assets, and portfolios. The firm deployed USD 7.9 billion (60% of total investment volume) into direct assets, of which USD 5.4 billion was committed as equity and USD 2.5 billion was committed to corporate direct lending. Note: Diversification does not ensure a profit or protect against loss. There is no assurance that similar investments will be made. Investments selected represent illustrative examples in each of the Partners Group investment themes discussed. A full list of all investments in every asset class is available upon request. There is no assurance that the above stated investment strategies and value creation strategies will occur. Actual performance may vary. Past performance is not indicative of future results. For illustrative purposes only. 4 All investments referenced herein were made on behalf of our clients. As of 31 December 2023. Figures include add-on investments and syndication partner investments 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, but exclude investments executed for short-term loans (cash management purposes). Prior to 2023, figures exclude syndication partner investments. 5 Refer to footnote 4, above. 6 As of 31 December 2023. Figures include add-on investments and syndication partner investments. Prior to 2023, figures 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 credit") 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. Figures are rounded. 21.717.010.331.726.013.2201820192020202120222023Direct equity41%Direct credit19%BSL14%Primaries8%Secondaries18%2023 at a glance - Investments 2023 Annual Report 10 Portfolio performance — Despite macro headwinds, our transformational investing strategy resulted in another year of strong average EBITDA growth across our direct private equity portfolios (13%)7 and our direct infrastructure portfolios (15%).8 Direct NAV development of lead transactions net of fees for the 12-month and 10-year period ending on 31 December 2023 is provided in the following table. Net returns of direct portfolio performance9,10 1-year 4.4% 8.5% 12.6% (13.3%) 10-year 17.4% 6.2% 14.0% 4.9% Private equity Private credit Infrastructure Real estate Private equity — Our direct private equity portfolio continued to exhibit strong underlying operational performance and healthy levels of growth, largely resulting from organic value creation. In 2023, the average adjusted EBITDA margin of our direct lead portfolio remained strong at 23%.11 We invested USD 5 billion in private equity In private equity, we invested USD 5.2 billion into attractive well-positioned businesses and assets. Throughout the year, our teams were actively researching over 100 themes to map out entire ecosystems and search for the best derivatives of certain mega trends driving change and growth in the real economy. While the changing investment environment has created challenges, it has also produced opportunities. One example is our investment in ROSEN Group, a leading technology and inspection service provider for critical energy infrastructure, in November 202312 at an EV of EUR 2.7 billion. We identified ROSEN Group several years ago, within our theme of "testing, inspection, and certification". Headquartered in Switzerland, ROSEN Group provides technology empowered inspection services for pipeline infrastructure. It is an essential service provider that safeguards the pipeline infrastructure in 120 countries around the world. In a time where 38% of pipelines in use today are more than 50 years old, ROSEN Group has a clear value proposition. At entry, ROSEN Group was already a segment leader with a winning business model. The company has a sustainable technology leadership, a strong data advantage, and a future-proofed technology pipeline. We will leverage our operational expertise to drive data transformation by changing the legacy software system currently in use to a modern cloud technology with machine learning and AI. In addition, we will add customer centricity to the current engineering focused culture, and enter new end markets including hydrogen pipelines and CO2, which are key to achieving carbon capture targets. ROSEN Group In January 2023 we invested in SureWerx, a leading provider of technical and consumable safety products which offers a "one-stop-shop" for their customer's safety needs. SureWerx has over 4'500 customers who purchase on average 6 product categories or more. We identified SureWerx through our "personal protective equipment ('PPE')" theme within our safety thematic. PPE is characterized by cycle resilience and growth prospects due to increasing regulations on worker safety. There is a growing focus on established brands due to the high cost of product failure. Our value creation plan includes enhancing data and analytics capabilities, building out an enhanced digital ordering platform for customers, and revamping the current supply chain. 7 Average EBITDA growth rates consider pro forma EBITDA from LTM financials available as of December 2023 or latest available valuation date. Includes all active investments across Fund II-V. 8 Revenue and EBITDA growth for the direct infrastructure portfolio are calculated on a capital-weighted basis. The analysis excludes portfolio assets that are pre-revenue, exhibit large dispersions in historical revenue or EBITDA as they are at different stages, or were disproportionately influenced by 2022 energy costs. As of 31 December 2023. 9 Currencies were converted to USD based on 31 December 2023 FX rates. Source: Bloomberg. 10 As of 31 December 2023. Partners Group model net return data year-to-date ("YTD") 2023 as of 31 December 2023. All cash flows and valuations are converted to USD using fixed FX rates as of the date of the track record. Return figures denote pooled internal rates of returns ("IRR"). Performance fees were included for private equity, real estate, infrastructure, and direct lending. Model net returns assume Partners Group‘s standard management and performance fees with a fee ratchet equivalent to a USD 500 million mandate. Model net figures do not include the impact of other possible factors such as any taxes incurred by investors, organizational expenses typically incurred at the start of the investment program, search fee, admin fee, ongoing operating costs or expenses incurred by the investment program (e.g. audit, hedging) or cash drag. The performance presented reflects model performance an investor may have obtained and does not represent performance that any investor actually attained. Real estate includes all investments underlying Partners Group‘s Real Estate Opportunity ("REO") strategies, representing real estate direct investments and (direct) secondary investments. Private equity, private credit, and infrastructure refer to direct investments. Private equity and infrastructure returns refer to lead investments only. Hypothetical performance has inherent limitations. Investors should be aware that the performance presented may not come to pass and should not be relied upon solely in making an investment decision. 11 EBITDA margin as of 31 December 2023. Average EBITDA growth rates consider pro forma EBITDA from LTM financials available as of December 2023 or latest available valuation date. including all active investments across Fund II-V. Refers to private equity direct portfolio. 12 ROSEN Group is expected to close in 2024. 2023 at a glance - Investments 2023 Annual Report 11 Private credit — For private credit, we leverage our roots as a private equity investor by using private equity style due diligence and taking the perspective of an owner and not just a financial investor. While this process may take longer, it ensures that the associated risks of each of our investments are accounted for, and it allows us to better understand the sensitivities and downside scenarios and how realistic the value creation plans as well as business models are. In the current market, we believe being critical and selective will be paramount. The private credit market is expected to continue to grow rapidly but we expect return dispersion to increase. Our focus is on delivering market leading risk adjusted returns while maintaining our low default and loss rates throughout cycles. Due to our thematic approach and a private equity style due diligence we have a declined 90% of new investments over the last 5-years. USD 4 billion invested in credit throughout the year We invested USD 4.2 billion into private credit and liquid loans, including the financing that we provided to PhyNet, the 4th largest dermatology practice management company in the US with presence across 17 states. We identified this investment by leveraging our direct private equity team's in-house knowledge on the "physician practice management" theme in order to proactively identify PhyNet as a potential credit opportunity. We built conviction based on the underlying fundamentals of the business and the deep knowledge of the industry across the Partners Group platform. The business has performed well since our investment. Infrastructure — Our approach of building next-generation infrastructure platforms is about growing and transforming businesses. The investment environment has changed, and while in the past returns could be generated from yield compression, this is no longer the case. The traditional model of investing in a way similar to project finance, with strong government support or subsidies, is increasingly challenged in this new environment. Today, we focus on building privately owned infrastructure businesses by turning single assets with capped upside into dynamic platforms which combine higher return potential with greater downside protection. The most significant difference in this approach is that it allows for agility to adjust to constantly changing technologies and environments. In 2023, our strategy of transformational investing delivered 11% average revenue growth and 15% average EBITDA growth in our direct infrastructure portfolio.13 We invested USD 3 billion into new infrastructure assets We invested USD 3.0 billion into new infrastructure assets during the year. One of our investments from June 2023 was biogeen, a leading biogas and biomethane platform in Germany. With our thematic approach, we developed a broader view of decarbonization, one of our giga themes, allowing us to identify differentiated opportunities in less high-profile areas such as "low carbon fuels", the theme which we identified biogeen through. Biogas, as a substitute for natural gas, will play a role in supporting grid stability throughout the transition to renewable energy. Biogeen is the third largest producer of biogas and biomethane with 45 plants generating 600GWh per annum. In addition, the company benefits from having 93% of its portfolio contracted to 2030 with the AAA-rated German government. biogeen We identified three main pillars to drive value creation: feedstock transition - moving biogeen to second-generation feedstock will allow for more attractive pricing and improved profitability. Secondly, we plan to commercialize carbon dioxide by taking the CO2 produced as part of upgrading biogas to biomethane and commercializing it in the form of methanol either as an e-fuel or as a feedstock for chemical production. Lastly, we plan to build a larger platform from biogeen's initial set of anchor assets through organic expansion and add-on acquisitions across the current highly fragmented market of over 9'000 producers. In October 2023 we also invested in Exus, an international renewables asset management and development firm. Exus provides third-party asset management and project development services for owners of utility-scale solar, wind, and battery storage projects across Europe and North America. We identified Exus through our 13 Revenue and EBITDA growth for the direct infrastructure portfolio are calculated on a capital-weighted basis. The analysis excludes portfolio assets that are pre-revenue, exhibit large dispersion in historical revenue or EBITDA as they are at a different stage, or were disproportionately influenced by 2022 energy costs. As of 31 December 2023. 2023 at a glance - Investments 2023 Annual Report 12 work on the decarbonization giga-theme. The company is set to benefit from multiple thematic trends including growing regulatory support for renewables, geopolitical uncertainty driving wind and solar deployment, and rising demand from corporates to offset carbon footprints. We will focus on transforming Exus into a next- generation platform that builds, owns, and operates renewable energy assets across both Europe and North America, while continuing to provide world-class asset management services to third parties. We will work closely with the company's management on a value creation plan that will include executing on seed portfolio investment opportunities, growing the company's expertise through targeted hires, and expanding its project pipeline through accretive acquisitions and partnerships. Real estate — The real estate market is going through the most disruptive change in decades. The disruption in both capital and occupier markets led to an environment where we invested less capital into new opportunities compared to a normalized period. Nevertheless, we have been working closely with our portfolio to actively steer our assets through this environment whilst preparing for the future opportunities in what we believe will be an attractive investment environment. Across our direct portfolio, we generated positive NOI growth of 5.8% in 2023. Despite the strong operational performance, amid high interest rates, the majority of our assets have been reappraised downwards driven by market cap rate and discount rate expansions. Within our portfolio, the office segment has been the most negatively impacted in terms of valuation. We continue to have strong thematic convictions in residential and industrial platform strategies and maintain that value creation is the best counterbalance to higher interest rates. USD 1 billion invested into real estate amid challenging macroeconomic environment Today, our investment process revolves around acquiring and building assets in growing sectors and locations, with a focus on environmental and connectivity factors. For the high conviction opportunities in the logistics and residential sectors, we see value in pursuing portfolio aggregation strategies. In terms of locations, we remain focused on areas supported by above- average population and employment growth that offer high living standards to tenants and a favorable environment to businesses. Our preferred themes include residential-for-rent and high-quality logistics. In 2023, we invested USD 0.8 billion in new real estate assets and platforms. Kairos Living We focused on aggregating platform strategies and stayed active in adding properties to existing investments such as Kairos Living, a platform that consists of a leading technology enabled operator and a large portfolio of homes across 17 US states. Throughout the year we added 900 new homes to its portfolio. We sourced Kairos Living through our "rental single- family home" thematic. This investment represents an opportunity to assemble a portfolio of residential assets that are strategically located and affordable for young families with stable incomes while providing the highest quality living experiences. Kairos Living has developed a technology platform with a centralized operational approach that enables potential residents to quickly find, tour, lease, and live in a property without the need for in- person assistance. The platform and operating model, which provides real-time data, together with automated underwriting of both on-market and off-market opportunities will allow for more targeted acquisitions, higher operating margins, superior resident service, and a highly scalable investment. Our vision is to capitalize on the fragmented nature of the single-family rental market to build a platform across the region whilst ensuring a superior tenant experience. Realizations in 2023 — Our portfolio realizations in 2023 amounted to USD 12 billion (2022: USD 14 billion). The transaction environment remained challenging throughout the majority of the year, and therefore we elected to postpone several exits originally planned for H2. Partners Group's portfolio realizations (in USD bn) 11.011.829.114.011.5201920202021202220232023 at a glance - Investments 2023 Annual Report 13 One high-profile exit that we announced in 2023 on behalf of our clients was Civica. Originally founded in the UK, today Civica is a global leader in developing software specifically for the public sector. Its products are used by more than 2.5 million public sector workers and facilitate the delivery of essential services including medical care and housing support to over 100 million citizens. During our ownership we transformed Civica from a provider of on-premise software, lower margin IT services, and people intensive Business Process Outsourcing to a pure play Cloud software leader. We achieved this by driving transformation programs across the three key areas of products, go-to-market ("GTM"), and operations. On products, we leveraged our thematic research to build a business plan in order to be a first-mover in Cloud deployed solutions. To achieve this we built a world-class R&D center of excellence in India and expanded this center 10x, thereby drastically growing the company's developer base. At exit, 60% of the company's recurring revenues stemmed from Cloud solutions versus 20% at entry. With an upgraded product we also worked to expand and upgrade the quality of Civica's GTM and distribution capabilities. One key initiative we implemented was upgrading the CRM to give the company better data and metrics to drive decision making. We leveraged this across various areas such as systematic account planning and restructuring sales incentives. At exit, we had added 900 new clients and reduced the annual client turnover to only 2%. Civica Lastly, to drive this change we implemented a new operating model with the help of a driven set of leaders who joined Civica. We centralized Civica into a business that runs along four major end markets from an organization with more than 40 business units. These initiatives exemplify the value creation we aim to achieve across our portfolio. Together, this allowed us to double Civica's organic growth, nearly triple the amount of Cloud revenues, and meaningfully increase the company's adjusted EBITDA margin by 9 percentage points. In 2023, we also completed the exit of a multipurpose office space in Tokyo, the Tama Centre. The office market has been challenging over the past years; however, there continue to be opportunities. For example, in Japan, going back to the office full-time is standard practice, post-Covid. We acquired the Tama Centre with the mindset that we create buildings by listening to our tenants and making them relevant for their use case. This results in providing tenants with a long-term solution for their office needs. During our ownership, we remodeled the property into a tailored space and managed seven long-term lease renewals. In addition, we made the building energy efficient, receiving a superior CASBEE ESG rating. At exit, the property was 100% let. This investment is an example of the strengths of having an international platform with local teams who can identify regional specific themes that may not be globally relevant structural growth areas. Tama Centre 2023 Annual Report 14 Fundraising environment Partners Group AuM (USD bn) — In a year characterized by a decrease in transaction volumes, slower exits, and muted fundraising activity overall, we were pleased to be able to deliver continued AuM growth. However, industry wide, slower client conversion periods due to generally low distribution activity in private markets translated into 27%1 lower fundraising from 2021 highs. Despite this decrease, private markets continues to demonstrate more stability relative to public market capital formation which saw an 84%2 reduction over the same period. Amid longer client conversion periods, we have observed that a disproportionate share of commitments were allocated to the larger and well-established platforms such as Partners Group. These platforms typically offer differentiated solutions across private market asset classes as well as the capability to invest across the entire capital structure. Clients — Robust client demand for our bespoke solutions highlighted the strength of our integrated platform as we set a new Partners Group record for the number of mandates raised during the year. 2023 at a glance – Clients 1 Source: Preqin, includes private equity, private infrastructure (excluding Core & Core Plus) and private real estate (excluding Core & CorePlus) as of 31 December 2023. 2 Source: Bloomberg. Includes Initial Public Offerings (IPO), primary share offers, and SPACs as of 31 December 2023. 83.394.1109.1127.4135.4146.92018201920202021202220232023 at a glance - Clients We raised USD 18.2 billion, bringing our total AuM to USD 146.9 billion as of 31 December 2023 (31 December 2022: USD 135.4 billion), an increase of 8% year-on-year. Partners Group fundraising (USD bn) The breakdown of total AuM across asset classes as of 31 December 2023 is as follows: USD 76 billion in private equity, USD 29 billion in private credit, USD 25 billion in infrastructure, and USD 17 billion in real estate. 2023 Annual Report AuM by asset class 15 Next to 2023 fundraising, AuM growth was further influenced by the performance across Partners Group's private markets portfolios, which led to a positive contribution of USD 3.1 billion from a select number of investment programs that link AuM to net asset value ("NAV") development.3 Negative effects including tail-downs from mature private markets investment programs amounted to USD 8.2 billion while redemptions from evergreen programs accounted for USD 4.5 billion. Foreign exchange effects had a positive impact on underlying AuM growth of USD 2.9 billion, in particular due to the appreciation of the EUR against the USD. Taking into account these factors, we had a net AuM growth of USD 11.5 billion during the period. Climeworks Private equity was the largest contributor to assets raised in 2023, representing 42% (USD 7.7 billion) of all new commitments. On the bespoke client solutions side, along with our open-ended funds, our mandates were a key contributor to fundraising. Private credit had solid inflows, which represented 24% (USD 4.4 billion) of all new commitments. Demand was spread over several different programs and mandates, including our collateralized loan obligations focused on broadly syndicated loans (44% of private credit assets raised), as well as our direct lending activities, which contributed the other 56% of new private credit commitments. Client demand for infrastructure represented 20% (USD 3.7 billion) of all new commitments. In late 2023 we successfully launched the fourth vintage of our flagship direct control infrastructure strategy after being 95% committed in our predecessor strategy. 3 Partners Group reports fee-paying AuM. 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. Full-year AuM numbers for evergreen programs are typically based on 30 November 2023 NAV valuations. 15.716.516.025.022.318.2201820192020202120222023Private equity51%Private credit20%Infrastructure17%Real estate12%2023 at a glance - Clients 2023 Annual Report 16 New commitments in real estate represented 13% (USD 2.4 billion) of overall new client demand, primarily stemming from mandates. AuM growth and client demand (USD bn)4 AuM 2023 Last 5yr. CAGR Gross client demand 2023 75.5 29.3 25.2 17.0 146.9 13% 11% 19% 4% 12% 7.7 4.4 3.7 2.4 18.2 Private equity Private credit Infrastructure Real estate Total Client demand by product structure — Managing over 350 diverse private markets portfolios in different stages of their lifecycle across all private market asset classes is our strength and a key differentiator for our firm. Our ability to create and actively manage bespoke programs that match different clients' targets remains unmatched in the industry and accounted for 72% of our 2023 fundraising. 4 Due to rounding effects, numbers may not add up to sum. 5 Mature mandates capital weighted (only considers mandates that are at least 3 years old). AuM by program structure We raised a record number of mandates in 2023 accounting for 46% (USD 8.3 billion) of our new client commitments. These programs are long-term strategic relationships which typically contribute to future AuM growth as clients increase their allocations over time, with an average mandate client tripling their commitment size since the start of the relationship.5 Our differentiated portfolio management capabilities allow us to tailor investment content to each individual client’s desired risk/return profile and investment level, in order to deliver specific objectives and sustained results throughout market cycles. As of 31 December 2023, we manage 38% of our AuM (USD 56.5 billion) in these solutions. 26% (USD 4.8 billion) of new commitments stemmed from our evergreen programs. These programs allow for a certain amount of liquidity and enable private wealth clients to access private markets more conveniently. We have been a leading global provider of evergreen programs for more than 20 years; our two largest investment programs, which are both globally diversified, accounted for 17% of our AuM as of 31 December 2023. The largest and second largest programs combine private equity, private infrastructure, as well as private credit investments and cater to private investors in the US and Europe, respectively. As of 31 December 2023, we manage 30% of our AuM (USD 44.1 billion) in evergreen programs. Beside these bespoke solutions, we continue to offer traditional commingled funds with multiple investors. In 2023, 28% (USD 5.1 billion) of overall inflows were raised via traditional private markets programs. These are typically limited partnerships with a pre-defined contractual life. Towards the end of 2023, several new flagship programs were launched. As of 31 December 2023, we manage 32% of our AuM (USD 46.4 billion) in traditional private markets programs. Mandates38%Evergreen programs30%Traditional client programs32%2023 at a glance - Clients 2023 Annual Report 17 Client demand by region and by type — Across each of our three program structures, we have a broadly diversified and international client base spanning a range of client types. 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. We continue to see strong interest from distribution partners who represent private individuals and smaller institutional investors. These client groups increasingly recognize the benefits of private markets and aim to mirror the allocations of larger institutional investors in their own investment portfolios. Typically, these clients access private markets through open- ended programs with limited liquidity features (evergreen programs). AuM by region AuM by type Switzerland17%Germany & Austria16%France & Benelux5%Scandinavia3%United Kingdom & Ireland14%Southern Europe4%North America21%South America2%Middle East3%Asia7%Australia7%Public pensionfunds & SWFs22%Corporate &other pension funds22%Insurancecompanies10%Asset managers,family offices,banks & others23%Distribution partners/private individuals23%2023 at a glance - Clients 2023 Annual Report 18 Example evolution of one client's portfolio NAV and asset allocation in an existing evergreen mandate6 — Mandates are long-term strategic relationships which are ideal for clients with highly specific needs. At Partners Group, we can tailor each client's individual mandate to match their target asset allocation and return profile. Over time we can adapt the mandate's asset allocation in response to a changing market environment or investment goals. In the mandate below, the client chose to shift their allocation from a focus on private equity primaries and credit to direct infrastructure, real estate, and private equity over a 10-year period.7 Our differentiated portfolio management capabilities are what allow us to build these dynamic mandates which, rather than being dependent on individual traditional funds for allocations, receive single-line asset allocations. Once an asset has been exited, we can plug in a new asset, thereby ensuring our clients' money is actively invested and working for them throughout the years and alleviating the effects of the J-curve. Below is one client's allocation.8 USD 1.5 billion Private credit Real estate PE primaries PE secondaries PE directs Infrastructure NAV development 2023 asset allocation Asset allocation (private equity, infrastructure, real estate) Direct participation in asset and portfolio investments 6 Past performance is not indicative of future results. For illustrative purposes only. There is no assurance that similar results will be achieved in the future. Diversification does not ensure a profit or protection against loss. Investments in funds are speculative and will involve significant risks. 7 Actual client mandate. NAV, asset allocation, and single-line investments as of 30 June 2023. Chart 1 illustrates the evolution of the client's mandate asset allocation from 30 June 2011 to 30 June 2023. 8 Inside chart layer illustrates asset allocation across infrastructure, private equity, real estate and private credit. Outside chart layer illustrates single-line participations in direct, secondary and primary investments. Other clients may have similar or different allocations. 20112012201320142015201620172018201920202021202220232023 at a glance - Client outlook 2023 Annual Report 19 Outlook 2024 — We expect the growth trajectory for private markets, and more specifically Partners Group, to remain intact, with strong and diversified opportunities across regions, asset classes, client types, and products. For the full-year 2024, Partners Group expects to raise between USD 20 to 25 billion. The firm bases its guidance on an expected normalization of the investment environment and continued strong interest in its bespoke solutions and traditional offerings. The firm further guides for USD -8 to -9 billion in tail-down effects stemming from the more mature closed- ended programs. From 2024 onwards, Partners Group will no longer include redemptions from evergreen programs in its guidance as they are often netted out by performance effects in a normalized environment.9 In the firm's AuM announcement, it provided its last guidance on redemptions which implicitly amounted to USD -3 to -4 billion for 2024. Based on our conviction in the outlook for the industry, 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. 2024 - Outlook $20-25 billion fundraising target 9 Net AuM impact of performance effects and redemptions over the last five years in USD billion: +0.5 in 2019, +0.2 in 2020, +3.8 in 2021, -2.3 in 2022 and -1.4 in 2023 (average over five years: +0.2). 2023 at a glance – Financials 2023 Annual Report 20 Partners Group grew total AuM to USD 147 billion, representing a growth rate of 8% year- over-year. In our reporting currency, this growth translated into an average AuM growth in CHF of 1% year-over-year, following the strong CHF appreciation. Management fees developed broadly in line with AuM in CHF, amounting to CHF 1'575 million. Performance fees increased 37% to CHF 369 million, representing 19% of total revenues. H1 performance fees accounted for 72% of total performance fees and were mainly driven by the firm's infrastructure program performance. H2 performance fees, which accounted for 28% of total performance fees, were impacted by the slower-than- anticipated recovery of the transaction environment, leading us to postpone several asset divestitures across private equity and infrastructure originally planned for H2. Together, total revenues rose by 4% to CHF 1'945 million in 2023. Over the same period, total operating costs increased by 2% to CHF 752 million, primarily driven by higher variable performance fee- related personnel expenses which grew in line with performance fees. Altogether, EBIT increased proportionally with revenues up by 5% year-on-year to CHF 1'193 million. Despite the strengthening of the CHF, our EBIT margin was stable at 61.3%. Profit for the period amounted to CHF 1'003 million, in line with last year. For the financial year 2023, the Board proposes a dividend increase of 5% to CHF 39.00 per share based on the firm's revenue development and a continued confident growth outlook across all business lines. Partners Group's US headquarters 2023 at a glance - Financials 2023 Annual Report 21 2023 financials As of 31 December 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 revenues 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) Dividend (in CHF per share) 2023 2022 Growth 146.9 123.6 125.0 135.4 125.3 124.1 1.56% 1.51% 1'945 1'575 81% 369 19% 1'872 1'603 86% 269 14% +8% -1% +1% +4% -2% +37% 1'193 1'132 +5% 61.3% 60.5% 956 963 1'003 1'005 39.00 37.00 -1% -0% +5% Note: past performance is not indicative of future results. For illustrative purposes only. There is no assurance that similar results will be achieved in the future. 1 Based on average AuM, calculated on a daily basis. 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 2023 (p. 32 & 33). Performance fees expected to account for 20-30% of revenues for next 1-2 years; guidance increases to 25-40% thereafter 2023 at a glance - Financials 2023 Annual Report 22 Management fees impacted by a strong CHF and lower late management fees Revenues5 (in CHF million) — Management fees decreased by 2%, amounting to CHF 1'575 million (2022: CHF 1'603 million) or 81% of total revenues (2022: 86%) and were in line with our mid-term range of 70-80% of total revenues. Management fee growth was adversely impacted by a strengthening of the CHF against the USD and EUR, which reduced growth by 5% in 2023. Furthermore, other revenues & other operating income decreased 15% to CHF 104 million (2022: CHF 122 million). The postponement of closings of closed-ended funds during the period resulted in lower late-management fees. This was partially offset by an increase in 'other operating income' as we continued to see higher income from our treasury management services for the benefit of our clients. -29% +12% (14%) 122 +4% -2% (19%) 104 (86%) (81%) (46%) 132 (54%) Management fee margin stability due to pricing discipline — Over the last ten years, our management fee margin has been stable between 1.22% and 1.33% (average 1.28%), amounting to 1.26% in 2023. This confirms the value clients place in our solutions and allows us to benefit from pricing stability. The relatively higher 2023 performance fees brought the total revenue margin to 1.56% (2022: 1.51%). Rovensa 5 Revenues from management services, net, and other operating income. Revenues include management fees and performance fees. Management fees include other revenues, net, and other operating income. Due to rounding, numbers might not add up. We expect Management fees in CHF to grow in line with the average AuM in CHF 2'6291'8721'9451'4321'6031'5751'197269369Management fees (incl. other revenues & other operating income)Performance fees2021202220232023 at a glance - Financials 2023 Annual Report 23 Management fees derived from our three key private market solutions — Today, we manage over 350 diverse private markets portfolios in different stages of their lifecycle across all private market asset classes contributing to our highly diversified management fees. These broadly fall under three main categories: first, closed-ended limited partnerships; second, 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 third, evergreen programs, which allow our investors to gain full access to private markets from day one. • Traditional programs (32% of AuM) are long-term closed-ended investment partnerships typically represented by our traditional flagship programs. For these 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. • Mandates (38% of AuM) are long-term strategic relationships between Partners Group and an institutional investor with a highly specific and tailored investment mandate which Partners Group manages. Management fees are typically charged on investment exposure via long-term partnerships, which are often not limited to a specific contractual life and will continue or increase for a perpetual term, unless new investments are discontinued. • Evergreen programs (30% of AuM) cater predominantly to high-net-worth individuals and smaller institutional investors and provide access to various private markets asset classes under the form of funds with limited liquidity. Management fees are typically charged on the fund's investment exposure.6 Revenue margin development7 Performance fees remain highly diversified — Performance fees represented 19% of total revenues (2022: 14%), or CHF 369 million (2022: CHF 269 million). H1 performance fees accounted for 72% of total performance fees and were mainly driven by catch-up effects from the firm's private infrastructure programs that reached their hurdle rates following an active 12- month period of infrastructure exits. H2 performance fees, which accounted for 28%, were impacted by the slower-than-anticipated recovery of the transaction environment, leading us to postpone several asset divestitures across private equity and infrastructure originally planned for H2. Of our 350+ programs, over 90 contributed to performance fees in 2023 350+ unique investment programs Performance fees Management fees 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. 7 Calculated as revenues divided by average assets under management, on a daily basis. 1.31%1.24%1.22%1.33%1.29%1.29%1.22%1.31%1.29%1.26%1.39%1.38%1.74%1.89%1.71%1.82%1.51%2.41%1.51%1.56%20142015201620172018201920202021202220232023 at a glance - Financials 2023 Annual Report 24 Private infrastructure performance fees increase 712% as mature programs enter performance fee paying mode Performance fee development per asset class (in CHF million, year-over-year in %)8 -21% +712% 1.1 gigawatts of operational onshore wind assets and was one of the largest renewable energy platforms in Australia. Another example was the full exit of Borssele, an offshore wind farm in the Netherlands, which the firm sold to several infrastructure asset managers. Partners Group built this asset into a 731.5 MW wind farm, owning the value creation process from construction through to full-operational status. Across our asset classes, private equity contributed the largest amount of performance fees, despite a decrease of 21% year-on-year as we decided to postpone the exit of several of our businesses. Performance fees from private credit increased by 108% year-on-year. As credits in private markets are almost exclusively floating rate, this asset class benefited from an increase in base rates. Infrastructure saw performance fees increase 712% in 2023 as several mature programs and mandates entered performance fee paying mode during H1, resulting in a catch-up effect. Infrastructure has historically not been a strong contributor to performance fees as many programs were still in their value creation phase. Real estate was the lowest contributor to performance fees as the industry continues to be in a state of transition. +108% -30% We follow a prudent approach in recognizing performance fees Overall, more than 90 investment programs and mandates with portfolios diversified across vintage years contributed to performance fees in 2023. A large and highly diversified private equity evergreen program was the largest contributor, representing 28% of total performance fees. At an asset level, performance fees were driven by dozens of underlying direct assets and hundreds of portfolio assets. The asset that contributed the most, CWP Renewables, represented 17% of the total performance fees. Partners Group developed CWP from the ground up in accordance with our long-term and transformational approach to investing in next- generation infrastructure assets that benefit from decarbonization trends. At exit, CWP had — In closed-ended investment programs, performance fees are typically charged only once investments are realized and a pre-defined return hurdle rate has been exceeded. To further ensure a very low probability of reversing realized performance fees, we stress-test unrealized investments by applying significant discounts to NAVs of single assets (typically 50% and up to 100%) to assess whether the hurdle rates will still be reached despite these hypothetical mark-downs. These stress tests are driven by a number of factors including macroeconomic circumstances, bottom-up asset analyses, and portfolio-level data. The performance fee recognition methodology for closed-ended programs is explained in detail on pages 30 to 31, as well as in note 1.1. of the notes to the consolidated financial statements. Over the mid-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 a program commences its investment activities, and only then if its underlying investments are successful. EBIT in line with revenues9 In millions of Swiss francs 2023 2022 Revenues 1'945 +4% 1'872 Total operating costs, of which Personnel expenses Personnel expenses (regular) Personnel expenses (performance fee-related) Other operating expenses Depreciation & amortization (752) +2% (740) (603) +1% (596) (470) -5% (496) (133) +33% (100) (108) +3% (104) (41) +1% (40) EBIT 1'193 +5% 1'132 EBIT margin Average FTEs Year-end FTEs 61.3% 1'911 1'931 60.5% 1'705 1'836 +12% +5% 8 Compared to previous years, the firm renamed the operating segments and refined the segment allocation of revenues related to its multi-segment investment programs, which is reflected in the variances. 9 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 2023 (p. 32 & 33). 182301535Private equityPrivate creditInfrastructureReal estate2023 at a glance - Financials 2023 Annual Report 25 Total costs — In 2023, total operating costs increased by 2% to CHF 752 million (2022: CHF 740 million). The increase was mainly driven by higher variable performance fee-related personnel expenses. Other operating expenses grew in line with revenues. Personnel expenses — Personnel expenses, which consist of both regular and performance fee-related expenses, increased by 1% to CHF 603 million (2022: CHF 596 million) and represented 80% of total operating costs. We will continue to steer the firm in line with our ~60% EBIT margin target 1. Regular personnel expenses decreased to CHF 470 million (2022: CHF 496 million) and developed below average full-time equivalent professionals ("FTE") growth of 12%. The average number of FTEs stood at 1'911 (2022: 1'705 average FTEs) as of 31 December 2023. Personnel expenses were positively impacted by foreign exchange effects (mainly weaker USD, SGP, EUR, and GBP vs. CHF) and included lower bonus accruals relative to 2022. EBIT margin development Currency split of management fees10 Currency split of costs11 2. Performance fee-related personnel expenses grew 33% to CHF 133 million, in line with performance fee growth of 37%. Performance fees and performance fee- related expenses have a direct relationship to each other as we allocate up to 40% of all performance fees to our employees. As a result, these two elements move in tandem. Other operating expenses and depreciation & amortization — Other operating expenses increased in line with revenues by 3% during the period and amounted to CHF 108 million (2022: CHF 104 million). Depreciation & amortization remained stable at CHF 41 million (2022: CHF 40 million). Stable EBIT margin at 61% despite strong CHF — EBIT increased by 5%, amounting to CHF 1'193 million (2022: CHF 1'132 million) at an EBIT margin of 61.3% (2022: 60.5%). As a global firm, fluctuations in the EUR or USD against the CHF affect our revenues and costs and, therefore, our total EBIT margin. This results from differences between the currency mix of our revenues and costs. 10 Includes management fees and other revenues, net, and other operating income. 11 Includes regular personnel expenses (excluding performance fee-related expenses), other operating expenses as well as depreciation and amortization. 59%59%58%61%65%65%63%62%63%60%61%20132014201520162017201820192020202120222023EUR44%USD44%GBP6%Others6%USD30%CHF39%GBP12%SGD10%Others5%EUR4%2023 at a glance - Financials 2023 Annual Report 26 Foreign exchange effects — In 2023, the appreciation of the CHF against many other currencies negatively impacted the firm's EBIT margin. Management fees are most affected by this appreciation. Management fee growth was negatively impacted by 5%. Average FX rates development FX rates (average) 2023 2022 Delta 1 EUR CHF 1 USD CHF 1 GBP CHF 1 SGD CHF 0.971 1.005 0.899 0.955 1.117 1.179 0.669 0.692 -3% -6% -5% -3% Total expenses, on the other hand, experienced a positive impact. Performance fee revenues (19% of total revenues) and related costs are largely margin neutral. In aggregate, Partners Group's like-for-like foreign exchange impact on its EBIT margin amounted to approximately -0.6 percentage points . 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). Negative foreign exchange hedging effects offset by positive underlying operational performance — The total financial result amounted to CHF 16 million (2022: CHF -2 million): 1. Portfolio performance: we saw an average net investment result of 8% for the period, or CHF 67 million (2022: CHF 14 million), stemming from our own investment programs in which we invest alongside our clients (see detailed description of balance sheet investments below). Our transformational investing approach translated into positive underlying asset and portfolio performance, resulting in a slight uplift across our investments alongside our clients for the twelve-month period ending on 31 December 2023. For further information, see note 3.4. of the notes to the consolidated financial statements. 2. Foreign exchange hedging and others: the negative contribution of CHF-51 million (2022: CHF -16 million) was driven by unfavorable foreign exchange effects, hedging, and other costs. We hedge our exposure to different currencies for our treasury management and short-term financing services. The actual tax rate stood at 17.0% (2022: 10.9%) resulting in corporate taxes of CHF 205 million (2022: CHF 124 million). Our group corporate tax rate derives from various tax rates across many jurisdictions worldwide where we have active business operations. We anticipated a normalization of the tax rate in 2023 and guided for a range of 15% to 17% following a one-time recognition of goodwill in the tax accounts in 2022. For 2024 onwards, we expect that the Group's effective tax rate will increase to around 18% to 19% due to Pillar Two legislation.12 In summary, the firm's profit was flat year-on- year at CHF 1'003 million (2022: CHF 1'005 million), developing in line with revenues. From EBIT to profit In millions of Swiss francs EBIT Total financial result, of which Portfolio performance Foreign exchange, hedging & others Taxes Tax rate Profit 2023 1'193 16 67 (51) (205) 17% 1'003 2022 1'132 (2) 14 (16) (124) 11% 1'005 5% -0% 12 The firm has assessed its exposure to Pillar Two income taxes based on the most recent tax filings, country-by-country reporting and financial statements for the constituent entities. Pillar Two legislation has been enacted or substantively enacted in several jurisdictions in which the firm operates. In Switzerland where the firm currently has an effective tax rate below 15%, the new rules will be effective as of 1 January 2024. Similar legislation has been enacted in UK, Germany, Luxembourg, and France, however, the Group's tax rate in these jurisdictions is above 15%. 2023 at a glance - Financials 2023 Annual Report 27 Last 10-year dividend & AuM growth 147 Dividend payments — Over the last 16 years, Partners Group has distinguished itself as a leader in the domain of continuous dividend growth, as part of an exclusive group of companies that have consistently increased their dividends over this period. As of 31 December 2023, only four - out of 210 assessed - companies listed on the SIX Swiss Exchange have surpassed our history of consecutive annual dividend increases. We nonetheless remain the leader in terms of dividend growth. Partners Group will have generated a dividend growth of 17% p.a. since the IPO, assuming shareholders approve the proposed dividend by the Board. Proposed dividend of CHF 39.00 per share — Based on the strong development of our business across asset classes and regions, our operating result, and the Board's confidence in the sustainability of this growth, Partners Group's Board of Directors will propose an increased dividend of CHF 39.00 per share (2022: CHF 37.00 per share) to its shareholders at the Annual General Meeting on 22 May 2024. This proposal represents a dividend increase of 5% and a payout ratio of 101% (2022: 95%), on a diluted earnings per share basis. 8.5010.5015.0019.0022.0025.5027.5033.0037.0039.0045Dividend/share (in CHF)Total AuM (in USD bn)20142015201620172018201920202021202220232023 at a glance - Financials 2023 Annual Report 28 Balance sheet — Our balance sheet remains strong. After a dividend payment of CHF 959 million in May 2023, we have an available liquidity of CHF 2'895 million as of 31 December 2023 (31 December 2022: CHF 3'071 million), represented by the sum of our cash & cash equivalents, our undrawn credit facilities, and our short-term loans. As such, we have sufficient liquidity to meet expected operational expenses and to service short-term financial obligations. We remain well within our targeted available liquidity level which enables us to sustain the firm's operations in a financial crisis scenario and/or a depressed economic environment. Available Liquidity In millions of Swiss francs Cash & cash equivalents Undrawn credit facilities Cash liquidity Short-term loans Total available liquidity 2023 281 997 1'278 1'617 2'895 As of 31 December 2023, the firm held a total of CHF 281 million in cash & cash equivalents. The short-term loans related to our treasury management services further complement our total cash & cash equivalents, strengthening our short-term liquidity. At year-end 2023, 735 short-term loans (31 December 2022: 477) were outstanding with an average loan amount of CHF 2.2 million (31 December 2022: CHF 2.8 million), representing a total of CHF 1'617 million (31 December 2022: CHF 1'325 million). The duration of these loans typically amounts to 1-3 months. The majority of the loans are secured against unfunded commitments. In addition, each loan is assigned with a risk-specific capacity, which is measured against an overall risk capacity budget. The firm maintains two unsecured credit facilities with Swiss and international banks amounting to a total of CHF 1'237 million as of 31 December 2023 (31 December 2022: CHF 1'237 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 both the current and prior year. As of 31 December 2023, CHF 240 million were drawn from the credit facilities (31 December 2022: CHF 270 million). As of 31 December 2023, our outstanding debt amounted to CHF 1'130 million (31 December 2022: CHF 799 million). The proceeds of the bonds that we have issued 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 the treasury management services which we offer for the benefit of 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). 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 aggregated net asset value of CHF 820 million as of 31 December 2023 (31 December 2022: CHF 767 million). Partners Group has four fixed-rate senior unsecured CHF denominated corporate bonds outstanding. Investments in associates amounted to CHF 10 million as of 31 December 2023 (31 December 2022: CHF 13 million), which mainly represent a Outstanding corporate bonds Amount Coupon Issued Maturity ISIN CHF 300 million CHF 500 million CHF 150 million CHF 180 million 0.15% 0.40% 2.25% 2.40% June 2017 June 2019 7 June 2024 21 June 2027 CH0361532895 CH0419041287 September 2023 26 September 2028 CH1293714346 September 2023 26 September 2033 CH1293714353 Continued balance-sheet light approach — As of 31 December 2023, the investments we hold on our own balance sheet alongside clients amounted to a total of CHF 1'147 million (31 December 2022: CHF 811 million). The firm's balance sheet investments consist of three components as show further below: financial investments/GP commitments, seed investments, and investments in associates. stake in Pearl Holding Limited, a mature investment program which continues to wind down via ongoing distributions. Partners Group also provides seed financing to certain early-stage investment programs managed by the firm. The balance sheet capacity of these investments is set by the firm's strict balance sheet risk management framework. The underlying assets of these investment programs are typically private markets assets valued at the net asset value, 2023 at a glance - Financials 2023 Annual Report 29 they amounted to (net) CHF 317 million as of 31 December 2023 (31 December 2022: CHF 31 million). Investments alongside clients from balance sheet13 In millions of Swiss francs Financial investments / GP commitment14 Investments in associates15 Seed investments16 Total investments alongside clients 2023 820 10 317 1'147 In total, commitments by the firm's Board of Directors and employees amounted to approximately CHF 2.3 billion as of 31 December 2023 (31 December 2022: CHF 2.2 billion), of which CHF 1.9 billion (2022: CHF 1.7 billion) is committed to closed-ended programs and CHF 0.4 billion (2022: CHF 0.5 billion) to evergreen programs. Financial outlook — 1. Management fees: we expect to raise between USD 20 to 25 billion in total client demand in 2024. We base our guidance on an expected normalization of the investment environment and continued strong interest in our bespoke solutions and flagship offerings. The firm further guides for USD -8 to -9 billion in tail-down effects stemming from the more mature closed-ended investment programs. From now on, Partners Group no longer includes redemptions from evergreen programs in its guidance as they are often netted out by performance effects in a normalized environment.17 In its AuM announcement on 11 January 2024, Partners Group provided its final guidance for redemptions implicitly amounting to USD -3 to -4 billion for the full-year 2024. We guide that the management fees in CHF will develop broadly in line with the average AuM in CHF. 2. Performance fees: we expect performance fees to account for 20-30% of total revenues in the next 1-2 years in a normalizing market environment and increase the range to 25-40% for the years thereafter. We base this long-term guidance on the increasing proportion of our maturing portfolio that consists of direct investments, which entail a higher performance fee. 3. Target EBIT margin: we continue to invest in initiatives that support the growth of our firm. We therefore steer the operating margin towards our target EBIT margin of approximately 60% for newly generated management fees (assuming stable foreign exchange rates) as well as for performance fees. 4. Tax rate: for 2024 onwards, we expect that the Group's effective tax rate will increase to around 18% to 19% due to Pillar Two legislation. 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 such program is successful. The illustrative 13 As of 31 December 2023. 14 NAV excluding CHF 321 million (2022: CHF 323 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. 15 Investments in associates is described in detail in note 4.2. of the notes to the 2023 consolidated financial statements. 16 Seed investments presented in the annual report as assets and liabilities held for sale in note 3.1.3. of the notes to the 2023 consolidated financial statements. 17 Net AuM impact of performance effects and redemptions over the last five years in USD billion: +0.5 in 2019, +0.2 in 2020, +3.8 in 2021, -2.3 in 2022 and -1.4 in 2023 (average over five years: +0.2). example on the next page 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. Partners Group's US headquarters 2023 at a glance - Financials 2023 Annual Report 30 Illustrative example of performance fee recognition in a closed-ended program 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 into distributions to the client of 140, i.e. at 140 cumulated distributions the investment manager is entitled to collect performance fees. 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 (dark grey 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)). 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 investment program Total current value Hurdle rate (8% IRR on inv. capital) Initial client commitment 200 12 Remaining NAV 60 (20% of 60 = 12) 140 100 8 Catch-up of 8 (20% of 40 = 8) Distributions 140 6-9 years Total perf. fees: 20 (20% above 100) 1 As of 31 December 2023, the applied discount was 50% (31 December 2022: 50%), except for select programs where the discount is determined on the basis of a systematic approach and may be up to 100%. Note: performance fees of performance fee-generating investment programs and mandates typically range between 5% to 20% over a hurdle of 4% to 8% IRR on invested capital, depending on the program and instruments. Past performance is not indicative of future results. For illustrative purposes only. 2023 at a glance - Financials 2023 Annual Report 31 Performance fee recognition (realized) 8 Scenario 2: Investment Y realized (hurdle rate met) Investment Y realized for 200 Investment Z increases to 800 Remaining NAV 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 200 Investment Z increases to 500 Remaining NAV 500 • • • Step 1: as investment Y was realized for 200, we would be entitled to a performance fee as the 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. 0 6-9 years 20 (20% of 100) Example: performance fee recognition in three different scenarios 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 200 Investment Z increases to 800 Remaining NAV 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. Key definitions and alternative performance metrics (APM) 2023 Annual Report 32 Key definitions — Assets under Management ("AuM"): Partners Group publishes information on 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 six- months. 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%. AuM and assets raised are not counted where Partners Group is only providing administrative, transactional, or consultant services. Alternative performance metrics (APM) — Partners Group uses various financial and APM to measure its financial performance as part of its financial reporting. The APM 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. APM are mainly 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. Please note that the comparability of APM within the industry can be limited due to different calculation methods. Partners Group uses the following APM (alphabetical order): Dividend payout ratio: is defined as the (proposed) dividend per share divided by diluted earnings per share. Key definitions and alternative performance metrics 2023 Annual Report 33 Return on average shareholder's equity (RoE): is calculated as profit for the period, divided by average equity attributable to owners of the firm. In millions of Swiss francs 2023 2022 Profit for the period 1'003 1'005 Average equity attributable to owners of the firm 2'422 2'657 Return on equity 41% 38% 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 firm. 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 2023 2022 EBIT 1'193 1'132 Revenues from management services, net, including other operating income 1'945 1'872 EBIT margin 61.3% 60.5% 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. Total net debt / (net cash): is calculated as debt plus credit facilities drawn, minus cash and cash equivalents as well as short-term loans. Management Fee EBIT: is calculated as EBIT (see EBIT definition left) 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 adjustments with an effect on the financials make the comparison between the start and end years inconsistent. In millions of Swiss francs 2023 2022 EBIT Performance fee revenues Performance fee-related expenses Management Fee EBIT 1'193 (369) 133 956 1'132 (269) 100 963 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 2023 2022 Debt Credit facilities drawn Cash and cash equivalents 1'130 240 (281) 799 270 (779) Short-term loans (1'617) (1'325) Total net debt / (net cash) (528) (1'035) Revenue margin: is calculated as revenues from management services, net, including other operating income, divided by average AuM (in CHF billion) calculated on a daily basis. In millions of Swiss francs 2023 2022 Revenues from management services, net, including other operating income Average AuM (in CHF bn) calculated on a daily basis Revenue margin (annualized) 1'945 1'872 125 124 1.56% 1.51% 2023 Annual Report 34 Consolidated financial statements 35 36 37 39 41 43 93 Consolidated statement of profit or loss Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Report of the auditors on the consolidated financial statements 2023 Annual Report 35 In millions of Swiss francs Management fees and other revenues, net Performance fees, net Revenues from management services, net Other operating income Personnel expenses Other operating expenses EBITDA1 Note 1.1. 1.1. 1.1. 2.1. 5.4. Depreciation and amortization 5.1.&5.2. 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) 3.3. 3.3. 5.5.1. 1.3. 1.3. 2023 1'487.2 369.4 1'856.6 2022 1'545.0 268.9 1'813.9 87.9 58.0 (603.3) (107.5) 1'233.7 (41.1) 1'192.6 72.4 (56.4) 1'208.6 (205.2) 1'003.4 (595.8) (103.9) 1'172.2 (40.5) 1'131.7 17.9 (20.2) 1'129.4 (124.5) 1'004.9 1'003.4 1'004.9 38.70 38.55 39.34 39.09 Consolidated statement of profit or loss 1 For definitions refer to page 33 of the Annual Report 2023. Consolidated statement of comprehensive income 2023 Annual Report 36 In millions of Swiss francs Note Profit for the period Other comprehensive income Exchange differences on translating foreign operations Total other comprehensive income that may be reclassified to the statement of profit or loss in subsequent periods Net actuarial gains/(losses) from defined benefit plans Tax impact on net actuarial gains/losses from defined benefit plans 5.5.2. Actuarial gains/(losses) from defined benefit plans, net of tax Total other comprehensive income not being reclassified to the statement of profit or loss in subsequent periods, net of tax 2023 1'003.4 (149.0) (149.0) 14.5 (1.7) 12.8 12.8 2022 1'004.9 (48.7) (48.7) (10.0) 1.2 (8.8) (8.8) Total other comprehensive income for the period, net of tax (136.2) (57.5) Total comprehensive income for the period, net of tax 867.2 947.4 Total comprehensive income attributable to owners of the Company 867.2 947.4 2023 Annual Report 37 In millions of Swiss francs as of 31 December Note 2023 2022 Assets Cash and cash equivalents Derivative assets Trade and other receivables Short-term loans Assets held for sale Total current assets Property, equipment, and right-of-use assets Intangible assets and goodwill Investments in associates Financial investments Non-current accrued revenue Other financial assets Employee benefit assets Deferred tax assets Total non-current assets Total assets 3.5.1. (b) 3.4. 3.1.1. 3.5.1. (c) 3.1.3. 5.1. 5.2. 4.2. 3.1.2. 3.1.1. 2.3.2. 5.5.2. 281.0 33.2 819.0 1'617.4 317.3 3'067.9 436.9 61.1 9.9 820.1 283.4 8.1 12.0 105.1 1'736.6 4'804.5 779.5 5.1 641.3 1'324.8 104.5 2'855.2 323.6 74.6 13.4 766.5 420.2 12.6 110.1 1'721.0 4'576.2 Consolidated statement of financial position Consolidated statement of financial position 2023 Annual Report 38 In Swiss francs as of 31 December Note 2023 2022 Liabilities and equity Liabilities Trade and other payables Income tax liabilities Provisions Credit facilities drawn Debt Employee benefit liabilities Liabilities held for sale Total current liabilities Employee benefit liabilities Provisions Deferred tax liabilities 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 3.2.1. 3.5.3. 3.2.2. 2.3. 3.1.3. 2.3. 5.5.2. 3.2.2. 5.3. 4.3. 289.1 73.6 4.1 240.0 299.9 184.6 0.7 1'092.0 292.9 6.0 6.7 830.1 90.7 59.2 1'285.6 2'377.6 0.3 (767.4) 0.2 3'193.8 2'426.9 4'804.5 225.6 114.9 2.5 270.0 200.1 73.0 886.1 334.7 7.3 6.7 799.4 62.6 63.1 1'273.8 2'159.9 0.3 (847.8) 0.2 3'263.6 2'416.3 4'576.2 Consolidated statement of changes in equity 2023 Annual Report 39 In millions of Swiss francs Equity attributable to owners of the Company 2023 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 (847.8) 0.2 (274.7) 3'538.3 3'263.6 2'416.3 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 (67.0) 147.4 (68.9) (68.9) 58.0 58.0 (67.0) 78.5 58.0 33.1 33.1 33.1 (959.2) (959.2) (959.2) — 80.4 — — (937.0) (937.0) (856.6) 1'003.4 1'003.4 1'003.4 (149.0) 12.8 (136.2) (136.2) — — — (149.0) 1'016.2 867.2 867.2 Balance as of 31 December 0.3 (767.4) 0.2 (423.7) 3'617.5 3'193.8 2'426.9 Consolidated statement of changes in equity 2023 Annual Report 40 In millions of Swiss francs Equity attributable to owners of the Company 2022 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 (378.2) 0.2 (226.0) 3'502.2 3'276.2 2'898.5 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 (569.4) 99.8 (74.6) (74.6) 57.9 57.9 (569.4) 25.2 57.9 (82.3) (82.3) (82.3) (861.0) (861.0) (861.0) — (469.6) — — (960.0) (960.0) (1'429.6) 1'004.9 1'004.9 1'004.9 (48.7) (8.8) (57.5) (57.5) — — — (48.7) 996.1 947.4 947.4 Balance as of 31 December 0.3 (847.8) 0.2 (274.7) 3'538.3 3'263.6 2'416.3 Consolidated statement of cash flows 2023 Annual Report 41 In millions of Swiss francs Operating activities Profit for the period Adjustments Share of results of associates 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 non-current accrued revenue Non-cash change in other non-current liabilities Cash generated from/(used in) operating activities before changes in working capital (Increase)/decrease in trade and other receivables and short-term loans Increase/(decrease) in trade and other payables Cash generated from/(used in) operating activities Income tax paid Net cash from/(used in) operating activities Note 2023 2022 1'003.4 1'004.9 4.2. 3.3. 5.5.1. 5.1.&5.2. 2.2. 0.1 (16.0) 205.2 41.1 58.0 (2.7) (27.3) 115.9 (1.3) 0.0 2.3 124.5 40.5 57.9 1.5 (53.9) 18.9 14.3 1'376.4 1'210.9 (597.1) 79.4 858.7 (215.6) 643.1 119.5 (83.2) 1'247.2 (183.7) 1'063.5 Consolidated statement of cash flows 2023 Annual Report 42 In millions of Swiss francs Investing activities Purchase of property and equipment Purchase of intangible assets Note 5.1. 5.2. 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 4.2. Purchase of other financial assets Proceeds on disposal of other financial assets Interest received2 Net cash from/(used in) investing activities Financing activities Repayments of credit facilities Drawdowns from credit facilities Issuance of long-term debts Payment of principal portion of lease liabilities Interest paid Bank charges and other finance expenses paid Dividends paid to shareholders of the Company Purchase of treasury shares Disposal of treasury shares Net cash from/(used in) financing activities 3.3. 3.2.2. 5.3. 3.3. 4.3. 2023 2022 In millions of Swiss francs Note (102.0) (6.7) (429.1) 75.9 1.9 (0.1) 4.3 5.0 (60.5) (28.2) (138.3) 81.7 4.4 (1.6) 68.4 4.0 Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents as of 1 January Exchange differences on cash and cash equivalents Cash and cash equivalents as of 31 December In millions of Swiss francs as of 31 December Bank balances Petty cash (450.8) (70.1) Cash and cash equivalents 2023 (484.4) 779.5 (14.1) 281.0 2023 281.0 0.0 281.0 2022 (164.7) 910.7 33.5 779.5 2022 779.5 0.0 779.5 (1'534.0) 1'504.0 330.4 (15.8) (9.0) (4.6) (959.2) (67.0) 78.5 (676.7) (950.0) 1'220.0 (12.9) (5.6) (4.4) (861.0) (569.4) 25.2 (1'158.1) 2 Excludes CHF 85.0 million (2022: CHF 51.3 million) compensation from short-term loans (included in other operating income) that forms part of net cash flow from operating activities. • 2023 Annual Report 43 Notes to the consolidated financial statements Structure of the notes to the consolidated financial statements 44 46 46 49 51 52 52 52 57 61 61 63 65 65 69 78 78 81 82 83 85 85 87 89 90 90 92 General information 1. Performance 1.1. Revenue and other operating income 1.2. Segment information 1.3. Earnings per share 2. People 2.1. Personnel expenses 2.2. Share-based incentive plans 2.3. Employee benefits - assets and liabilities 3. Financial instruments and financial risk management 3.1. Financial assets 3.2. Financial liabilities 3.3. Finance income and expenses 3.4. Fair value measurement 3.5. Financial risk management 4. Partners Group and related parties 4.1. Subsidiaries 4.2. Investments in associates 4.3. Equity 4.4. Related party transactions 5. Other disclosures 5.1. Property, equipment, and right-of-use assets 5.2. Intangible assets and goodwill 5.3. Leases 5.4. Other operating expenses 5.5. Income tax 5.6. Subsequent events Notes to the consolidated financial statements 2023 Annual Report 44 General information (a) 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 year ended 31 December 2023 comprise the Company and entities (including structured entities) controlled by the Company (its "subsidiaries", refer to further details in note 4.1.). Together, the Company and its subsidiaries are referred to as "the Group". The principal activity of the Group is to provide its clients with investment services in the private markets spectrum. Refer to note 1.2. for more details. The consolidated financial statements were authorized for issue by the Board of Directors ("BoD") on 15 March 2024 and are subject to approval at the Annual General Meeting of shareholders on 22 May 2024. (b) Basis of preparation — Compared to last year's consolidated financial statements 2022 some notes and disclosures have been updated and improved. This includes: • a regrouping of notes in separate sections; and • moving accounting policies as well as significant judgements and estimates identified from a separate note / paragraph to the relevant notes Comparative amounts have been re-presented accordingly. (c) Changes in accounting policies — Standards, amendments and interpretations effective for the first time The accounting policies applied for the period ending 31 December 2023 are consistent with those of the previous financial year except for the following new standards, amendments and interpretations which became effective for the Group for the first time for the financial year starting on 1 January 2023: The Group has adopted the International Tax Reform - Pillar II Model Rules (Amendments to IAS 12) upon release in May 2023 which provide a temporary mandatory exemption from deferred tax accounting for the top-up tax and require new disclosures. Refer to note 5.5. for more details. The statements present a true and fair view of the Group’s financial position, results of operations and cash flows in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and comply with Swiss law. They 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, financial instruments at fair value through profit or loss and typically the Group's assets and liabilities held for sale. A number of other new standards, amendments and interpretations became effective for the Group for the first time but they do not have a significant effect on the Group’s consolidated financial statements: • IFRS 17 Insurance Contracts • Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) • Definition of Accounting Estimates (Amendments to IAS 8) • Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12 Income Taxes) Notes to the consolidated financial statements 2023 Annual Report 45 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 key judgements in applying accounting policies have been identified which are explained in more detail in the respective notes: 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. The expected impacts as disclosed in the table below reflect a first assessment by the Group’s management. Key judgements Notes Control assessment and accounting for investment programs 4.1. Subsidiaries Standard / Interpretation New standards or interpretations IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures Revisions and amendments of standards and interpretations Non-current Liabilities with Covenants - Amendments to IAS 1 and Classification of Liabilities as Current or Non-current (Amendments to IAS 1) Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) Lack of Exchangeability (Amendments to IAS 21) 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 subject to local regulation * * * * * 1 January 2024 1 January 2024 1 January 2024 1 January 2025 Reporting year 2024 Reporting year 2024 Reporting year 2024 Reporting year 2025 Available for optional adoption / effective date deferred indefinitely * Standards and interpretation in the above table have no or are not expected to have a significant impact on the Group‘s financial position or performance. (d) Critical accounting estimates and judgments — In preparing these consolidated financial statements, management has made judgements and estimates about the future that affect the application of the Group's accounting policies and the reported amounts. 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. Accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty and will, by definition, rarely equal the related actual outcomes. The following estimates and assumptions that have a significant risk of causing a material adjustment to the assets, liabilities, income and expenses reported within the next financial year were identified for the Group's consolidated financial statements. Refer to the respective notes for more details: Key estimates Revenue recognition Notes 1.1. Revenue and other operating income Determination of fair values 3.4. Fair value measurement 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 of the business model. These are, however, considered to be of less significance to the Group. Notes to the consolidated financial statements 2023 Annual Report 46 1. Performance 1.1. Revenue and other operating income In millions of Swiss francs Note Management fees and other revenues Revenue deductions related to management fees and other revenues 2023 1'673.7 (186.5) 2022 1'758.6 (213.6) Management fees and other revenues, net 1'487.2 1'545.0 Performance fees Revenue deductions related to performance fees Performance fees, net 409.8 (40.4) 369.4 280.4 (11.5) 268.9 Revenues from management services, net 1'856.6 1'813.9 Compensation from short-term loans Share of results of associates (LGT) Other income Total other operating income 3.5.1. (c) 4.2. 85.0 (0.1) 3.0 87.9 51.3 0.0 6.7 58.0 Total revenues from management services, net and other operating income 1'944.5 1'871.9 In 2023 there was one direct counterparty (2022: one) exceeding 10% of revenues from management services, net, totaling CHF 287.2 million (2022 CHF 199.9 million) with an exposure across the segments of private equity, private credit and infrastructure (2022: private equity, private credit and infrastructure). Note 1.2. provides more information on the Group's operating segments. Critical accounting estimate: Revenue recognition Instances may arise where the Group must decide whether variable consideration should be recognized as revenue. These situations typically 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 in case of a performance deterioration during the remaining life of the investment program. Performance fees are calculated on the basis of the relevant Limited Partnership Agreement or similar underlying agreements and depend on the return of investment programs. The entitlement of the Group to performance fees may change significantly in subsequent periods based on the fair valuation of the investment portfolios, whereby the fair valuation of investment portfolios itself is considered a critical accounting estimate, as detailed in note 3.4. Performance fees are only recognized once it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur in the assessment of the Group (see further explanations in below accounting policy). Accounting policy: Revenue recognition Revenue comprises the amount of consideration to which the Group expects to be entitled to in exchange for transferring promised services to its customers, 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 operating segments (see note 1.2.). Within these, the Group earns income for its various activities, which are further explained and outlined below: Notes to the consolidated financial statements 2023 Annual Report 47 Nature of the underlying service Performance obligations and recognition principles Nature of the underlying service Performance obligations and recognition principles Revenue deductions Revenue deductions mainly include fee rebates to third parties. Fees charged multiple times in multi- layer structures (e.g. through pooling vehicles) are typically waived and rebated. Other income Other operating income comprises income resulting from the ordinary course of business but that is not revenue from management services. This includes operating income on short-term loans and true-up compensation on management fees and organizational fees. Revenue deductions relate to the performance obligations of the rebated services. Rebates may be one-off or recurring, depending on individual agreements. Accordingly, they are recognized at a point in time or over time. Compensation from short-term loans is recognized over the duration of the respective short-term loans. The Group recognizes other income to depict the transfer of promised services which can be at a point in time or over time. Management fees and other revenues Management fees: The Group earns investment management fees for discretionary investment programs, typically based on long-term contracts. The fees are typically based on the commitment of investors into an investment structure or based on the investment exposure of investors in the investment structures. They are typically payable on a quarterly basis in advance. Organizational fees: 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 performance obligation of the Group in respect of these fees is to manage investment structures on an ongoing basis. Ongoing investment management fees are recognized over time, based on the specific contracts. The structuring of the relevant investment programs represents a separate performance obligation for the Group. Revenue is recognized at the point in time when the investor commits. Transaction fees: In relation to certain private markets transactions, the Group receives transaction fee income. These transaction fees are typically non-recurring. The performance obligation of the Group is satisfied by the execution of the private markets transaction. Revenue is recognized at the point in time when the execution of the transaction is completed. Fees to investments: The Group 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. Performance fees The performance obligation of the Group in respect of these fees is to provide value-added services. Revenue recognition occurs over the time period these services are provided to investments. Performance fees are designed to remunerate the Group as an investment manager for the long-term value creation for its clients. Such fees are a profit- sharing incentive the Group is entitled to typically when investment programs outperform a pre-agreed return hurdle. The performance obligation of the Group is to manage investment structures on an ongoing basis. The Group's recognition principles in respect of performance fees are further explained below, see Accounting policy: Performance fees - recognition constraint. Notes to the consolidated financial statements 2023 Annual Report 48 Accounting policy: Performance fees - recognition constraint 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. As a result, there is a high probability that no significant amount of revenue recognized will be reversed in a claw-back situation. Accordingly, the recognition of performance fees from investment programs with a claw-back is typically assessed based on a three-step approach once a pre-defined return hurdle has been exceeded: (1) 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) Net asset value ("NAV") of unrealized underlying investments and, where applicable, other net assets (such as cash or receivables) held by the investment programs is determined. The respective NAV of unrealized investments 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 and, where applicable, other investment program level costs (such as operating expenses) are deducted, resulting in a "Write-Down NAV". This Write-Down NAV is added to the Net Proceeds. 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 are no performance fees. The lower of such calculated performance fees is recognized. (3) 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 2023, the applied discount was 50% (31 December 2022: 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. Notes to the consolidated financial statements 2023 Annual Report 49 1.2. Segment information3 In millions of Swiss francs Operating segments Operating segments Private equity Private credit Real estate Infrastructure Total reportable segments Unallocated Total Private equity Private credit Real estate Infrastructure Total reportable segments Unallocated Total 2023 2022 Management fees and other revenues 1'057.6 198.9 185.8 231.4 1'673.7 1'673.7 1'050.3 214.3 205.8 288.2 1'758.6 Revenue deductions related to management fees and other revenues (115.3) (21.4) (28.9) (20.9) (186.5) (186.5) (126.3) (21.9) (33.9) (31.5) (213.6) Performance fees Revenue deductions related to performance fees 187.7 (5.6) 30.5 (0.4) 4.6 (0.1) 187.0 (34.3) 409.8 (40.4) 409.8 (40.4) 239.6 (10.4) 14.6 (0.1) 6.8 (0.4) 19.4 (0.6) 280.4 (11.5) 1'758.6 (213.6) 280.4 (11.5) Revenues from management services, net 1'124.4 207.6 161.4 363.2 1'856.6 — 1'856.6 1'153.2 206.9 178.3 275.5 1'813.9 — 1'813.9 Other operating income 41.3 3.7 25.5 16.0 86.5 Revenues and other operating income 1'165.7 211.3 186.9 379.2 1'943.1 1.4 1.4 87.9 21.6 2.6 16.0 15.1 55.3 1'944.5 1'174.8 209.5 194.3 290.6 1'869.2 2.7 2.7 58.0 1'871.9 Personnel expenses Other operating expenses Gross segment result before depreciation and amortization Depreciation and amortization Gross segment result Reconciliation to profit for the period Net finance income Income tax expense Profit for the period (132.7) (42.4) (32.7) (72.4) (280.2) (323.1) (603.3) (148.8) (46.4) (39.8) (46.7) (281.7) (314.1) (595.8) (4.6) (1.2) (7.4) (1.3) (14.5) (93.0) (107.5) (5.1) (1.3) (4.4) (1.3) (12.1) (91.8) (103.9) 1'028.4 167.7 146.8 305.5 1'648.4 (414.7) 1'233.7 1'020.9 161.8 150.1 242.6 1'575.4 (403.2) 1'172.2 1'028.4 167.7 146.8 305.5 1'648.4 (455.8) 1'192.6 1'020.9 161.8 150.1 242.6 1'575.4 (443.7) 1'131.7 (41.1) (41.1) (40.5) (40.5) 16.0 (205.2) 1'003.4 (2.3) (124.5) 1'004.9 3 Compared to previous years, the Group renamed the operating segments and refined the segment allocation of revenues related to its multi-segment investment programs. Comparative amounts have been re-presented. Notes to the consolidated financial statements 2023 Annual Report 50 (a) Operating segments — The Group provides its clients with investment services in the private markets spectrum. These services comprise both 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 style, industry, and geography of the investments in private markets. Management has determined the following operating segments based on internal operations and the reporting provided to the Board of Directors ("BoD"), which has been identified as the chief operating decision-maker. Management believes that this is the most relevant way to report the results of its operating segments: regions. In addition, the Group invests in the real estate secondary market by acquiring portfolios of privately held assets and in the primary market through its comprehensive set of investment relationships. Infrastructure 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. 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 through its comprehensive set of investment relationships. (b) General activities and allocation — 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 Private credit Private credit 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 that are looking for non-bank financing across the entire debt structure. These investments range from predominantly senior loans to subordinated financing solutions and also span across different regions. Real estate 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 benefiting from transformative trends where it can deploy a value creation plan. The Group invests in either equity or debt instruments, across several sectors and 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’. There were no intersegment transactions and, as such, no eliminations are necessary. No assets or liabilities are allocated to segments other than financial investments as detailed in note 3.5.2. (c). Notes to the consolidated financial statements 2023 Annual Report 51 (c) Geographical information — The operating segments are managed globally with Switzerland as the headquarters. Local offices ensure access to clients and investment opportunities within their geographies. Investment management services are primarily provided out of Switzerland, while local offices such as Guernsey and Luxembourg serve a s the Group’s main fund hubs. Revenues were invoiced and collected in the following countries: 1.3. 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 2023 939.94 752.05 2022 1'016.16 859.51 In millions of Swiss francs 2023 2022 Earnings per share Note 2023 2022 Switzerland4 Guernsey Luxembourg US Others (6.9) 584.5 684.5 388.8 205.7 41.9 607.4 669.4 285.1 210.1 Profit for the period attributable to owners of the Company (in millions of Swiss francs) Weighted average number of ordinary shares outstanding (in number of shares) 1'003.4 1'004.9 4.3. 25'929'206 25'544'839 Basic earnings per share (in Swiss francs) 38.70 39.34 Total revenues from management services, net 1'856.6 1'813.9 Effect of options on issue (in number of shares) 98'068 164'431 Above-stated amounts do not correspond to the revenues reported to authorities in these countries as revenues are re-allocated to the Group’s operating entities based on the Group’s transfer pricing policy which complies with the OECD Transfer Pricing Guidelines. Information about major customers is detailed in note 1.1. Accounting policy: 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. Weighted average number of ordinary shares (diluted, in number of shares) 26'027'274 25'709'270 Diluted earnings per share (in Swiss francs) 38.55 39.09 As of 31 December 2023, the Group had 1'133'230 options and non-vested shares outstanding (2022: 1'101'870) (see note 2.2.). The treasury shares necessary to cover the obligation for 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 4.3.) is already net of non-vested shares outstanding. The Group excluded 280’858 options in above calculation of diluted earnings per share because they would be antidilutive for the period presented but could potentially dilute basic earnings per share in the future (2022: 105'135 options). 4 Revenue deductions related to management fees, performance fees and other revenues are largely reimbursed by Swiss entities (2023: CHF 112.0 million; 2022: CHF 128.6 million). Notes to the consolidated financial statements 2023 Annual Report 52 2. People 2.1. Personnel expenses In millions of Swiss francs Salaries and cash bonus Share-based payment expenses5 Note 2.2 Other long-term benefits (management carry plan) Retirement schemes - defined contribution plans Retirement schemes - defined benefit plans 2.3.2. Other social security expenses Other personnel expenses Personnel expenses 2023 (372.8) (57.1) (100.6) (11.8) (6.7) (30.1) (24.2) (603.3) 2022 (428.0) (57.1) (50.2) (9.4) (5.5) (6.0) (39.6) (595.8) The average number of employees in 2023 was 1'931 (2022: 1’724), which is equivalent to 1'911 average full-time employees (2022: 1’705). 2.2. Share-based incentive plans Share-based payment expenses resulted from allocations of shares and options granted in 2023, as well as in previous periods: In millions of Swiss francs Note 2023 2022 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) Grants 2022 (non-vested shares) Grants 2023 (options and non-vested shares) Entry shares 2.2.1. 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) Grants 2022 (MPP) Grants 2022 (MIP) Grants 2023 (MPP) Total rights 2.2.4. (0.3) (0.5) (1.9) (4.1) (6.3) (12.6) (11.6) (3.2) (40.5) (0.8) (0.8) (1.1) (0.4) (2.7) (0.8) (5.1) (1.1) (3.8) (16.6) (57.1) (0.3) (0.6) (0.9) (3.7) (7.1) (9.0) (12.3) (5.1) (39.0) (0.5) (1.8) (1.2) (1.7) (0.4) (4.3) (1.0) (5.2) (2.0) (18.1) (57.1) 5 Share-based payment expenses for non-executive members of the BoD of CHF 0.9 million (2022: 0.8 million) are disclosed as a part of third party services (see note 5.4.). Total share-based payment expenses5 Notes to the consolidated financial statements 2023 Annual Report 53 The number and weighted average exercise price of options and non-vested shares developed as follows: The outstanding instruments are split by strike price and grant year as follows: 2023 Weighted average exercise price (in CHF) Number of instruments Weighted average exercise price (in CHF) 862.46 1'002.93 726.11 1'098.40 990'389 (25'670) (108'017) 194'583 850.98 922.17 559.85 2022 Number of instruments 1'060'283 (24'790) (45'104) 916.71 1'051'285 862.46 990'389 111'481 (29'536) 81'945 107'103 4'378 111'481 1'133'230 1'101'870 Outstanding options as of 1 January Forfeited Exercised Granted Outstanding options as of 31 December Outstanding shares as of 1 January Movements Outstanding shares as of 31 December Outstanding instruments as of 31 December Of the outstanding 1'133'230 options and non-vested shares (31 December 2022: 1'101'870), 564'697 options were exercisable immediately (31 December 2022: 470'225). All other options and non-vested shares are restricted until at least 30 September 2024. Numbers of instruments outstanding as of 31 December 2023 2022 Grant year Strike price in CHF 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 Options granted in 2023 Options granted in 2023 Non-vested shares granted in the last five years 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 1'055.00 1'116.50 n/a 2'086 1'418 4'000 1'032 110'250 4'066 230'950 31'889 160'517 18'489 178'150 20'890 92'965 57'255 137'328 81'945 Total instruments outstanding 1'133'230 16'516 2'086 1'418 4'000 1'032 133'350 8'088 268'657 35'078 184'000 18'489 191'650 20'890 105'135 111'481 1'101'870 Notes to the consolidated financial statements 2023 Annual Report 54 The estimated fair value of options granted is based on the Black Scholes model. The fair value of the shares granted is based on the share price at the date of grant. The fair value of shares and options granted in 2023 and related assumptions were as follows: The Group has a long history of granting equity incentives to its employees. These are awarded at year- end through options, shares and participation rights on the basis of the following plans: Non-vested options6,7 Non-vested options7 Non-vested options Vested shares Non-vested shares Date of grant 13.11.2023 13.11.2023 21.11.2023 21.11.2023 21.11.2023 2.2.1. Entry shares In 2023, the Group granted 3'926 (2022: 4'995) shares, net of forfeitures, totaling CHF 3.2 million (2022: CHF 5.1 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. Fair value per option/share at measurement date (in CHF) Share price (in CHF) Exercise price (in CHF) Vesting conditions Expected volatility 187.21 1'055.00 1'055.00 5 years cliff 28.4% 179.72 1'116.50 1'116.50 1'116.50 1'116.50 1'116.50 2.2.2. Employee Participation Plan ("EPP") 6 years cliff 1'116.50 5 years linear 28.3% at grant 5 years linear The Employee Participation Plan ("EPP") aims to align employee interests with those of external shareholders. The 2023 plan was a share and a share-option plan for the Group’s eligible employees. The allocation to departments, teams and individuals was dependent on their performance and contribution to the overall achievement of the Group’s goals during the period. Expected term of execution 6 years 7 years 4.4 years Expected dividend ratio Risk-free interest rate (based on Swap rates) Total options/shares granted 3.75% 1.38% 57'255 3.75% 1.28% 137'328 Total value granted in 2023 (in millions of CHF) 10.7 5.5 24.7 795 0.9 10'539 11.8 The 2023 EPP follows a linear vesting model, with proportionate annual vesting over a five-year period following the awards and contingent upon the employee remaining with the Group during the respective service period. Information on EPP grants from prior years is presented in the Annual Report for the respective year. 1.7 0.8 6.2 0.9 3.7 2.2.3. Management Incentive Plan ("MIP") Amounts recognized in profit or loss (in millions of CHF) Total amount recognized in profit or loss (in millions of CHF) - recognized in personnel expenses related to the grant 2023 - recognized in third party services related to the grant 2023 - recognized in personnel expenses related to the grant 2022 13.3 11.6 0.9 0.8 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. 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 participation rights on the development of the Management Fee EBIT as defined in the Key definitions and alternative performance metrics section starting on page 32 of the Annual 6 Under the 2022 MIP, the Group granted equity incentives equaling the initial fair value of 12.7 million. The amount was allocated to the participants in two tranches, CHF 7.1 million in 2022 as participation rights and CHF 5.6 million in 2023 in options. The 2023 allocation in the amount of CHF 5.6 million translates into 29'955 options. As the Group and the beneficiaries of the plan 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 2022. 7 Under the 2023 MIP, the Group granted equity incentives equaling the fair value of 10.6 million. The amount is allocated to the participants in two tranches, the first tranche in November 2023 in the amount of CHF 5.1 million. The 2023 allocation in the amount of CHF 5.1 million translates into 27'300 options. The second tranche in the amount of CHF 5.5 million will be allocated in fall 2024. As the Group and the beneficiaries of the plan 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 2023. Notes to the consolidated financial statements 2023 Annual Report 55 Report 2023. Information on MIP grants from prior years is presented in the Annual Report for the respective year. In 2023, the MIP plan was amended to a long-term option-only plan. Options were granted on 13 November 2023 and were allocated in two tranches that follow a five-year and six-year cliff-vesting model, respectively. Unvested MIP participation rights and options are forfeited when a plan participant leaves the Group. 2.2.4. Management Performance Plan ("MPP") In 2017, the Group introduced the MPP for members of the Executive Team and executive members of the Board of Directors. The plan reinforces a strong alignment of interests with shareholders as well as clients. It was amended in 2021 by replacing the option-like component that focused entirely on the Partners Group Holding AG share price performance with participation rights which focus on the development of the Management Fee EBIT as defined in the Key definitions and alternative performance metrics section starting on page 32 of the Annual Report 2023. Information on MPP grants from prior years is presented in the annual report for the respective year. The intrinsic value of the 2023 MPP is determined by assessing the growth of the Management Fee EBIT. In prior years, the intrinsic value of the MPP was measured in year five after grant. Since 2023, plan participants may choose to lock in the intrinsic value of their MPP rights in year five, six, or seven. The 2023 MPP restricts payouts to a Management Fee EBIT development above a target growth rate. Likewise, a cap growth rate is applied above which no further value creation can be achieved. The intrinsic value will be assessed on the basis of the Management Fee EBIT in the fifth, sixth or seventh financial year after the grant, dependent on when the MPP recipients elect to lock in the intrinsic value of their MPP rights. For example, for the MPP allocated in 2023, the Management Fee EBIT payout restriction is assessed based on the Management Fee EBIT for 2028 if a plan participant locks in the intrinsic value after the fifth year. When the Management Fee EBIT for 2028 is below CHF 1'055.9 million, equal to a 2% annual 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 2028 is above CHF 1'923.5 million, equal to a 15% annual Management Fee EBIT growth rate (the cap-strike Management Fee EBIT), the intrinsic value by default cannot exceed 7.4 times the initial grant value. If the measurement period is extended to year six or seven, the Management Fee EBIT payout restriction is assessed based on the Management Fee EBIT for 2029 or 2030, respectively. The same floor and cap growth rates will apply in any case. This results in a floor-strike Management Fee EBIT of CHF 1'077.0 million and CHF 1'098.5 million, respectively, and in a cap-strike Management Fee EBIT of CHF 2'212.0 million and CHF 2'543.8 million respectively, for year six and seven. Once the intrinsic value has been determined, the MPP payout occurs as the performance fees of the underlying investment vintage materialize. To assess whether the payout is higher or lower than the intrinsic value, the investment return targets set at grant are compared against the actual achievement on an annual basis. If 100% of the targeted investment performance is achieved over a time period of 14 years, the intrinsic value locked in at either year five, six, or seven will be paid out at 100% in the form of Partners Group shares. The total payout can be higher than the originally targeted nominal amount in the case of investment performance above target returns, or lower than the originally anticipated nominal amount in the case of lower investment performance. In the worst-case scenario, the amount can be zero, irrespective of the intrinsic value (if investment performance does not translate into any performance fees). Any potential future entitlements to plan participants, based on performance fees received by the firm prior to the assessment of the intrinsic value, will be accrued and paid out in subsequent years. For further details regarding the MPP, refer to the compensation report in the Annual Report 2023. MPP grants typically 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. Unvested MPP participation rights are forfeited when a plan participant leaves the Group. In accordance with the option-like characteristics of the MPP, 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-like element of the contract. MPP participation 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 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 recipient, respectively. The difference between the calculated prices of these two participation rights is considered the net price of the instrument which in turn is used to calculate the allocation date fair value. Notes to the consolidated financial statements 2023 Annual Report 56 Accounting policy: Share-based payment transactions All of the Group's share-based payment plans qualify as equity-settled. The fair value at grant date of share- based payment awards granted to employees is recognized as personnel expense in the consolidated statement of profit or loss with a corresponding increase in equity, over the period until the employees unconditionally 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 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 are no true-ups for differences between expected and actual outcomes. Fair value of MPP granted in 2023 and related assumptions: In millions of Swiss francs Date of allocation Management Fee EBIT Strike measured at year 5 Strike measured at year 6 Strike measured at year 7 Vesting conditions8 Expected volatility9 Expected term of execution Expected dividend ratio Risk-free interest rate (based on swap rates) Short-Call Long-Call March 2024 March 2024 956.3 1'055.9 1'077.0 1'098.5 5 years 28.2% 6 years 0.0% 0.0% 956.3 1'923.5 2'212.0 2'543.8 5 years 28.2% 6 years 0.0% 0.0% Total fair value of the 2023 participation right exercised year 5 117.1 Grants in 2023 to % of 2023 participation right Vesting conditions8 In millions of CHF 2023 MPP recipients 13.1% 5 years 15.3 Amount recognized in profit or loss (in millions of CHF) MPP Amounts recognized in profit or loss (in millions of CHF) 2023 3.8 3.8 8 Linear vesting for plan participants with a five or more year tenure in the respective committee, cliff vesting otherwise. 9 The applied expected volatility is based on the volatility of the Management Fee EBIT of the last 20 quarters. Notes to the consolidated financial statements 2023 Annual Report 57 2.3. Employee benefits - assets and liabilities In millions of Swiss francs as of 31 December Net defined benefit asset Employee benefit assets Net defined benefit liability Accrued variable compensation (cash bonus) Management carry plan Other employee benefit liabilities Employee benefit liabilities Current liabilities Non-current liabilities Employee benefit liabilities 2023 12.0 12.0 (0.8) (252.9) (203.4) (20.4) (477.5) (184.6) (292.9) (477.5) 2.3.1. Performance fee-related compensation Each year, the Nomination & Compensation Committee ("NCC") and the BoD allocate up to 40% of recognized performance fees via the Performance Fee Compensation Pool to a group of eligible employees. The pool is allocated to the individual employees via the Management Carry Plan ("MCP") (see (a) below) and the Management Performance Plan ("MPP") (see note 2.2.4.) 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 2023, performance fees recognized in the consolidated statement of profit or loss amounted to CHF 369.4 million (2022: CHF 268.9 million), of which CHF 106.3 million (2022: CHF 53.0 million) had been pre-allocated via the MCP (including social security expenses) and CHF 14.6 million (2022: CHF 7.4 million) via the MPP. In addition, CHF 0.2 million were released (2022: CHF 4.3 million were released) for social security costs in relation to the MPP and CHF 27.1 million (2022: CHF 51.5 million) were allocated via the Performance Fee Bonus Pool. In 2023, the payout amounted to CHF 72.4 million for these schemes (2022: CHF 238.5 million). Based on performance fees invoiced as of 31 December 2023, the Group expects a cash payout of CHF 96.1 million (2022: CHF 73.9 million) for these schemes in the first half of 2024. 2022 (a) Management Carry Plan ("MCP") allocation — — (1.2) (329.9) (184.5) (19.2) (534.8) (200.1) (334.7) (534.8) In 2011, Partners Group launched a dedicated performance fee-related compensation program, the MCP, whereby a percentage of the potential future performance fees from investments is allocated to eligible senior professionals (non-Executive Team members). The MCP was designed as a long term incentive plan which aligns the rewards for the Group’s professionals with investment performance and the Group’s overall financial success. It is discretionally granted to employees on an annual basis and is only paid out once the performance fees are collected by the Group. It is not a share-based incentive plan. (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 to be distributed among the employees. 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. Accounting policy: Performance fee-related compensation The promise to allocate up to 40% of recognized performance fees represents a constructive obligation towards the eligible group of employees. The Group recognizes expenses related to the MCP in personnel expenses when the related performance fees become sufficiently visible. This is in the period in which performance fees are recognized in the consolidated statement of profit or loss, which is generally before the effective collection of such performance fees. At the same time, the obligation in relation to the Performance Fee Bonus Pool is recognized. The corresponding liabilities are recognized as employee benefit liabilities in the consolidated statement of financial position. The part of these liabilities that is not expected to be settled before twelve months after the end of the annual reporting period is considered in non-current liabilities. Notes to the consolidated financial statements 2023 Annual Report 58 2.3.2. Defined benefit plans 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 Pension Fund is responsible for capital investments and pursues an investment strategy with a prescribed investment policy. 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. The foundation board of the Swiss Pension Fund introduced a plan amendment as of 1 January 2024, affecting both mandatory and non-mandatory plans in place. Until 31 December 2023, the monthly premiums to fund the Pension Fund’s benefits were split equally between the employer and the employees. Contributions varied by the age of the employees and ranged from 6-13% of the covered salary in total for employers and employees. These ranges were identical for all plans in place. Going forward, the employer contributions are increased to 6.5-13.5% of the covered salary for the base pension plan while employees will be able to choose between past levels of saving contributions and the new employer contribution level. For the non-mandatory plans, a flat contribution of 5% for both the employer and employees will be introduced. An additional change is the introduction of a coordination deduction. 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. The Group has additional immaterial post employment benefit obligations arising from other defined benefit plans. As of 31 December 2023, these amount to CHF 0.8 million (31 December 2022: CHF 1.2 million). Development of defined benefit asset/(obligation) — In millions of Swiss francs Present value of benefit obligation as of 1 January 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 2023 (92.8) (4.2) (2.1) (2.5) (0.1) (6.7) (0.8) (4.6) 3.6 (110.2) 2022 (97.9) (5.5) (0.3) 19.3 (1.7) (4.0) (2.7) (92.8) As a result of the plan amendment, the Group's defined benefit obligation increased by CHF 2.5 million (2022: nil). A corresponding past service cost was recognized in profit or loss during 2023. Present value of benefit obligation as of 31 December 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. Notes to the consolidated financial statements 2023 Annual Report 59 (10.3) Private markets Cash Public debt Public equity Semi-liquid Alternatives/other Total In millions of Swiss francs 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) before asset ceiling as of 31 December Impact of asset ceiling as of 1 January Included in profit or loss Interest income/(expense) Included in other comprehensive income Change in asset ceiling excluding amounts included in interest income/ (expense) Impact of asset ceiling as of 31 December Net defined benefit asset/(obligation) as of 31 December 2023 108.9 2.6 (0.1) 4.4 4.6 4.6 (3.6) 121.4 11.2 (17.3) (0.4) 17.7 — 11.2 2022 108.4 0.3 (0.1) 3.9 4.0 2.7 108.9 16.1 (17.3) (17.3) (1.2) Asset allocation for the Swiss Pension Fund — Asset allocation as of 31 December 2023 2022 9.5% 0.2% 34.9% 51.3% 2.5% 1.6% 7.1% 4.1% 28.0% 56.3% 3.4% 1.1% 100.0% 100.0% Principal actuarial assumptions for the Swiss Pension Fund — The calculation of the net defined benefit asset/(obligation) included the following principal actuarial assumptions: Principal actuarial assumptions as of 31 December 2023 2022 Discount rate Interest rate on retirement credits Average future salary increases Future pension increases Mortality tables used Mortality model used Assumed average retirement age female Assumed average retirement age male 1.5% 1.5% 2.0% 0.0% 2.3% 2.3% 2.0% 0.0% BVG 2020 (GT) BVG 2020 (GT) BFS 63 63 BFS 62 63 Notes to the consolidated financial statements 2023 Annual Report 60 Principal actuarial assumptions as of 31 December 2023 2022 Accounting policy: Pension schemes Group companies operate various pension schemes. The schemes typically 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 statement of profit or loss 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 Group’s net obligation/asset in respect of defined benefit plans is calculated by estimating the discounted amount of future benefits that employees have earned 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. The Group opted for the risk-sharing approach. Weighted average duration of defined benefit obligation (years) Assumed life expectancy at retirement age female Assumed life expectancy at retirement age male 12.4 24.7 23.0 12.7 24.6 22.8 Sensitivity analysis for the Swiss Pension Fund — 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) (7.3) 6.5 1.4 (1.5) 0.2 (0.2) (0.8) 0.7 0.2 (0.2) 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 2024 are estimated to be CHF 7.4 million. Notes to the consolidated financial statements 2023 Annual Report 61 3. Financial instruments and financial risk management 3.1. Financial assets As per reporting date, the Group’s financial assets were classified into the following categories: In millions of Swiss francs as of 31 December Note 2023 2022 Financial assets at amortized cost Cash and cash equivalents Fee receivables Other receivables Accrued revenue Short-term loans Non-current accrued revenue Other financial assets Total Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss Derivative assets Financial investments Assets held for sale Total Total financial assets 3.5.1. (b) 3.1.1. 3.1.1. 3.1.1. 3.5.1. (c) 3.1.1. 3.1.2. 3.1.3. 281.0 164.1 66.8 588.1 1'617.4 283.4 8.1 3'008.9 33.2 820.1 317.3 1'170.6 779.5 283.6 39.1 318.6 1'324.8 420.2 12.6 3'178.4 5.1 766.5 104.5 876.1 Accounting policy: Financial assets Financial assets other than trade receivables are initially recognized when the Group becomes a party to the contractual provisions of the instrument. The Group classifies its financial assets in the following measurement categories: • at amortized cost; or • at fair value through profit or loss None of the Group’s financial assets are classified as financial asset at fair value through other comprehensive income. 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, including any dividend and interest income. 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. 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 such financial instruments. 4'179.5 4'054.5 Equity instruments are subsequently measured at fair value through profit or loss. Notes to the consolidated financial statements 2023 Annual Report 62 3.1.1. Trade and other receivables and accrued revenue Movements in the Group's financial investments over the year were as follows: In millions of Swiss francs as of 31 December 2023 2022 In millions of Swiss francs 2023 2022 Fee receivables Other receivables Accrued revenue Trade and other receivables Non-current accrued revenue Total trade and other receivables and accrued revenue 164.1 66.8 588.1 819.0 283.4 1'102.4 283.6 39.1 318.6 641.3 420.2 1'061.5 Balance as of 1 January Additions Distributions/disposals Transfers from assets and liabilities held for sale10 Change in fair value Exchange differences Balance as of 31 December 766.5 108.2 (64.6) 13.2 58.2 (61.4) 820.1 715.2 138.3 (81.3) 19.4 (25.1) 766.5 Accounting policy: Trade and other receivables Trade and other receivables are initially recognized when they are originated and measured at their transaction price, less impairment losses. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance. The Group's financial investments were split into the following operating segments:11 In millions of Swiss francs as of 31 December 2023 2022 Note 3.5.1. details the Group’s credit risk assessment for trade and other receivables. 3.1.2. 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. In return the Group 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 statement of profit or loss. Private equity Private credit Real estate Infrastructure Financial investments 395.1 242.3 77.1 105.6 820.1 367.3 223.8 79.2 96.2 766.5 Accounting policy: Financial investments Financial investments are measured at fair value through profit or loss. The fair values of financial investments not listed at a public security exchange are determined by the Group 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. The fair values of quoted financial investments are based on current bid prices. Refer to note 3.4. for further explanations on valuation techniques and critical accounting estimates. 10 Reclassification of a former seed investment program that has been sufficiently diluted, such that the Group is no longer deemed to have control. Refer to Accounting policy: Assets and liabilities held for sale on page 63 for more details. 11 The Group renamed the operating segments and refined the segment allocation of financial investments related to its multi-segment investment programs. Comparative amounts have been re-presented. Notes to the consolidated financial statements 2023 Annual Report 63 3.1.3. Assets and liabilities held for sale 3.2. Financial liabilities The Group provides seed financing to certain early stage investment programs managed by the Group. As of 31 December 2023, assets and liabilities of six (2022: two) such investment programs were classified and presented as assets and liabilities held for sale. The assets and liabilities held for sale as of 31 December 2023 comprised of private equity, private credit and infrastructure related assets and liabilities: In millions of Swiss francs as of 31 December Assets held for sale Liabilities held for sale Assets and liabilities held for sale, net 2023 317.3 (0.7) 316.6 2022 104.5 (73.0) 31.5 Accounting policy: Assets and liabilities held for sale The Group may invest seed 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. 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"). Those investment programs deemed to be controlled under IFRS 10 are classified as held for sale and are presented in the separate line items 'assets held for sale' and 'liabilities held for sale'. 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 dilution. 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 3.4.). The underlying assets and liabilities of these investment programs are typically financial assets and liabilities valued at their adjusted net asset values. Assets and liabilities held for sale are measured at the lower of their carrying amount and fair value less costs to sell, whereby costs to sell are typically insignificant. In case of a subsequent remeasurement the carrying amounts of any assets and liabilities are remeasured in accordance with applicable IFRS Standards before the fair value less costs to sell of the disposal group is remeasured. 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 as investments at fair value through profit or loss and presented as financial investments in the consolidated statement of financial position. As per reporting date, the Group’s financial liabilities were classified into the following categories: In millions of Swiss francs as of 31 December Note 2023 2022 Financial liabilities at amortized cost Trade payables Goods and services received not yet invoiced Accrued revenue deductions Cash collateral for forward contracts Other payables Lease liabilities Debt Other long-term liabilities Total Financial liabilities at fair value through profit or loss Mandatorily measured at fair value through profit or loss Liabilities held for sale Derivative liabilities Other long-term liabilities Total Total financial liabilities 3.2.1. 3.2.1. 3.2.1. 3.2.1. 3.2.1. 5.3. 3.2.2. 3.1.3. 3.2.1. 50.0 38.2 121.8 41.2 16.5 105.0 1'130.0 59.0 1'561.7 0.7 7.1 0.2 8.0 59.7 37.8 87.1 1.1 22.1 77.5 799.4 62.8 1'147.5 73.0 2.9 0.3 76.2 1'569.7 1'223.7 Notes to the consolidated financial statements 2023 Annual Report 64 Accounting policy: Financial liabilities In millions of Swiss francs as of 31 December Financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument and are classified as measured at amortized cost or fair value through profit or loss. The latter is the case if it is a derivative liability 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 expenses, foreign exchange gains and losses and any gain or loss on derecognition is recognized in profit or loss. 3.2.1. Trade and other payables Current debt Non-current debt Total Debt The Group issued the following corporate bonds denominated in Swiss francs and listed on the SIX Swiss Exchange: ISIN Date of issue Fair value 31.12.2023 Fair value 31.12.2022 Face value in millions of CHF Coupon in % Year of maturity Issue price in % Redemption price in % 2023 299.9 830.1 1'130.0 2022 799.4 799.4 In millions of Swiss francs as of 31 December Note 2023 2022 CH0361532895 7 June 2017 297.9 292.7 300.0 0.150% 2024 100.052% 100.000% Trade payables Goods and services received not yet invoiced Derivative liabilities Accrued revenue deductions Cash collateral for forward contracts Lease liabilities Other payables 5.3. 50.0 38.2 7.1 121.8 41.2 14.3 16.5 59.7 37.8 2.9 87.1 1.1 14.9 22.1 Trade and other payables 289.1 225.6 3.2.2. Debt In millions of Swiss francs Balance as of 1 January Issuance of debt Accreted interest Balance as of 31 December 2023 799.4 330.4 0.2 1'130.0 2022 799.1 0.3 799.4 CH0419041287 21 June 2019 482.0 459.5 500.0 0.400% 2027 100.098% 100.000% CH1293714346 26 September 2023 CH1293714353 26 September 2023 154.2 190.7 150.0 2.250% 2028 100.528% 100.000% 180.0 2.400% 2033 100.132% 100.000% Accounting policy: Debt The Group's 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. 3.2.3. Capital commitments As of 31 December 2023, the Group had capital commitment contracts of CHF 1'083.1 million (2022: CHF 1'053.6 million), of which CHF 320.5 million (2022: CHF 323.2 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. Notes to the consolidated financial statements 2023 Annual Report 65 3.3. Finance income and expenses In millions of Swiss francs Note 2023 2022 3.4. 4.2. 4.2. 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) Finance income Interest expense calculated using the effective interest rate method Share of results of associates (Pearl) Bank charges and other finance expenses Net foreign exchange losses Finance expense Total net finance income and (expense) 3.4. Fair value measurement (a) Overview — 5.0 67.4 72.4 (12.9) (0.9) (4.6) (38.0) (56.4) 16.0 4.0 13.6 0.3 17.9 (7.1) (4.4) (8.7) (20.2) Derivative assets Assets held for sale (2.3) Financial investments Total Derivative liabilities12 Liabilities held for sale Other long-term liabilities Total Fair value is the price that would be received for 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. 12 Presented in the line item trade and other payables in the consolidated statement of financial position. The Group measures fair values using the following fair value hierarchy, which is classified by the observability of inputs used in making the measurements: • • • Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – 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 3 – inputs for assets or liabilities that are not based on observable market data (i.e. unobservable inputs). The following table shows the fair value hierarchy of the Group’s financial assets and liabilities measured at fair value: In millions of Swiss francs as of 31 December 2023 Level 1 Level 2 Level 3 Total 33.2 33.2 317.3 820.1 317.3 820.1 33.2 1'137.4 1'170.6 0.0 0.0 7.1 — 7.1 7.1 0.7 0.2 8.0 0.7 0.2 0.9 Notes to the consolidated financial statements 2023 Annual Report 66 The following tables show the reconciliation of all level 3 financial instruments in 2023 and 2022: In millions of Swiss francs as of 31 December Derivative assets Assets held for sale Financial investments Total Derivative liabilities13 Liabilities held for sale Other long-term liabilities Total 2022 In millions of Swiss francs Level 1 Level 2 Level 3 Total 0.0 0.0 5.1 104.5 766.5 5.1 871.0 2.9 73.0 0.3 73.3 — 2.9 5.1 104.5 766.5 876.1 2.9 73.0 0.3 76.2 Balance as of 1 January Additions Distributions/disposals Change in fair value14 Exchange differences Balance as of 31 December In millions of Swiss francs The carrying amounts for cash and cash equivalents, trade and other receivables, short-term loans, trade and other payables, and credit facilities drawn are expected to approximately equal 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 not materially differ from fair values given the outstanding balances and expected settlement dates, except for the corporate bonds whose fair values are disclosed in note 3.2.2. Balance as of 1 January Additions Distributions/disposals Change in fair value14 Exchange differences Balance as of 31 December 2023 Financial assets Financial liabilities 871.0 429.1 (146.0) 67.4 (84.1) 1'137.4 73.3 0.0 (70.1) 0.0 (2.3) 0.9 2022 Financial assets Financial liabilities 794.7 169.0 (81.7) 13.6 (24.6) 871.0 42.9 30.7 0.0 (0.3) 73.3 Change in fair value included unrealized gains of CHF 4.0 million (31 December 2022: unrealized losses of CHF 43.1 million) for recurring fair value measurements categorized within level 3 of the fair value hierarchy recognized in profit or loss attributable to balances held at the end of the reporting period. There were no transfers between levels. 13 Presented in the line item trade and other payables in the consolidated statement of financial position. 14 Presented in the line items finance income and finance expense in the consolidated statement of profit or loss. Notes to the consolidated financial statements 2023 Annual Report 67 (b) Financial investments and assets and liabilities held for sale (c) Valuation techniques used to determine fair values of underlying investments — — Financial investments (see note 3.1.2.) and assets and liabilities held for sale (see note 3.1.3.), 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 a 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 on 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 follow a standardized process which includes several iterations in the Specialist Investment Committee as well as Global Investment Committee. Depending on the investment threshold, the Specialist Investment Committee or the Global Investment Committee signs the Investment Advice. The Global Portfolio Committee supports both committees with regards to the portfolio allocation into Partners Group's programs and mandates. These committees decide whether or not new investments will be advised to the manager of the investment program. 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 the 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 enterprise value ("EV")/EBITDA ratios, 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. Notes to the consolidated financial statements 2023 Annual Report 68 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 to equity" method, or indirectly, by deriving the EV 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 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. (d) 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 unobservable 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: EV/EBITDA multiples, discount rates, capitalization rates, price/book as well as price/earnings ratios and EV/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 EV/EBITDA multiples. EV/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. (e) 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 Swiss francs as of 31 December Adjusted net asset value (1% increase) 2023 11.4 2022 8.0 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 values for its financial investments, and assets and liabilities held for sale. Notes to the consolidated financial statements 2023 Annual Report 69 Critical accounting estimate: Determination of fair values 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 a subjective assessment with varying degrees of judgment which takes 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 credit, real estate and infrastructure, and derivative assets or liabilities. 3.5. Financial 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 is required 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 Group Internal Audit. Group Internal Audit undertakes both regular and ad- hoc reviews of risk management controls and procedures and reports their findings directly 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. The Group has exposure to credit risk, market risk, and liquidity risk arising from its holding of financial instruments. 3.5.1. 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 are mainly comprised of banks, investment programs managed by the Group on behalf of its clients, and their underlying investments. In assessing the risks 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 impaired or written off. Notes to the consolidated financial statements 2023 Annual Report 70 The Group’s credit risk exposure arises from trade and other receivables and accrued revenue, 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. (a) Trade and other receivables and accrued revenue — 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 amounts as disclosed in note 3.1. 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 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 revenue is a financial instrument which typically relates to not yet invoiced fees and has a similar risk characteristic as fee receivables. Due to its nature, accrued revenue is considered not yet due. The Group’s trade and other receivables balance as of 31 December 2023 is composed of more than 350 customers (31 December 2022: more than 350) of which the largest represents less than 10% (31 December 2022: less than 10%). The historic default rate over the past 5 years has been consistently at 0.0% (2022: 0.0%) on the annual revenues and, as of the reporting date, no material receivables were overdue (31 December 2022: no material ones). Additionally, the Group is in direct discussion with the customers that have overdue outstanding amounts. Receivables and accruals are written off or reversed when there is no reasonable expectation of recovery. For the year ended 31 December 2023, the Group recorded CHF 0.1 million in expenses for such write-offs and reversals (2022: CHF 0.0 million). Based on its assessment as of 31 December 2023, the Group’s expected credit losses amount to CHF 0.0 million (31 December 2022: CHF 0.0 million). Therefore, the Group has not recognized an allowance as of 31 December 2023 (31 December 2022: none recognized). (b) Cash and cash equivalents — Cash and cash equivalents include cash on hand and call deposits held with banks and financial institutions and are measured at amortized cost. Bank overdrafts are shown in current liabilities in the consolidated statement of financial position. Cash and cash equivalents typically include balances with banks and financial institutions that feature a strong credit rating and are cancellable on sight. They are typically accessible within a day and at the latest within 35 days. The Group calculates a 12-month expected credit loss as a simplification for all cash and cash equivalents. Measurement The Group diversifies its cash and cash equivalents across various financial institutions to limit concentration of exposure with any one financial institution but is exposed to credit risk in the event of default of such financial institutions. It therefore evaluates each counterparty with an internal proprietary risk scoring which is scaled from 0-10, with 10 being the highest quality / lowest risk. Based on this rating, the Group determines the expected credit loss of its bank balances and, as a further layer of protection, assigns a rating-based maximum exposure limit per counterparty. Notes to the consolidated financial statements 2023 Annual Report 71 On that basis, the expected credit loss on cash and cash equivalents as at 31 December 2023 was determined as follows: In millions of Swiss francs as of 31 December Company internal proprietary risk scoring15 Link to international credit ratings16 Gross carrying amount % Gross carrying amount Weighted average expected credit loss rate 2023 Expected credit loss Scale 10-6: Low risk Scale 5-3: Fair risk Scale 2-1: Doubtful Scale 0: Loss Total 281.0 100.0% 0.0% 0.0 A B C D 281.0 100.0% 0.0 (c) Loans — Cash and cash equivalents amounted to CHF 281.0 million as of 31 December 2023 (31 December 2022: CHF 779.5 million). The risk-weighted average rating of the overall cash portfolio was ‘low risk’ as of 31 December 2023 (31 December 2022: ‘low risk’). The largest bank exposure represents 47% percent of cash and cash equivalents, with a rating of 10 (equivalent to A-1+ as per Standard & Poors) as of 31 December 2023 (31 December 2022: 38% with a rating of 10, equivalent to A-1+). The Group sets clear risk limits to minimize the negative impact that may arise from counterparty risk concentrations 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 its internal proprietary risk scoring. Based on its assessment as of 31 December 2023, the Group has not identified any material expected credit losses (31 December 2022: not material) and has not booked an allowance (31 December 2022: none). In millions of Swiss francs as of 31 December Company internal proprietary risk scoring15 Scale 10-6: Low risk Scale 5-3: Fair risk Scale 2-1: Doubtful Scale 0: Loss Total Link to international credit ratings16 Gross carrying amount % Gross carrying amount Weighted average expected credit loss rate A B C D 756.6 97.0% 22.9 3.0% 0.1% 0.4% 779.5 100.0% 2022 Expected credit loss 0.5 0.1 0.6 The Group’s loans are mainly composed of short-term loans typically granted to investment programs that are managed by the Group on behalf of its clients. This gives the Group insights into the financial situation of such borrowers. The majority of the Group’s short-term loans typically mature within one and three months. In addition, most of the loans are backed by the unfunded commitments of the investment programs' clients, which can be drawn upon to repay related loans. 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 the 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. The Group classifies its short-term loans into four categories (bridge loans, credit facility loans, NAV 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. 15 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. 16 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). Notes to the consolidated financial statements 2023 Annual Report 72 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 hence are of limited size compared to the overall investment portfolio and therefore typically have a low loan-to-value ratio. Loans to fully operational products. These are typically not backed by unfunded client commitments. Their loan-to-value ratio is limited to low levels. The NAV of the product defines the loan capacity. Total of all loans outstanding (per product) must not exceed 30% of the NAV. Loans to investment vehicles in an early stage with typically limited or no client commitments to pre-finance 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. NAV loans Low Pre-financing loans Fair 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 and/or there is no reasonable expectation for full recovery. Over the past years, the Group has not experienced any material credit losses. The following tables provide information about the exposure to credit risks and expected credit loss related to short-term loans at 31 December 2023 and 2022: In millions of Swiss francs as of 31 December 2023 Loan types Internal risk weight Nominal carrying amounts Stage 1 Nominal carrying amounts Stage 2 Nominal carrying amounts Stage 3 Expected credit loss17 Bridging loans NAV loans Pre-financing loans Total Low Low Fair In millions of Swiss francs as of 31 December 1'598.6 11.5 7.3 1'617.4 — — 1.7 0.0 0.2 1.9 2022 Loan types Internal risk weight Nominal carrying amounts Stage 1 Nominal carrying amounts Stage 2 Nominal carrying amounts Stage 3 Expected credit loss17 Bridging loans Credit facility loans Pre-financing loans Total Low Low Fair 1'289.3 7.0 28.5 1'324.8 0.8 0.0 0.2 1.0 — — As of 31 December 2023, the number of outstanding short-term loans was 735 (31 December 2022: 477) and the average amount per outstanding loan was CHF 2.2 million (2022: CHF 2.8 million). 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. No counterparty represented more than 11% (31 December 2022: not more than 20%) of the overall loan portfolio. In 2023, the Group received arm’s length compensation on short-term loans of CHF 85.0 million (2022: CHF 51.3 million) for the granting of short-term loans as part of its maintenance of investment programs, and hence as part of its operating activities. 17 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 within 12 months after the period-end date. Notes to the consolidated financial statements 2023 Annual Report Based on its assessment as of 31 December 2023, the Group has not identified any expected credit losses in relation to its short-term loans and has not recognized any allowance for credit losses (31 December 2022: none). 3.5.2. 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. (a) Foreign currency risk — The Group is exposed to transactional foreign currency risk mainly resulting 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 to its products and since 2023 also its employee benefit liabilities denominated in a currency other than the functional currency. Consequently, the Group’s net currency risk related to its financial position after hedging is limited to the line items listed in the foreign currency exposure sensitivity table further below. The Group applied the following currency exchange rates against the Swiss franc: Currency USD EUR GBP SGD Accounting policy: Foreign currency translation 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). 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. 73 2022 Closing rate Average rate 0.9254 0.9872 1.1130 0.6898 0.9547 1.0049 1.1792 0.6924 2023 Assets and liabilities of foreign operations are translated to Swiss francs at foreign currency exchange rates applicable at the balance sheet date. Revenues and expenses as well as cash flows of foreign operations are translated to Swiss francs at the average rate of the period. Currency Closing rate % change against 2022 Average rate % change against 2022 USD EUR GBP SGD 0.8415 0.9297 1.0723 0.6379 -9.1% -5.8% -3.7% -7.5% 0.8985 0.9714 1.1169 0.6691 -5.9% -3.3% -5.3% -3.4% 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. Notes to the consolidated financial statements 2023 Annual Report 74 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 as of 31 December 2023 2022 Foreign currency exposure USD CHF EUR CHF GBP CHF SGD CHF Others CHF USD CHF EUR CHF GBP CHF SGD CHF Others CHF (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 and its short-term borrowings under its syndicated credit facilities. Due to the short-term nature of these 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: Cash and cash equivalents 3.9 4.0 3.4 0.3 1.7 181.7 12.3 5.9 2.0 10.1 In millions of Swiss francs 2023 2022 Trade and other receivables Non-current accrued revenue 172.7 88.0 19.9 1.1 10.6 127.8 75.5 17.5 1.9 22.5 15.7 30.2 3.5 15.9 30.6 3.6 Other financial assets 0.8 0.0 0.8 0.0 Trade and other payables (25.9) (56.0) (5.4) (0.1) (8.8) (31.2) (39.9) (5.7) (0.5) (20.7) Employee benefit liabilities18 (131.9) Variable rate instruments Financial assets Cash and cash equivalents Short-term loans Total Financial liabilities Other long-term liabilities (11.6) (19.6) (0.2) (10.7) (16.1) (0.3) Cash collateral for forward contracts Net intercompany positions 100.8 36.1 (100.7) (117.4) (23.2) 51.2 118.7 (39.5) (63.5) (22.1) Credit facilities drawn Net exposure 255.6 83.5 (79.5) (116.1) (19.7) 202.8 181.9 (18.5) (60.1) (10.2) Total 281.0 1'617.3 1'898.3 (41.2) (240.0) (281.2) 779.5 1'316.2 2'095.7 (1.1) (270.0) (271.1) Sensitivity on net exposure 5% appreciation to CHF19 12.8 4.2 (4.0) (5.8) (1.0) 10.1 9.1 (0.9) (3.0) (0.5) Impact on profit before tax 12.8 4.2 (4.0) (5.8) (1.0) 10.1 9.1 (0.9) (3.0) (0.5) Total variable rate instruments 1'617.1 1'824.6 Fixed rate instruments Financial assets Short-term loans Long-term loans Other Total 0.1 2.1 6.0 8.2 8.6 4.4 8.2 21.2 18 Employee benefit liabilities do not form part of financial instruments but have been a significant source of foreign currency exposure until 2022. Since 2023, the respective position is hedged by using derivatives which is why it is no longer included in this table. 19 Other assumptions remain unchanged and a depreciation to CHF of 5% would have the converse effect. Notes to the consolidated financial statements 2023 Annual Report 75 In millions of Swiss francs Financial liabilities Lease liabilities Debt Total 2023 2022 (105.0) (1'130.0) (1'235.0) (77.5) (799.4) (876.9) 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 credit, real estate, or 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 derivative assets or liabilities whose 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. Total fixed rate instruments (1'226.8) (855.7) 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 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 volatility for each asset class. In millions of Swiss francs 2023 2022 Carrying amount Volatility Carrying amount Volatility In millions of Swiss francs 2023 2022 Financial investments20 Impact on profit before tax 16.2 (16.2) 18.2 (18.2) 100 bp increase 100 bp decrease 100 bp increase 100 bp decrease 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) mainly because of its interest in investment programs which are classified at fair value through profit or loss. Private equity Private credit Real estate Infrastructure Assets and liabilities held for sale Assets and liabilities held for sale Total 395.1 242.3 77.1 105.6 316.6 1'136.7 18.0% 8.0% 15.0% 12.0% 15.0% 367.3 223.8 79.2 96.2 31.5 798.0 18.0% 8.0% 15.0% 12.0% 8.0% 20 The Group renamed the operating segments and refined the segment allocation of financial investments related to its multi-segment investment programs. Comparative amounts have been re-presented. Notes to the consolidated financial statements 2023 Annual Report 76 Based upon the applied long-term volatility for the individual asset classes, the Group was exposed to the following price risk on profit or loss as per reporting date: 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 at the latest within 35 days. (a) Financing arrangements — The Group maintains the following lines of credit: As per reporting date, the Group had two unsecured credit facilities of CHF 622 million (31 December 2022: CHF 622 million) and CHF 585 million (31 December 2022: CHF 585 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 2022: 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. As of 31 December 2023, CHF 240 million of these facilities were drawn (31 December 2022: CHF 270 million), leaving an undrawn amount of CHF 997 million (31 December 2022: CHF 967 million). In millions of Swiss francs Financial investments Private equity Private credit Real estate Infrastructure Assets and liabilities held for sale Assets and liabilities held for sale Impact on profit before tax 3.5.3. Liquidity risk 2023 2022 71.1 19.4 11.6 12.7 47.5 162.3 66.1 17.9 11.9 11.5 2.5 109.9 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 performs a cash flow forecasting 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 typically holds its cash in current accounts or invests it in time deposits and money market deposits deemed to have Notes to the consolidated financial statements 2023 Annual Report 77 (b) Maturity of financial liability — The following table discloses the financial liabilities with their contractual maturities: In millions of Swiss francs as of 31 December 2023 2022 Trade payables21 Goods and services received not yet invoiced21 Derivative liabilities21 Accrued revenue deductions21 Cash collateral for forward contracts21 Lease liabilities Other payables21 Credit facilities drawn Debt Other long-term liabilities22 Note 3.2.1. 3.2.1. 3.2.1. 3.2.1. 3.2.1. 5.3 3.2.1. 3.2.2. Carrying amount Total (un- discounted) 6 months or less 6 - 12 months 13 - 24 months 25 - 60 months More than 60 months Carrying amount Total (un- discounted) 6 months or less 6 - 12 months 13 - 24 months 25 - 60 months More than 60 months 50.0 50.0 50.0 38.2 38.2 35.8 2.4 7.1 121.8 41.2 105.0 16.5 240.0 1'130.0 59.2 7.1 121.8 41.2 121.6 16.5 240.0 1'199.1 59.2 7.1 110.7 41.2 7.6 16.5 240.0 302.6 11.1 7.3 15.8 40.6 50.3 7.7 9.8 1.6 677.3 36.5 201.7 21.1 59.7 37.8 2.9 87.1 1.1 77.5 22.1 270.0 799.4 63.1 59.7 37.8 2.9 87.1 1.1 77.7 22.1 59.7 35.5 2.9 71.9 1.1 6.6 22.0 270.0 270.0 2.3 15.2 6.6 0.1 11.9 19.6 33.0 811.3 63.1 2.5 302.6 506.2 43.9 18.9 0.3 Unfunded commitments 3.2.3. 320.5 320.5 320.5 323.2 323.2 323.2 Total 2'129.5 2'215.2 1'132.0 28.5 27.2 754.4 273.1 1'743.9 1'756.0 795.4 24.2 358.4 544.7 33.3 21 Presented in the line item trade and other payables in the consolidated statement of financial position. 22 This line item includes long-term accrued liabilities related to the investment programs and other third parties. Notes to the consolidated financial statements 2023 Annual Report 78 4. Partners Group and related parties 4.1. Subsidiaries 4.1.1. Changes in scope of consolidation (a) Incorporation of new Group entities — Name (b) Liquidation of Group entities — Name Liquidation date Principal activity Partners Group Corporate Finance AG in Liquidation 28 January 2022 Financing/treasury Partners Group Finance SLP (EUR) L.P. Inc. 21 December 2023 Special limited partner Partners Group Finance SLP (USD), LLC 26 October 2023 Special limited partner Details of the Group’s operating subsidiaries as of the reporting date are set out below: Incorporation date Principal activity 4.1.2. Subsidiaries Partners Group (Hong Kong) Private Limited 17 October 2023 Investment manager Place of incorporation and operation Partners Group Management Secondary VIII S.à r.l. 18 September 2023 Investment manager Partners Group Management VII S.à r.l. 18 September 2023 Investment manager Partners Group Cayman Management Secondary VIII Limited 14 September 2023 Investment manager Name of the subsidiary Partners Group Cayman Management V Limited 25 August 2023 Investment manager Partners Group Cayman Client Access Management I Limited 10 August 2023 Investment manager Planeta Industries S.A. Compartment PGGLF II 5 May 2023 Financing/treasury Partners Group Treasury AG 1 February 2023 Treasury service provider Partners Group Operator Investments Holding AG 10 January 2023 Investment administrator Partners Group Management Direct Infra IV S.à r.l. 19 December 2022 Investment manager Partners Group Cayman Management Direct Infra IV Limited 4 November 2022 Investment manager Partners Group Management REO II S.à r.l. 5 July 2022 Investment manager Partners Group Cayman Management REO II Limited 27 May 2022 Investment manager Partners Group Management Direct Equity V S.à r.l. 16 May 2022 Investment manager Partners Group Cayman Management Direct Equity V Limited 11 April 2022 Investment manager Registered office Country of incorporation Share Capital in thousands Interest % Interest % 31 December 2023 31 December 2023 31 December 2022 Partners Group AG Baar-Zug Switzerland CHF 200 Dubai UAE USD 300 100% 100% 100 % 100 % Partners Group Advisors (DIFC) Limited Partners Group Japan Kabushiki Kaisha Partners Group Private Markets (Australia) Pty Ltd Tokyo Japan JPY 10'000 100% 100 % Sydney Australia AUD 200 100% 100 % Partners Group Prime Services Solutions (Philippines), Inc. Taguig City, Metro Manila Philippines PHP 13'734 100% 100 % Partners Group (Brazil) Investimentos Ltda. São Paulo Brazil BRL 795 Partners Group (Canada) Inc. Halifax Canada CAD 0 100% 100% 100 % 100 % Notes to the consolidated financial statements 2023 Annual Report 79 Place of incorporation and operation Name of the subsidiary Registered office Country of incorporation Share Capital in thousands Interest % Interest % Principal activity as of 31 December 31 December 2023 31 December 2023 31 December 2022 Financing/treasury Holding of land and property Partners Group (EU) GmbH Munich Germany EUR 32 St Peter Port Guernsey GBP 31'500 100% 100% 100 % Investment administrator 100 % General partner to investment programs General partner to investment programs Hong Kong Hong Kong HKD 0 100% General partner to investment programs Switzerland Switzerland Switzerland Guernsey Scotland Germany Place of incorporation and operation Number of subsidiaries 2023 2022 Partners Group (Guernsey) Limited Partners Group (Hong Kong) Private Limited Partners Group (India) Private Limited Partners Group (Luxembourg) S.A. Partners Group (Shanghai) Co., Ltd. Partners Group (Singapore) Pte. Ltd. Partners Group (UK) Limited Partners Group (USA) Inc. Mumbai India INR 29'615 100% 100 % Luxembourg Luxembourg EUR 1'350 100% 100 % Shanghai China CNY 12'363 100% 100 % Singapore Singapore SGD 1'250 London Delaware UK USA GBP 569 USD 75 100% 100% 100% 100 % 100 % 100 % 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 3.1.2.). The principal activities and their place of operation are summarized as follows: General partner to investment programs Cayman Islands Manager to investment vehicles Holding of land and property Investment services Management services to investment programs Manager to investment vehicles Manager to investment programs Financing/treasury Client access management Financing/treasury Management services to investment programs USA USA USA USA UK Luxembourg Luxembourg Guernsey Guernsey Guernsey 2 1 1 18 3 1 10 4 1 1 1 1 13 2 1 6 3 1 1 18 3 1 7 4 1 1 1 11 1 1 6 2 Notes to the consolidated financial statements 2023 Annual Report 80 Accounting policy: Basis of consolidation 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 shareholder meetings Also see Critical accounting judgement: Control assessment and accounting for investment programs in note 4.1.3. for more details on how the Group assesses its involvement with the investment programs that it manages. 4.1.3. 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. (a) 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 3.1.3. (b) Unconsolidated structured entities — The fair value of financial investments, as presented in note 3.1.2., represents the Group’s participation in unconsolidated investment programs. Critical accounting judgement: Control assessment and 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 accounting policy: Basis for consolidation in note 4.1.2.). 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 (refer to note 3.1.3.). For further details on the investment programs and their carrying amounts refer to note 3.1.2. Notes to the consolidated financial statements 2023 Annual Report 81 4.2. Investments in associates The Group accounted for investments in associates as of 31 December 2023 as summarized below: In millions of Swiss francs Pearl LGT 2023 2022 2023 2022 In millions of Swiss francs Pearl Holding Limited, Guernsey ("Pearl") LGT Private Equity Advisers, Liechtenstein ("LGT") Investments in associates In millions of Swiss francs Balance as of 1 January Redemption of shares (Pearl) Share of results (Pearl) Share of results (LGT) Exchange differences Balance as of 31 December Principal activity Private equity investments Asset management Fair value 9.5 0.4 Carrying value Ownership 28.2% 40.0% 9.5 0.4 9.9 Note 2023 2022 3.3. 1.1. 13.4 (1.9) (0.9) (0.1) (0.6) 9.9 Summary of financial information of the investments in associates - 100%: Pearl In millions of Swiss francs as of 31 December Total assets Total liabilities Equity 2023 2022 2023 2022 33.7 0.1 33.6 46.9 1.0 45.9 1.1 0.1 1.0 1.3 0.1 1.2 Revenues and other operating income Profit/(loss) for the period (1.7) (3.3) 2.7 0.9 0.8 (0.1) 1.1 0.0 The financial information is based on unaudited financial information as of the reporting date as received from Pearl and LGT. 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 divestment 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 3.3.), while the share of results of associates resulting from LGT is disclosed as other operating income (see note 1.1.). 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, which are presented as net finance income and expense in the consolidated statement of profit or loss (see note 3.3.). 18.3 (4.4) 0.3 0.0 (0.8) 13.4 LGT Notes to the consolidated financial statements 2023 Annual Report 82 Accounting policy: 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 these policies. The Group accounts for its interest in associates using the equity method. 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 statement of profit or loss. 4.3. Equity In effective number of shares Issued as of 1 January Issued during the period 2023 2022 — (d) Dividends 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 (2022: 26’700’000) at a nominal value of CHF 0.01 per share. The shareholders are entitled to receive dividends, as declared from time to time, and are entitled to one vote per share at the Company's shareholder meetings. (a) Legal reserves — Legal reserves comprise of 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 2023 (31 December 2022: CHF 218'100), consisting of CHF 217'100 (31 December 2022: CHF 217'100) for legal reserves from capital contributions and of CHF 1'000 (31 December 2022: CHF 1'000) for other legal reserves. (b) Treasury shares — Treasury shares are recognized at cost and presented separately within equity. At the reporting date, the Group held 719'717 (2022: 790'189) of the Company’s issued shares. The Group holds treasury shares to provide for existing share and option programs. (c) 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. 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 37.00 per share on 31 May 2023 (1 June 2022: CHF 33.00). As the Company’s treasury shares are not eligible for a dividend payment, the dividend distribution of CHF 987.9 million approved in May 2023 (May 2022: CHF 881.1 million) was not fully distributed, i.e. a total of CHF 959.2 million was paid out (May 2022: CHF 861.0 million). After the reporting date, the BoD proposes a dividend distribution of CHF 1'041.3 million (CHF 39.00 per share). (e) 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-based incentive plans. Furthermore, the Company has conditional capital of up to a maximum amount of CHF 40’050 (up to 4'005'000 registered shares). The conditional capital is exclusively reserved for share-based incentive plans of the Group. Notes to the consolidated financial statements 2023 Annual Report 83 There were no changes to 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 2023 and 2022. (f) Outstanding shares — In effective number of shares Balance as of 1 January Purchase of treasury shares Disposal of treasury shares Shares issued 26'700'000 The computation of the weighted average number of ordinary shares outstanding during the period is based on the following figures: Balance as of 31 December 26'700'000 Treasury shares 330'966 549'118 (89'895) 790'189 In effective number of shares Balance as of 1 January Purchase of treasury shares Disposal of treasury shares Shares issued 26'700'000 Balance as of 31 December 26'700'000 Weighted average number of shares outstanding during the period (360 days) Shareholders above 5% (in % of shares issued) Dr. Marcel Erni Alfred Gantner together with family members23 Urs Wietlisbach BlackRock Inc. 2023 Shares outstanding 25'909'811 (67'367) 137'839 25'980'283 25'929'206 in % 5.02% 5.02% 5.07% 5.02% Treasury shares 790'189 67'367 (137'839) 719'717 Shares held 1'339'694 1'339'689 1'353'294 1'340'353 23 The shareholder group was formed in 2023 based on a shareholders' agreement with Alfred Gantner acting as representative of the shareholder group. Weighted average number of shares outstanding during the period (360 days) Shareholders above 5% (in % of shares issued) Shares held Dr. Marcel Erni Alfred Gantner Urs Wietlisbach BlackRock Inc. 1'338'959 1'338'959 1'342'699 1'339'857 4.4. Related party transactions The Group has related party relationships with its investments in associates (see note 4.2.), pension funds (see note 2.3.2.) as well as with its key management personnel and their related parties. In 2023, associates purchased services from the Group in the amount of CHF 1.2 million (2022: CHF 1.2 million). As of 31 December 2023, loans to employees of the Group amounted to CHF 9.4 million (2022: CHF 5.5 million) and were included in other financial assets. The loans to related parties of the Group bear interest at market-related interest rates. 2022 Shares outstanding 26'369'034 (549'118) 89'895 25'909'811 25'544'839 in % 5.01% 5.01% 5.03% 5.02% Notes to the consolidated financial statements 2023 Annual Report 84 The Group purchased treasury shares at arm’s length from its shareholders employed by the Group as follows: At the relevant reporting date, the BoD and the Executive Team were holding the following number of options, non-vested shares and unrestricted shares: In effective number of shares Purchase of treasury shares from shareholders employed by the Group Average purchase price per share (in Swiss francs) 2023 22'582 1'014.39 2022 11'767 1'033.83 The Group is managed by the Board of Directors ("BoD") and the Executive Team of the Company. The total personnel expenses for the executive board members as well as the Executive Team of the Company are included in personnel expenses (see note 2.1.) and for non-executive board members in third-party service expenses which are disclosed in note 5.4. and amount to: Options and non-vested shares In effective number of options and non-vested shares as of 31 December Board members (vested options) Members of the Executive Team (options and non-vested shares) Total Share ownership (unrestricted) In millions of Swiss francs Board of Directors Short-term employment benefits Other compensation Share-based payment expenses Other long-term benefits (MCP) Post-employment benefits Total Executive Team Short-term employment benefits Other compensation Share-based payment expenses Other long-term benefits (MCP) Post-employment benefits Total Total Board of Directors and Executive Team 2023 2022 In effective number of shares as of 31 December Board members Members of the Executive Team Total 3.0 0.1 6.3 0.9 0.2 10.5 9.9 0.3 15.8 2.6 0.8 29.4 39.9 2.0 0.1 6.1 0.6 0.2 9.0 8.3 0.4 14.7 1.3 1.0 25.7 34.7 For further information in accordance with Art. 734d of the Swiss Code of Obligations, refer to note 2.12. and note 3.7. of the compensation report in the Annual Report 2023. 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 2.3 billion as of 31 December 2023 (31 December 2022: CHF 2.2 billion), of which CHF 1.9 billion (2022: CHF 1.7 billion) is committed to closed-ended programs and CHF 0.4 billion (2022: CHF 0.5 billion) to evergreen programs. 2023 4'570 133'793 138'363 2023 4'386'177 37'317 2022 4'570 101'090 105'660 2022 4'372'547 48'836 4'423'494 4'421'383 Notes to the consolidated financial statements 2023 Annual Report 85 5. Other disclosures 5.1. Property, equipment, and right-of-use assets In millions of Swiss francs 2023 Land Buildings Right-of-use assets Construction in progress Office furniture Interior fittings Equipment and IT fittings Total Land Buildings Right-of-use assets Construction in progress Office furniture Interior fittings Equipment and IT fittings Cost Balance as of 1 January 63.2 93.9 Additions Transfers Disposals Exchange differences Balance as of 31 December (0.6) 62.6 Accumulated depreciation Balance as of 1 January Depreciation Disposals Exchange differences 1.3 (8.1) 87.1 (8.0) (1.9) 0.6 117.5 52.3 (0.1) (9.4) 87.5 83.5 (1.3) (0.1) 160.3 169.6 (48.0) (16.2) 0.1 2.8 Balance as of 31 December — (9.3) (61.3) — 12.5 1.4 (1.0) 12.9 (8.7) (1.8) 0.8 (9.7) 33.1 13.8 (6.8) (2.2) 37.9 (21.9) (2.9) 6.8 0.9 14.8 3.3 (0.3) (1.1) 16.7 (12.3) (1.6) 0.3 0.8 422.5 154.3 — (7.2) (22.5) 547.1 (98.9) (24.4) 7.2 5.9 Carrying amount As of 1 January As of 31 December Impairment losses incurred 63.2 62.6 85.9 77.8 69.5 99.0 87.5 169.6 3.8 3.2 11.2 20.8 2.5 3.9 63.1 63.2 323.6 436.9 nil 56.1 69.5 34.3 87.5 5.0 3.8 9.3 11.2 2.2 2.5 256.4 323.6 nil (17.1) (12.8) (110.2) — — (8.7) (21.9) (12.3) (98.9) 2022 Total 335.9 87.7 — (0.9) (0.2) 422.5 (79.5) (21.5) 0.9 1.2 11.8 0.8 (0.0) (0.1) 12.5 (6.8) (2.0) 0.0 0.1 29.2 4.2 (0.0) (0.3) 33.1 (19.9) (2.2) 0.0 0.2 13.5 2.3 (0.9) (0.1) 14.8 (11.3) (2.0) 0.9 0.1 63.1 92.4 91.6 27.2 34.3 53.2 0.1 63.2 (1.3) 117.5 (0.0) 87.5 1.5 93.9 (6.0) (2.0) (0.0) (8.0) 86.4 85.9 (35.5) (13.3) 0.8 (48.0) Notes to the consolidated financial statements 2023 Annual Report 86 Accounting policy: Property, equipment, and right-of-use assets Asset class Useful life Nature and policy Buildings 30-50 years Office furniture 5 years Interior fittings 5-10 years Equipment and IT fittings 3-5 years Property and equipment are 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. Major renovations are depreciated over the remaining estimated useful life of the related asset or to the date of the next major renovation. Depreciation is calculated using the straight-line method. Land Indefinite Land is stated at cost. Right-of-use assets Typically the lease period Construction in progress Not yet depreciated Refer to note 5.3. for policies relating to lease accounting. Depreciation is calculated using the straight-line method. Construction in progress is stated at cost and transferred to the respective class when available for use. Notes to the consolidated financial statements 2023 Annual Report 87 5.2. Intangible assets and goodwill 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 Disposals Exchange differences Balance as of 31 December Carrying amount As of 1 January As of 31 December Impairment losses incurred 2023 Goodwill Acquired client contracts Software Contract costs Other intangible assets Total Goodwill Acquired client contracts Software Contract costs Other intangible assets 30.3 4.2 (2.3) 28.0 (0.2) 4.0 24.3 2.2 (7.0) (0.0) 19.5 (4.2) (20.5) (2.9) 7.0 0.0 0.2 97.2 4.5 (4.5) (4.8) 92.4 (59.3) (13.2) 4.5 3.6 11.8 (6.1) 167.8 6.7 (17.6) (7.3) 5.7 149.6 (9.2) (0.6) 6.1 (93.2) (16.7) 17.6 3.8 30.7 4.6 (0.4) 30.3 (0.4) 4.2 (4.6) 0.4 22.1 2.3 (0.1) 0.0 24.3 (17.0) (3.6) 0.1 (0.0) 74.8 23.2 (0.8) 97.2 (45.2) (14.8) 0.7 — (4.0) (16.4) (64.4) (3.7) (88.5) — (4.2) (20.5) (59.3) (9.2) (93.2) 30.3 28.0 — — 3.8 3.1 37.9 28.0 2.6 2.0 74.6 61.1 nil 30.7 30.3 — — 5.1 3.8 29.6 37.9 0.5 2.6 65.9 74.6 nil 2022 Total 141.3 28.2 (0.1) (1.6) 9.1 2.7 11.8 167.8 (8.6) (0.6) (75.4) (19.0) 0.1 1.1 Notes to the consolidated financial statements 2023 Annual Report 88 Accounting policy: Intangible assets and goodwill Accounting policy: Intangible assets and goodwill Intangible asset class Useful life Nature and policy Intangible asset class Useful life Nature and policy Goodwill Indefinite Acquired client contracts 3-5 years Software 3-5 years Contract costs 4-5 years Goodwill represents the future economic benefit arising from other assets acquired in a business combination that are not individually identified and separately recognized. It is measured 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. In case the Goodwill is negative, a gain on a bargain purchase is recognized immediately in net finance income and expense in the consolidated statement of profit or loss. Refer to details below on the Group's approach to impairment testing for Goodwill. Client contracts which the Group acquired and which are recognized as intangible assets are carried at cost less accumulated amortization and impairment losses. Amortization is calculated using the straight- line method. 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. Amortization is calculated using the straight-line method. Software- as-a-Service ("SaaS") contracts are only classified as intangible assets when the recognition criteria are fulfilled; otherwise, a SaaS is classified as service contract, for which costs are expensed as incurred. 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. Amortization is calculated using the straight-line method. Other intangible assets 3-10 years Other intangible assets not attributable to above asset classes are capitalized at cost and amortized using the straight-line method. 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. 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. Impairment testing for CGUs containing goodwill The carrying amount of goodwill as of 31 December 2023 of CHF 28.0 million (2022: CHF 30.3 million) has been allocated to the following cash generating units ("CGU"), which represent the lowest level within the Group at which goodwill is monitored for internal management purposes: • Goodwill of CHF 15.0 million (2022: CHF 16.5 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 real estate segment. • Goodwill of CHF 13.0 million (2022: CHF 13.8 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. For both CGUs, the free cash flow of the year 2023 exceeds its total identifiable net assets including goodwill. The Group does not expect this to change in the foreseeable future. No further indicators were identified, which could lead to an impairment. No impairment was recognized in 2023 (2022: none). Notes to the consolidated financial statements 2023 Annual Report 89 Accounting policy: Impairment testing on 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. 5.3. Leases 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 2023 2022 77.5 47.8 (0.9) 3.7 (15.8) (7.3) 105.0 14.3 90.7 105.0 60.8 32.9 (4.1) 1.3 (12.9) (0.5) 77.5 14.9 62.6 77.5 Accounting policy: Leases The Group, as a lessee, identified leases mainly relating to rental contracts for its offices (including parking). A right-of-use asset and its corresponding lease liability are recognized at the lease commencement date. It is measured at cost and depreciated from commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term of the respective lease contract, i.e. typically the lease period. 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. Right-of-use assets are presented in the statement of financial position as Property, equipment, and right-of-use assets; refer to note 5.1. for more information. The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low- value assets. Notes to the consolidated financial statements 2023 Annual Report 90 5.4. Other operating expenses The differences between the expected tax expense computed at the weighted average expected Group tax rate and the effective income tax expense were as follows: In millions of Swiss francs Third party services Property-related costs Administrative expenses Travel and representation expenses Other operating expenses 5.5. Income tax 5.5.1. Income tax expense In millions of Swiss francs Current tax expense Current year Adjustments for current tax of prior periods Total current tax expense 2023 2022 (31.6) (7.6) (46.7) (21.6) (26.8) (5.8) (47.1) (24.2) (107.5) (103.9) In millions of Swiss francs Profit before tax Weighted average expected Group tax rate24 Expected tax expense Non-tax-deductible expense and non-taxable income Applicable tax rates differing from expected rate Non-refundable withholding taxes Adjustments for current tax of prior periods Other impacts25 Income tax expense 2023 1'208.6 17.24% (208.4) 13.4 2.2 (7.7) (6.1) 1.4 2022 1'129.4 15.38% (173.7) 5.8 7.7 (11.9) (4.5) 52.1 (205.2) (124.5) Note 2023 2022 Partners Group is in scope of the OECD base erosion and profit shifting ("BEPS") Pillar Two rule set and will be impacted by new local tax legislation in countries where the Group has a taxable presence. Deferred tax expense/(income) Deferred tax (expense)/income, net relating to the origination and reversal of temporary differences 5.5.2. Total deferred tax (expense)/income Income tax expense (205.2) (124.5) (178.7) (6.1) (184.8) (20.4) (20.4) (170.1) (4.5) (174.6) 50.1 50.1 The Group has applied the International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12) issued by the IASB including the exception to recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. Pillar Two legislation has been enacted or substantively enacted in several jurisdictions in which the Group operates. In Switzerland where the Group currently has an effective tax rate below 15%, the new rules will be effective beginning 1 January 2024. Similar legislation has been enacted in UK, Germany, Luxembourg, and France, however, the Group's tax rate in these jurisdictions is above 15%. The Group has assessed its exposure to Pillar Two income taxes based on the most recent tax filings, country-by-country reporting, and financial statements for the constituent entities. Overall, it is expected that the Group's effective tax rate increases to around 18% to 19% in 2024 and beyond due to Pillar Two legislation. 24 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. 25 The 2022 number includes a one-time deferred tax impact resulting from the recognition of goodwill in the tax books of one of the Group's entities. Notes to the consolidated financial statements 2023 Annual Report 91 5.5.2. Deferred tax assets and liabilities (b) Analysis of deferred tax assets and liabilities — (a) Development of deferred tax assets and liabilities The following table shows the development of deferred tax assets and liabilities by category: — 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 2023 Financial investments Other non-current assets Defined benefit plans Share- based payment transactions Accrued variable compensati on & MCP Others Total Balance as of 1 January, net Changes recognized in profit or loss 2.2 (0.3) (5.3) (0.9) 46.0 49.7 103.4 (1.1) (20.3) (20.4) In Swiss francs as of 31 December Deferred tax assets Deferred tax liabilities Deferred tax assets/(liabilities), net In millions of Swiss francs 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 2023 105.1 (6.7) 98.4 2022 110.1 (6.7) 103.4 103.4 (20.4) 22.5 (1.7) (5.4) 98.4 101.0 50.1 (48.3) 1.2 (0.6) 103.4 Changes recognized in equity Changes recognized in other comprehensive income Exchange differences In millions of Swiss francs 2023 2022 Balance as of 31 December, net (0.2) 1.7 0.5 (5.7) (2.3) 32.8 (3.3) 41.6 (0.1) 29.3 10.4 2.2 22.5 0.4 (1.7) (0.0) (1.3) 22.5 (1.7) (5.4) 98.4 2022 Financial investments Other non-current assets Defined benefit plans Share- based payment transactions Accrued variable compensati on & MCP Others Total Balance as of 1 January, net Changes recognized in profit or loss 0.7 1.5 (4.9) (0.3) Changes recognized in equity Changes recognized in other comprehensive income Exchange differences Balance as of 31 December, net (0.0) 2.2 (0.1) (5.3) (1.2) 0.4 1.2 (0.0) 0.4 43.8 3.0 1.5 48.4 61.1 (2.9) (48.3) 0.5 10.4 (0.8) 46.0 (0.2) 49.7 101.0 50.1 (48.3) 1.2 (0.6) 103.4 Notes to the consolidated financial statements 2023 Annual Report 92 Financial investments 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). Other non-current assets Taxable temporary differences arise between the tax bases of property, equipment, and right-of-use assets as well as intangible assets and their carrying amounts in the consolidated financial statements. Defined benefit plans The Group recognizes deferred tax assets or liabilities as a result of applying IAS 19 (for further information see note 2.3.2.). Share-based payment transactions Taxable temporary differences arise (in accordance with IAS 12.68A) from the recognition of share- based payment expenses (see note 2.2.) 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 tax deductions is based on the share price at the date of exercise or vesting, or on 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 a one-time deferred tax impact resulting from the recognition of goodwill in the tax books of one of the Group's entities in 2022. As of 31 December 2023, the Group has undistributed earnings of CHF 67.4 million (31 December 2022: CHF 66.7 million) which, if paid out as dividends, would be subject to tax in the hands of the recipient. For CHF 50.8 million (31 December 2022: CHF 50.2 million) of this temporary difference, deferred tax liabilities amounting to CHF 2.5 million were recognized (31 December 2022: CHF 2.5 million). For the remaining temporary difference of CHF 16.6 million (31 December 2022: CHF 16.5 million), no further deferred tax liabilities were recognized as the Group controls the dividend policy of the respective subsidiaries, 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 full reversal of all remaining temporary differences would result in estimated additional income tax expenses of CHF 1.3 million (31 December 2022: CHF 1.1 million). Accounting policy: Income tax expense Income tax expense for the period is comprised of 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 reporting 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 reporting 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. 5.6. Subsequent events No events took place between 31 December 2023 and 15 March 2024 that would require material adjustments to the amounts recognized in these consolidated financial statements. 2023 Annual Report 93 Report of the auditors on the consolidated financial statements Report of the auditors on the consolidated financial statements 2023 Annual Report 94 Report of the auditors on the consolidated financial statements 2023 Annual Report 95 Report of the auditors on the consolidated financial statements 2023 Annual Report 96 Index to the financial statements of Partners Group Holding AG and report of the auditors 2023 Annual Report 97 98 99 101 108 109 Statement of profit or loss of Partners Group Holding AG Statement of financial position of Partners Group Holding AG Notes to the financial statements of Partners Group Holding AG Proposal by the Board of Directors of Partners Group Holding AG for the appropriation of available earnings Report of the auditors on the financial statements of Partners Group Holding AG 2023 Annual Report 98 In millions of Swiss francs Dividend income Other finance income Other service income Other income Total income Third party services General and administrative expenses Travel and representation expenses Finance expense Profit before tax Direct taxes Profit for the period Note 2. 3. 4. 2023 2022 958.3 106.9 0.0 0.1 998.6 76.2 0.2 2.5 1'065.3 1'077.5 (2.3) (9.8) (0.2) (186.8) 866.2 (1.9) (11.5) (0.2) (99.1) 964.8 866.2 964.8 Statement of profit or loss of Partners Group Holding AG Statement of financial position of Partners Group Holding AG 2023 Annual Report 99 In millions of Swiss francs as of 31 December Note 2023 2022 Assets Cash and cash equivalents Other current receivables Accrued income Total current assets Participations Total non-current assets Total assets Liabilities and equity Liabilities Current interest-bearing liabilities Other current liabilities Total current liabilities Non-current interest-bearing liabilities Other non-current liabilities Provisions Total non-current liabilities Total liabilities 5. 2. 6. 7. 8. 7. 9. 11.1 1'189.9 740.0 1'941.0 3'077.2 3'077.2 5'018.2 2'122.8 15.4 2'138.2 830.0 1.1 3.1 834.2 2'972.4 386.2 677.5 690.0 1'753.7 2'781.0 2'781.0 4'534.7 1'667.6 4.8 1'672.4 800.0 0.3 3.5 803.8 2'476.2 Statement of financial position of Partners Group Holding AG 2023 Annual Report 100 In millions of Swiss francs as of 31 December Note 2023 2022 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 0.3 0.2 0.0 1'946.5 866.2 (767.4) 2'045.8 5'018.2 0.3 0.2 0.0 1'941.0 964.8 (847.8) 2'058.5 4'534.7 10. Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 101 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. Participations — The Company applies the group valuation principle for the valuation of all its participations (see note 6.). 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 statement of profit or loss 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 740.0 million (2022: CHF 690.0 million) of dividend income related to the 2023 available earnings of its subsidiary Partners Group AG in 2023. As this dividend will not be paid until 2024, this amount has been recorded as accrued income. Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 102 3. Other finance income 6. Participations In millions of Swiss francs Interest income Foreign exchange gains Gain on treasury share transactions Total other finance income 4. Finance expense In millions of Swiss francs Interest expense Foreign exchange losses Loss on treasury share transactions Other finance expense Total finance expense 5. Other current receivables In millions of Swiss francs as of 31 December Third parties Subsidiaries Total other current receivables 1 Branch office. 2023 2022 Participations as of 31 December 2023 2022 33.1 73.4 0.4 106.9 2023 (54.5) (89.6) (41.5) (1.2) (186.8) 2023 134.3 1'055.6 1'189.9 14.7 60.8 0.7 76.2 Registered office Country of incorporation Share Capital in thousands Ownership and voting interest Partners Group (EU) GmbH Munich Germany EUR 32 100% 100% Partners Group (EU) GmbH, Paris Branch1 Paris France Partners Group (Luxembourg) S.A. Luxembourg Luxembourg EUR 1’350 100% 100% 2022 Partners Group (Luxembourg) S.A., Milan Branch1 Milan Italy (22.6) (41.9) (33.2) (1.4) (99.1) 2022 0.2 677.3 677.5 Partners Group (Singapore) Pte. Ltd. Singapore Singapore SGD 1’250 100% 100% Partners Group (Singapore) Pte. Ltd. Korea Branch1 Partners Group Private Markets (Australia) Pty. Ltd. Partners Group (Brazil) Investimentos Ltda. Seoul South Korea Sydney Australia AUD 200 100% 100% São Paulo Brazil BRL 795 100% 100% Partners Group (Canada) Inc. Halifax Canada CAD Partners Group Cayman Management I Limited Partners Group Cayman Management II Limited Partners Group Cayman Management III Limited Partners Group Cayman Management IV Limited George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD 0 0 0 0 0 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 103 Participations as of 31 December 2023 2022 Participations as of 31 December 2023 2022 Partners Group Cayman Management V Limited2 Partners Group Cayman Management Direct Equity V Limited Partners Group Cayman Management Direct Infra IV Limited Partners Group Cayman Management REO II Limited Partners Group Cayman Management Secondary VIII Limited3 Partners Group Cayman Client Access Management I Limited4 Partners Group (Shanghai) Co., Limited Partners Group Management (Deutschland) GmbH Registered office Country of incorporation Share Capital in thousands Ownership and voting interest Registered office Country of incorporation Share Capital in thousands Ownership and voting interest George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD George Town Cayman Islands USD 0 0 0 0 0 0 100% 100% 100% 100% 100% 100% 100% 100% 100% Shanghai China CNY 12’363 100% 100% Partners Group Finance CHF IC Limited Partners Group Finance EUR IC Limited Partners Group Finance GBP IC Limited Partners Group Finance SGD IC Limited Partners Group Finance USD IC Limited Partners Group Finance SLP (EUR) L.P. Inc.5,6 Partners Group Management (Guernsey) LLP5 St Peter Port Guernsey CHF St Peter Port Guernsey EUR St Peter Port Guernsey GBP St Peter Port Guernsey SGD St Peter Port Guernsey USD 0 0 0 0 0 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% St Peter Port Guernsey EUR — 100% St Peter Port Guernsey GBP 0 100% 100% Munich Germany EUR 25 100% 100% Partners Group Management Limited St Peter Port Guernsey EUR 3’640 100% 100% Partners Group (Guernsey) Limited5 St Peter Port Guernsey GBP 31’500 100% 100% Partners Group Access Finance Limited Partners Group Client Access 10 MP Management Limited Partners Group Client Access Management I Limited St Peter Port Guernsey USD 20 100% 100% St Peter Port Guernsey USD 0 100% 100% St Peter Port Guernsey EUR 20 100% 100% Partners Group Finance ICC Limited St Peter Port Guernsey CHF 0 100% 100% 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 St Peter Port Guernsey EUR 7’270 100% 100% St Peter Port Guernsey EUR 8’520 100% 100% St Peter Port Guernsey GBP 20 100% 100% St Peter Port Guernsey USD 13’820 100% 100% St Peter Port Guernsey EUR 4’820 100% 100% 2 The company was incorporated on 25 August 2023. 3 The company was incorporated on 14 September 2023. 4 The company was incorporated on 10 August 2023. 5 The company is indirectly held by Partners Group Holding AG. 6 The company was incorporated on 21 December 2023. Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 104 Participations as of 31 December 2023 2022 Participations as of 31 December 2023 2022 Registered office Country of incorporation Share Capital in thousands Ownership and voting interest Registered office Country of incorporation Share Capital in thousands Ownership and voting interest St Peter Port Guernsey USD 32’620 100% 100% Partners Group (Hong Kong) Private Limited8 Hong Kong Hong Kong HKD 0 100% St Peter Port Guernsey EUR 94’500 100% 100% Partners Group (India) Private Limited Mumbai India INR 29’615 100% 100% St Peter Port Guernsey EUR 42’020 100% 100% Partners Group Japan Kabushiki Kaisha Tokyo Japan JPY 10’000 100% 100% St Peter Port Guernsey USD 92’420 100% 100% LGT Private Equity Advisers AG7 Vaduz Liechtenstein CHF — 40% 40% St Peter Port Guernsey USD 13’000 100% 100% Partners Group Investment Management S.à r.l. Luxembourg Luxembourg EUR 12 100% 100% St Peter Port Guernsey EUR 54’020 100% 100% Partners Group Management I S.à r.l. Luxembourg Luxembourg EUR 4’531 100% 100% St Peter Port Guernsey AUD 78’020 100% 100% Partners Group Management II S.à r.l. Luxembourg Luxembourg EUR 5’231 100% 100% St Peter Port Guernsey USD 16’020 100% 100% Partners Group Management REO II S.à r.l. Luxembourg Luxembourg EUR St Peter Port Guernsey EUR 20 100% 100% Partners Group Management III S.à r.l. Luxembourg Luxembourg EUR 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 Private Equity Performance Holding Limited Pearl Holding Limited7 St Peter Port Guernsey EUR St Peter Port Guernsey EUR 10 — 100% 100% Partners Group Management Direct Infra IV S.à r.l. Luxembourg Luxembourg EUR 28% 28% Partners Group Management IV S.à r.l. Luxembourg Luxembourg EUR Pearl Management Limited St Peter Port Guernsey EUR 12’020 100% 100% Partners Group Management Direct Equity V S.à r.l. Luxembourg Luxembourg EUR Princess Management Limited St Peter Port Guernsey EUR 3’000 100% 100% Partners Group Management V S.à r.l. Luxembourg Luxembourg EUR 7 For associated companies refer to note 4.2. of the consolidated financial statements in the Annual Report 2023. 8 The company was incorporated on 17 October 2023. 12 31 12 12 12 15 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 105 Participations as of 31 December 2023 2022 Participations as of 31 December 2023 2022 Registered office Country of incorporation Share Capital in thousands Ownership and voting interest Registered office Country of incorporation Share Capital in thousands Ownership and voting interest Partners Group Management VI S.à r.l. Luxembourg Luxembourg EUR 20 100% 100% Partners Group Advisors (DIFC) Limited Dubai UAE USD 300 100% 100% Partners Group Management VII S.à r.l.9 Partners Group Management Secondary VIII S.à r.l.9 Luxembourg Luxembourg EUR Luxembourg Luxembourg EUR 0 0 100% 100% Partners Group (UK) Limited London UK GBP 569 100% 100% Partners Group (UK) Management Limited London UK GBP 20’527 100% 100% Partners Group Orbit S.à r.l. Luxembourg Luxembourg EUR 12 100% 100% Partners Group (USA) Inc. Delaware USA USD 75 100% 100% Partners Group Prime Services Solutions (Philippines), Inc. Taguig City, Metro Manila Philippines PHP 13’734 100% 100% Partners Group Management (Scotland) Limited10 Partners Group Management (Scots) LLP10 Partners Group Management (Scots) II LLP10 Edinburgh Scotland GBP Edinburgh Scotland GBP Edinburgh Scotland GBP 0 0 0 100% 100% 100% 100% 100% 100% Partners Group AG Baar-Zug Switzerland CHF 200 100% 100% Partners Group Treasury AG11 Baar-Zug Switzerland CHF 100 100% Partners Group Investment Services AG Partners Group Operator Investments Holdings AG12 Baar-Zug Switzerland CHF 100 100% 100% Baar-Zug Switzerland CHF 100 100% Partners Group Property AG Baar-Zug Switzerland CHF 100 100% 100% 9 The company was incorporated on 18 September 2023. 10 The company is indirectly held by Partners Group Holding AG. 11 The company was incorporated on 1 February 2023. 12 The company was incorporated on 10 January 2023. 13 The company was incorporated on 26 October 2023. Partners Group Colorado Propco, LLC Partners Group Finance SLP (USD), LLC10,13 Partners Group US Investment Services LLC10 Partners Group US Management CLO LLC10 Partners Group US Management LLC10 Partners Group US Management II LLC10 Partners Group US Management III LLC10 Delaware USA USD 101’140 100% 100% Delaware USA USD Delaware USA USD Delaware USA USD Delaware USA USD Delaware USA USD Delaware USA USD 0 0 0 0 0 0 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 106 7. Interest-bearing liabilities 9. Provisions In millions of Swiss francs as of 31 December Third parties Group companies Total interest-bearing liabilities Current interest-bearing liabilities Non-current interest-bearing liabilities Total interest-bearing liabilities 2023 1'370.0 1'582.8 2'952.8 2'122.8 830.0 2'952.8 2022 1'070.0 1'397.6 Provisions for compensation to board members Option grants 2'467.6 Management carry program 1'667.6 800.0 2'467.6 Social security expenses on management carry program Total provisions 10. Treasury shares 2.4 0.7 0.0 3.1 2.6 0.8 0.1 3.5 In millions of Swiss francs as of 31 December 2023 2022 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 7 June 2017 CH0419041287 21 June 2019 CH1293714346 26 September 2023 CH1293714353 26 September 2023 300.0 500.0 150.0 180.0 0.150% 0.400% 2.250% 2.400% 2024 100.052% 100.000% 2027 100.098% 100.000% 2028 100.528% 100.000% 2033 100.132% 100.000% 8. Other current liabilities In millions of Swiss francs as of 31 December 2023 2022 Accrued audit expenses Other accrued expenses Tax liabilities Other liabilities Total other current liabilities 0.4 13.1 0.3 1.6 15.4 0.4 3.4 0.1 0.9 4.8 Balance as of 1 January 2022 Purchase of treasury shares Disposal of treasury shares Balance as of 31 December 2022 Purchase of treasury shares Disposal of treasury shares Balance as of 31 December 2023 Number of shares Weighted average price in Swiss francs Total value in millions of Swiss francs 330'966 549'118 (89'895) 790'189 67'367 (137'839) 719'717 1'142.67 1'036.98 1'110.48 1'072.88 994.55 1'069.36 1'066.14 378.2 569.4 (99.8) 847.8 67.0 (147.4) 767.4 The Company had 1'133'230 (31 December 2022: 1'101'870) outstanding employee options and non- vested shares (see also note 2.2. of the consolidated financial statements in the Annual Report 2023). 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. Notes to the financial statements of Partners Group Holding AG 2023 Annual Report 107 11. Share and option grants to members of the Board of 13. Shareholders above 5% Directors and the Executive Team As of 31 December 2023, the Company had received notification of four significant shareholders whose voting rights exceed 5%. 2023 2022 Number of instruments Weighted average price in Swiss francs Total value in millions of Swiss francs Number of instruments Weighted average price in Swiss francs Total value in millions of Swiss francs Dr. Marcel Erni Shareholders above 5% as of 31 December Alfred Gantner together with family members14 795 1'116.50 112 1'116.50 49'878 187.47 0.9 0.1 9.4 841 925.00 0.8 Urs Wietlisbach BlackRock, Inc. 15'085 925.00 14.0 14. Full-time employees Board of Directors Shares Executive Team Shares Options 2023 5.02% 5.02% 5.07% 5.02% 2022 5.01% 5.01% 5.03% 5.02% 12. Commitments and contingent liabilities The Company did not have any employees in the reporting year or in the previous year. 15. Subsequent events In millions of Swiss francs as of 31 December Guarantees for subsidiaries 2023 1'237.0 2022 1'237.0 No events took place between 31 December 2023 and 15 March 2024 that would require material adjustments to the amounts recognized in these statutory financial statements. The Company and certain subsidiaries maintain the following lines of credit as of 31 December 2023 (see note 3.5.3. (a) of the consolidated financial statements in the Annual Report 2023): • CHF 622 million (31 December 2022: CHF 622 million) • CHF 585 million (31 December 2022: CHF 585 million) • CHF 30 million (31 December 2022: CHF 30 million) The amounts drawn by subsidiaries are guaranteed by the Company. As of 31 December 2023 there are CHF 240 million drawn (31 December 2022: CHF 270 million). 14 The shareholder group was formed in 2023 based on a shareholders' agreement with Alfred Gantner acting as representative of the shareholder group. 2023 Annual Report 108 In millions of Swiss francs as of 31 December 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 2023 866.2 1'946.5 2'812.7 (1'041.3) 1'771.4 Proposal by the Board of Directors of Partners Group Holding AG for the appropriation of available earnings 2023 Annual Report 109 Report of the auditors on the financial statements of Partners Group Holding AG Report of the auditors on the financial statements of Partners Group Holding AG 2023 Annual Report 110 Report of the auditors on the financial statements of Partners Group Holding AG 2023 Annual Report 111 Compensation Report Flora Zhao member of the Board of Directors and Chairwoman of the Nomination & Compensation Committee 2023 Annual Report 112 Dear clients, business partners, and fellow shareholders, We are pleased to present Partners Group's Compensation Report for 2023. 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 as well as to key strategy and environmental, social, and governance ("ESG") topics. During the year, the strength of the firm's integrated platform was highlighted by solid client demand for its bespoke solutions which translated into robust AuM growth. Nevertheless, the period was also characterized by lower transaction and exit volumes and longer client conversion periods. This resulted in Partners Group's Management Fee EBIT growth and investment activity falling below its targeted levels. These developments are reflected in this year's compensation considerations with a 29% year-on-year decrease to the Executive Team's 2023 long-term incentive ("LTI") pool. Looking back, we thank you for your support at the 2023 AGM of shareholders which resulted in our Compensation Report receiving an 89% approval rate. The NCC honors this feedback and strives for consistency in its approach to compensation, as we continue to make improvements into the future. Annual engagement with our shareholder's stewardship teams remains a priority for us as we see substantial value in these conversations. Last year, we engaged with shareholders representing over 15% of Partners Group's total share capital. We also met with proxy advisors to reflect on industry trends and gather further perspectives. We appreciate the positive feedback resulting from the changes we have made over recent years to the Board and Executive Team compensation frameworks. In 2023, we addressed two main areas which came up in our external engagement: 1. Enhance disclosure on Board attendance: the NCC further increased disclosure on Board attendance and provided additional details in the firm's 2023 Corporate Governance Report. Compensation Report 2023 Annual Report 113 plan participants elect a longer measurement period, higher performance thresholds will apply. The overall length of the plan remains 14 years. Reflecting on my second term as Chairwoman of the NCC, I value my conversations with you and I look forward to working together to ensure that Partners Group continues to be a trusted counterparty to our shareholders and stakeholders. On behalf of Partners Group and the NCC, I would like to thank you for your continued trust and support. Yours sincerely, Flora Zhao Chairwoman of the Nomination & Compensation Committee 2. Increase the proportion of performance- based LTI to ≥50%: the NCC has decided to amend the Share Participation Plan ("SPP"), representing 50% of an Executive Team member's LTI allocation. Starting in 2023, recipients were provided the choice to receive their SPP allocation in the form of either options or shares of Partners Group Holding AG ("PGHN"). Prior to 2023, SPP was automatically allocated in shares. With this change, performance-based LTI can now account for up to 100% of the total LTI grant. We believe this will further strengthen the long-term alignment of the Executive Team with shareholders' interests. In addition to the above, the NCC implemented a technical change to the 2023 Management Performance Plan ("MPP") which represents the other 50% of the Executive Team's LTI considerations. Starting in 2023, plan participants have an additional two-year optionality on when to transition from the first performance condition (Management Fee EBIT growth) to the second performance condition (generation of performance fees). They can now elect whether the first measurement period ends in year five, six, or seven after grant. Prior to 2023, the transition ended strictly five years after grant. For the avoidance of doubt, should Compensation Report 2023 Annual Report 114 1. Pay for performance and compensation governance Our compensation philosophy is based on 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. 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 not a substitute: 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 in the development of the firm's human capital. 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. 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 our firm continues to grow, we remain committed to delivering sustainable performance across economic cycles while focusing on what truly sets us apart: • Transformational investing: as an investment firm, we seek to generate attractive returns by capitalizing on thematic growth trends and transforming attractive businesses and assets 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 a lasting, positive impact for all of our stakeholders. 1.3. Compensation framework of the Executive Team The NCC strives for consistency in its approach to compensation and continues to separate the Executive Team's compensation into two types: total base compensation and Long-Term Incentives ("LTI"). Exhibit 1: Two types of Executive Team compensation 1.3.1. Total base compensation The total base compensation represents a stable compensation component. It is comprised of the cash base salary and the deferred cash payment. Cash base salaries, and by extension deferred cash payments, for Executive Team members are set dependent on an individual's function. • Cash base salary and related benefits: cash base salaries are paid on a monthly basis and are 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 regard to the major economic risks of sickness, accident, disability, death, and Total base compensation (cash-based) LTI programs (equity-based) Total compensation Based on function and responsibility Not variable, equal to cash base salary Start LTI assessment based on last year's LTI pool 50% Quantitative 50% Qualitative Results in adjustment factor 0.0x - 2.0x Determines the LTI pool of year under review Cash base salary & related benefits Deferred cash payments Share Participation Plan (50% of LTI) Management Performance Plan (50% of LTI) Granted either in options or in shares Step 1: Management Fee EBIT growth Step 2: Performance fees generation Compensation Report 2023 Annual Report 115 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 fundamentally believes that sustainable business success can only be achieved over many years by consistently taking the right decision. Therefore, the nominal LTI pool granted in the prior year serves as a basis to calculate the nominal LTI pool of the current year under review. The compensation factor is capped at a maximum of 2.0x the previous year's LTI pool on the upper end, preventing excessive upside for LTI participants, and no floor on the lower end, therefore ensuring no 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 the Executive Team's new joiners or leavers). A rating below 1 signifies underachievement while a rating above 1 represents overperformance. In the most severe case, a compensation factor of 0.0x means that the nominal LTI pool would be equal to zero.1 retirement. The level and scope of pension and insurance benefits provided are country-specific and influenced by local market practice and regulations. • Deferred cash payment: the fixed deferred cash payment is awarded at year-end to Executive Team members. It is not considered a variable short-term incentive and is intended to be stable and predictable. The deferred cash payment is set at 100% of the cash base salary. The NCC has the flexibility to adjust the deferred cash payment downwards (not upwards) in the rare case that the firm or an individual Executive Team member severely underperforms in the year under review. As of 31 December 2023, no adjustments have occurred. 1.3.2. Long Term Incentives (LTI) At Partners Group, LTI encourage true entrepreneurialism and a long-term perspective. In order to assess the nominal LTI pool for the year under review, we consider targets which reemphasize the firm's commitment to "pay for performance". Quantitative targets assess the firm's financial performance and investment development. Qualitative targets consider whether the firm’s strategy objectives (six strategic focus areas) and ESG targets were met. We outline in Exhibit 2 each target that contributes to the determination of the LTI in greater detail. SureWerx 1 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. Compensation Report 2023 Annual Report 116 Exhibit 2: Executive Team-level objectives e v i t a t i t n a u Q % Investment 0 5 platform % 0 5 Financials • Achieve sustainable expansion and scale of investment capacity • Create long-term value in portfolio assets • Focus on continuous growth through client satisfaction and therefore AuM advancement • Balance cost growth vs revenue growth Once the LTI pool of the current year under review is determined, it is split equally across our two LTI plans: Share Participation Plan ("SPP") and Management Performance Plan ("MPP"). They aim to further align the interest of plan participants with those of shareholders for the long term. Exhibit 3: Key characteristics of SPP and MPP • Deepen and expand thematic market insight in future growth sectors and SPP MPP Transformational investing Scale investment activity Differentiate with bespoke solutions % 0 8 Grow client base in US i s a e r a s u c o f c g e t a r t s x s s p u o r G s r e n t r a P i ' e v i t a t i l a u Q Organize for scale % 0 2 ESG expand pipeline of target assets • Drive institutional entrepreneurship at scale with portfolio asset boards at the center of vision, strategy, and accountability • Scale direct equity investments through growth of platform themes • Continue to scale private debt and integrated business platforms by becoming a premium solutions partner for our industry network • Further build out our leading position as a global provider of private market programs and tailored mandates for large institutional investors • Expand offering of bespoke evergreen solutions for small institutional investors and private individuals bespoke solutions • Grow incremental share of fundraising stemming from the US to be above 30% Instrument PGHN shares or options on PGHN2 Multi-component equity incentive scheme based on operating performance and performance fee generation Philosophy Promotes ownership mentality and drives operational performance of the firm Promotes profitable earnings growth and investment performance Dependent on instrument chosen: Performance condition • Yes, if options are selected (payouts only achievable through share price appreciation) Yes, payouts only achievable through 1. minimum growth of Management Fee EBIT achievement over a period of up to seven years and 2. generation of performance fees3 • Increase brand awareness and footprint in the US to win new clients with our • No, if shares are selected Develop next generation teams • Attract, retain, and develop diverse talent to realize full potential of private markets on behalf of all stakeholders • Promote leadership allowing for employee engagement with a culture of Vesting4 innovation • Better leverage technology to allow for scale and improved efficiency across the platform • Grow the business while realizing efficiencies of scale in our services platform Vests in years three (34%), four (33%) and five (33%), and is contingent on continued employment. It is subject to a minimum five-year tenure in the respective committee, prior to which there is a five-year cliff vesting. Options can only be exercised once vested. Vests linearly over a five-year period, subject to a minimum five-year tenure in the respective committee, prior to which there is a five-year cliff vesting Payout In PGHN shares or cash, dependent on conversion approach chosen by plan participant after vesting In PGHN shares, between years six and fourteen • Corporate level - create a positive and lasting impact for all stakeholders • Portfolio asset level - build better and more sustainable assets and businesses Allocation target5 50% 50% 2 SPP has been amended to allow recipients the choice between receiving their SPP allocation in the form of PGHN shares or alternatively as PGHN options. Disclosure on allocations can be found in the footnotes to Exhibit 16. 3 Starting with the 2023 MPP program, MPP recipients can elect to exercise their MPP right in years five, six, or seven. 4 For further information on vesting with regards to retirement please refer to section 2.6. of the Compensation Report. 5 For all Executive Team members, the NCC targets a 50% allocation to SPP and 50% to MPP. However, the total annual nominal allocation amount may vary from this target from one year to another, mainly due to rotating members of the Executive Team, retirement and or other cases where the full LTI allocation may not be needed. Compensation Report 1.3.2.1. SPP SPP encourages the Executive Team to create shareholder value through a rising share price. It not only fosters an ownership mentality but also incentivizes Executive Team members to drive the operational performance of the firm and protect its reputation. In 2023, the NCC amended the plan and provided all Executive Team members the choice of receiving 50% of their overall LTI in the form of either PGHN share options (with strike set "at the money") or PGHN shares. All Executive Team members who will continue to retain their roles in 2024 elected to receive PGHN share options. Choosing options as opposed to shares increases the proportion of performance-based LTI from 50% to 100% for an individual and further strengthens the long-term alignment with shareholders' interests as the upside potential increases when shareholders' value is created while also providing the necessary downside risk (without a share price increase, the intrinsic value of the options is zero). 1.3.2.2. MPP MPP reinforces a strong alignment of interests with clients and stakeholders through two independent conditions. Achieving only one condition while not the other results in no payout. 2023 Annual Report 117 Exhibit 4: Minimum Management Fee EBIT growth of 2% required for MPP value creation • • The first condition focuses on achieving profitable earnings growth over a time horizon of up to seven years. We measure the achievements through the growth rate of the firm's Management Fee EBIT.6 If the growth rate exceeds a defined threshold, plan participants can expect a future payout. If the growth rate falls below the threshold, no payout will occur. Plan participants are therefore encouraged to meet the minimum growth rate to lock in an intrinsic value of their LTI. This intrinsic value can only be realized through the second condition. The second condition unlocks the intrinsic value determined under the first condition. It focuses on generating sustainable investment returns over a time horizon of up to 14 years and derives from active value creation as well as the realization of investment opportunities in underlying client portfolios. The achievements are measured through realized performance fees stemming from a reference vintage year that is benchmarked against the firm's base case assumptions in the year when the LTI was granted. This comparison (actual performance fees realized vs. base case assumption) results in a factor that can be greater or less than one. For example, client portfolios that generate greater than expected returns have a factor greater than one. The reverse holds true: if returns for clients fall below certain return thresholds, then the factor decreases below one. In the worst-case scenario of insufficient value creation, the factor equals zero. In this case, the MPP component will not provide any payouts to recipients. Condition 1: profitable earnings growth = Management Fee EBIT growth — To become eligible for a potential payout, the firm's Management Fee EBIT must grow at a defined minimum rate over the measurement period (five to seven years)7. This rate is set with both a floor rate, below which the 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 2023 MPP, the minimum annual growth rate did not change compared to last year and was set at 2% p.a. The cap was again set at an annual growth rate of 15% p.a. as shown in Exhibit 4. Example: a Management Fee EBIT growth rate of 10% p.a. after the assessment period results in a factor of the initial grant value of 4.1x. If the initial grant value in 2023 was CHF 1.0 million, then the intrinsic value of the MPP would be CHF 4.1 million. In any case, the intrinsic value of the 2023 MPP participation right cannot exceed 7.4x of the grant fair value which is applicable for growth rates of 15% or higher (the cap). 6 The Management Fee EBIT is an alternative performance metric and is calculated as total EBIT defined by the International Financial Reporting Standards (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 2023 (p. 32 & 33). Adjustments to the Management Fee EBIT calculation may occur should accounting or other adjustments , including but not limited to foreign exchange impacts, make the comparison between the start and end year inconsistent. For the assessment of the growth rate, inter-period adjustments to the Management Fee EBIT will be performed to account for foreign exchange effects. 7 Starting with the 2023 MPP program, MPP recipients can elect to exercise their MPP right in years five, six, or seven. Compensation Report 2023 Annual Report 118 Condition 2: Performance fee component — The generation of attractive returns on behalf of our clients by capitalizing on thematic growth trends and building attractive businesses into market leaders remains a key growth driver. The NCC therefore integrated this element into the LTI consideration for Executive Team members via the firm's performance fee generation. Executive Team members can influence the intrinsic value, which was determined in condition 1, in terms of magnitude and timing of the payout in condition 2. Both depend on the returns generated in client portfolios over the long term and are compared against the firm's ex-ante defined model return targets from the year when the LTI was granted. The difference results in a factor that impacts the intrinsic value either to the positive or to the negative. Magnitude — The magnitude of the payout depends on the actual performance fees generated from the respective reference investment vintage.8 To assess whether the payout is higher or lower than the intrinsic value, the return targets set at grant are compared against the actual achievement on an annual basis. If 100% of the targeted performance is achieved, the intrinsic value from condition 1 will be paid out at 100% in the form of Partners Group shares (number "1" in Exhibit 6: Actual performance fee payout Exhibit 5). The total payout can be higher than the originally targeted nominal amount in the case of investment performance above target returns (number "2" in Exhibit 5), or lower than the originally anticipated nominal amount in the case of lower investment performance (number "3" in Exhibit 5). In the worst-case scenario, the amount can be zero, irrespective of the intrinsic value determined under condition 1. Exhibit 5: Actual MPP payout based on underlying investment performance Exhibit 7: MPP payout occurs as the performance fees of the underlying investment vintage materialize Timing — The MPP payout occurs as the performance fees of the underlying investment vintage materialize, as illustrated in Exhibit 7. The payout of the intrinsic value typically occurs over the time period from 6 years to 14 years after the MPP grant. The timing of the payouts is dependent on the time that the performance fees are earned and recognized.9 Any potential future entitlements to plan participants, based on performance fees received by the firm prior to the assessment of condition 2, will be accrued and paid out in subsequent years.10 To date, over the 13-year period from 2010 to 2023 actual payout has exceeded the ex-ante defined return target, set at 100%, on two occasions as displayed in Exhibit 6. While all reference investment pools are expected to continue to pay out performance fees over the many years to come, they also demonstrate the rigor of past target setting. 8 Investment period is defined as Q4 of the prior year until Q3 of the respective financial year under review. 9 The plan participants are paid out annually in a number of PGHN shares in the value of the payout. The price of the share is calculated based on the VWAP (volume-weighted average price) during the month prior to the payment date. 10 In case performance fees are received while the MPP plan still assesses its first performance condition (between year one and year five, six, or seven), then performance fees will be accrued and paid out at a later point in time. Compensation Report 2023 Annual Report 119 1.4. Equal pay analysis Exhibit 8: Partners Group's "We Pay Fair" certificate 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. On an annual basis, the human resources team performs an equal pay analysis, which has shown no pay inequalities in recent years, including 2023. The 2023 analysis was performed using the assessment methodology of the EDGE Certified Foundation.11 The analysis, which was independently audited by KPMG,12 was performed at a global level and confirmed that Partners Group’s pay gap is deemed insignificant.13 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. The firm performed the separate Swiss equal pay analysis again in 2023. 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 the certificate "We Pay Fair". 11 EDGE is a leading diversity and inclusion organization, offering a global standard with independent verification. 12 KPMG performed an audit on Partners Group's equal pay analysis for the five largest offices. In 2023, this included Partners Group offices located in the Philippines, Singapore, Switzerland, the United Kingdom, and the USA. 13 For a further breakdown please refer to the Corporate Sustainability Report which will be issued in April 2024. Partners Group's US headquarters Compensation Report 2023 Annual Report 120 1.5. Non-financial income / benefits disclosed according to Art. 732 - 735d of the Code of Obligations strategy that requires more employees to meet additional investment expectations from clients. The view of our Board also reflects the opinion of external shareholders who place a higher value on a lean balance sheet strategy. Art. 735 of the Code of Obligations 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 sheet.14 This aligns the interests of clients with those of the firm and its employees. For select direct investment programs, in line with the expectations of our institutional clients, the size of such investments increases 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 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 Partners Group's US headquarters 14 The firm does not generally earn any revenues on its own investments alongside clients as any fees levied are rebated. 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 Art. 735 of the Code of Obligations, 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 16 for the Executive Team and Exhibit 21 for the Board of Directors). The respective revenues not generated due to the fees waived for independent Board members amounted to approximately CHF 7 thousand and represented <0.001% of the firm's total revenue. The waived fees are therefore deemed immaterial to influence their independent judgment. 1.6. Bonus-malus system The Board of Directors (with the board of directors of any of Partners Group's legal subsidiaries, where required) may decide to reduce or fully forfeit unvested parts of the performance entitlements and/or not to (fully) pay amounts or deliver securities for vested performance entitlements allocated under the global long-term compensation plan, and/or to recover all or part of the amounts or securities that have been paid or delivered in the past in connection with vested performance entitlements ("claw-back") where the Board determines, in its own reasonable discretion, that the personal conduct of a Participant is hostile to Partners Group Holding AG or any or its subsidiaries, fraudulent or in material breach of applicable laws, regulations or internal policies and procedures (“misconduct”). For purposes of this paragraph, material breach occurs where a conduct poses a risk of serious legal, financial, or reputational harm to Partners Group Holding AG or any of its subsidiaries. In 2023, no action by the Board was taken in this respect. 1.7. Compensation governance 1.7.1. 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). Compensation Report 2023 Annual Report 121 1.7.2. 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 for promotion" and "compensation" proposals, as both are integral and closely interlinked. The nomination process ensures that the assessment and nomination of individuals are 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 ensures a seamless transition between a professional's development and compensation. The NCC fulfills the duties set out for it in the firm's Articles of Association.15 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. The approval authorities are displayed in detail in Exhibit 9. Exhibit 9: Approval authorities Compensation pools Budget/proposal Timing Approval Timing Board of Directors, Executive Team NCC Group-level budget NCC Q4 Q3 Department-level budget Chairman and CEO Q3 NCC approves Shareholders' AGM May (following year) Board of Directors ratifies Q4 Q4 Individual compensation Proposal Timing Approval Timing Chairman of the Board of Directors Chair of the NCC Members of the Board of Directors16 Q4 Board of Directors approves Q4 CEO NCC Executive Team Chairman and CEO Senior Members of Management Executive Team Q4 Q4 NCC approves, Board of Directors ratifies Members of Management and other professionals Department Heads Executive Team approves 15 For the full Articles of Association please see: www.partnersgroup.com/articlesofassociation. 16 In the case of approving the chairperson'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. 1.7.3. Committee members Flora Zhao, Anne Lester, Gaelle Olivier, 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. As of 31 December 2023, the members of the NCC were Flora Zhao (Chair), Anne Lester, and Dr. Martin Strobel. According to the independence criteria outlined in our Corporate Governance Report (section 3.1.), 1.7.4. Committee meetings and 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 2023, 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. Compensation Report 2023 Annual Report 122 Cash base salary (a) Deferred cash payment (b) Total cash compensation Executive Team Dependent on function Equal to cash base salary USD 1'000 USD 1'000 • 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 9. Partner and Senior Members of Management-level promotions and compensation are ratified individually. Function CEO Exhibit 10: Total base compensation for Executive Team members in 2023 (in thousands) 2. Executive Team Exhibit 11: LTI pool methodology for 2023 The NCC strives for consistency in its approach to compensation and continues to separate the compensation into two types: total base compensation and long-term incentives. Quantitative assessment (50%) Financial performance (50%) Investment development (50%) 2.1. Total base compensation Quantitative assessment multiple The total base compensation represents a stable compensation component. It is comprised of the cash base salary and the deferred cash payment. Cash base salaries, and by extension deferred cash payments, for Executive Team members are set dependent on an individual’s function. We outlined the NCC's approach to the total base compensation for the CEO and Executive Team members in Exhibit 10. Qualitative assessment (50%) Strategic objectives (80%) ESG targets (20%) Qualitative assessment multiple LTI pool multiple 2023 2.2. Total LTI Based on the overall performance assessment of the firm's two equally weighted quantitative and qualitative measures, the NCC suggested to decrease the overall LTI pool in 2023 by 29% to 0.71x last year’s pool. Exhibit 11 shows the calculation for this year's LTI pool. The Executive Team was granted nominal LTI amounting to CHF 19.0 million in 2023, adjusted for leavers and new team members (2022: CHF 23.9 million). Half of the value was granted in SPP and half in MPP. Exhibit 16 shows the total full-year compensation of the Executive Team in greater detail. 2.2.1. Quantitative measures (50% weighting) The 2023 performance evaluation based on the two quantitative input components resulted in a compensation factor of 0.28x. The assessment was based on the financial performance and the investment development outlined in greater detail below. USD 2'000 (a) + (b) 0.0x 0.56x 0.28x 1.17x 1.00x 1.13x 0.71x Cash base salary and pension benefits: the total cash base salary received by the Executive Team amounted to CHF 5.0 million (2022: CHF 4.1 million). The increase in cash base salary is due to normal salary and inflation adjustments and includes the total cash base salary for Wolf- Henning Scheider who was new to the Executive Team in 2023. Deferred cash payment: the total deferred cash payments received by the Executive Team amounted to CHF 5.0 million (2022: CHF 4.1 million). The increase in total deferred cash payments was directly linked to the increase in total cash base salaries. Compensation Report 2023 Annual Report 123 Financial performance (50% weighting) Exhibit 12: Quantitative assessment 2023 — Assessment: we assess financial performance based on the year-on-year change in Management Fee EBIT. Result: the Management Fee EBIT17 considered at the time by the NCC has decreased by 3% (target 10%). The financial performance therefore underperformed expectations and resulted in a compensation factor of 0.0x. 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 decreased by 44% compared to the prior year (target: equal to prior year). The investment development therefore underperformed expectations and resulted in a compensation factor of 0.56x (rounded). 17 Management Fee EBIT Q3 2023 Last Twelve Months ("LTM"). 2.2.2. Qualitative measures (50% weighting) The 2023 performance of the Executive Team, based on qualitative measures, resulted in a performance factor of 1.13x (2022: 1.16x). The assessment is outlined in greater detail below. It considered whether the firm made progress on its six strategic focus areas (80% weighting of 1.17x factor) as well as ESG targets (20% weighting on 1.00x factor). Strategy implementation (80% weighting) — Assessment: the NCC assessed the implementation of key strategic initiatives as well as continued business and operational excellence across the firm's platform and businesses. In 2023, the focus was on furthering the progress of the six strategic focus areas which make up the strategic roadmap implemented in 2021. Result: taken together, the Executive Team exceeded expectations, resulting in a performance factor of 1.17x (2022: 1.25x). The individual result was as follows: • Transformational investing (1.25x): the firm made significant progress with its transformational ownership review meetings. As frequent reviews of the existing portfolio are standard and essential, in 2023, these reviews were further institutionalized and provided investment teams guidance on how to reinforce the key principles of the firm's entrepreneurial governance framework. This ultimately resulted in different recommended action items across Partners Group’s direct portfolio companies. It was determined that under the leadership of the Executive Team, these reviews materially contributed to the continued double-digit EBITDA growth in our direct equity and infrastructure portfolios. Compensation Report 2023 Annual Report 124 • Scale investment activity (1.00x): the emphasis on thematic sourcing together with the build-out of the investment teams and the firm's external networks led to the further expansion of our investment pipeline and capabilities. In turn, this expansion contributed to establishing the foundation for future scaling of investment capacity and a buildup of our thematic pipeline across the firm. • Differentiate with bespoke solutions (1.50x): Partners Group's innovative bespoke client solutions were the largest contributor to fundraising at USD 13.1 billion (72% of assets raised). Within the scope of bespoke client solutions, mandates (USD 8.3 billion raised) are separate accounts that allow large institutional investors to achieve their long-term target allocations and other objectives for private markets. Evergreen programs (USD 4.8 billion raised) in turn have liquidity features that enable individual investors to access private markets. 2023 was characterized by longer client conversion periods and lower fundraising across the industry. The Executive Team outperformed the industry’s fundraising in large part through the disproportional client demand stemming from bespoke solutions. • Grow client base in US (1.00x): during the year, the US was a key component of the firm's growth strategy and it will remain a focus in future years. The Executive Team continued to execute on its plan to increase market share and brand awareness across the country. In 2023, 22% of assets raised were from the US. Progress made in 2023 to expand market share in the US was determined to be on track for the firm's 2025 goal to raise more than 30% of total assets raised from the US. • Develop next-generation teams (1.00x): the Executive Team continued the extensive review process launched in 2022 by implementing employee development key performance indicators and addressing areas of improvement. In 2023, the focused on a thorough assessment and development plan for the firm's next generation of leaders across its different businesses. • Organize for scale (1.25x): following a period of strong growth in headcount and various business units across the organization, the Executive Team conducted an in-depth review of its organizational set- up. During the review, the Executive Team identified pockets of complexity and reviewed roles and functions in order to remove process redundancies and duplicities. The outcome of the review, together with a raised bar on performance, is on track to result in a 10%+ leaner organization from 2023 levels (excluding future growth). The implementation and action stage will continue into 2024. ESG targets (20% weighting) — Assessment: Partners Group has a strong commitment to sustainability. Creating a lasting positive impact is one of the core principles of the firm's approach and thus it is crucial for it to be one of the factors in the Executive Team's overall performance assessment. In 2023, the Executive Team was assessed on its achievements and progress on the key targets set for 2023. throughout the year. The NCC assessed the Executive Team to be in line with expectations, resulting in a performance factor of 1.00x (2022: 0.80x). Additional details are highlighted below. • Environmental focus: at a corporate level, Partners Group aims to achieve net zero for the firm's Scope 1, Scope 2, and Scope 318 greenhouse gas ("GHG") emissions by 2030. At a portfolio level, the firm aims to reduce the GHG footprint of controlled private equity and private infrastructure investments by around 20% during its ownership and around 80% by 2035. In order to evaluate whether the firm is on track to achieve these long-term goals, the following achievements were considered for 2023: • • • • Established an internal carbon price of USD 50 per tCO2e Co-financed a global portfolio of low-carbon sustainable development projects to support biodiversity and address our GHG emissions at corporate level Developed a 13-year Direct Air Capture ("DAC") agreement to contribute to our goal of achieving net zero 92% of our controlled private equity and private infrastructure assets measured their GHG footprint; 80% have their GHG footprint assured after two years of ownership DC III, Vienna Executive Team met expectations as it Result: the Executive Team worked on projects to meet and progress on specific ESG targets 18 Corporate level Scope 3 emissions exclude Scope 3 emissions from "category 15: investments" (GHG Protocol), which are addressed at the portfolio level. Compensation Report 2023 Annual Report 125 In 2023, the Executive Team was evaluated as being on track to achieve the firm's 2030 net zero emissions, and separately the net zero emission goals for controlled portfolio assets based on the above achievements. • Social focus: at a corporate level the firm set a long-term, social focus, goal to become an impact leader in corporate responsibility to the benefit of its employees and by extension, at a portfolio level, to implement this same social focus across its portfolio assets. The Executive Team had the following targets and achievements during the year: • More than 30% of our board appointments were • • • diverse, and more than 60% of new companies had at least one diverse board appointment. Verified equal pay for equal work with no material deviations globally; achieved in 2023 Ensure 25 or more women are Partners, Managing Directors, or Board members by 2025 Updated Diversity & Inclusion Strategy and pursue targeted recruitment campaigns (across our workforce and Board) In 2023, the Executive Team continued to improve the social framework at both a corporate and portfolio level. Certain targets including having 25 woman in Partner, Managing Director, or Board member roles were determined to be not fully on track. • Governance focus: Partners Group aims to achieve ownership excellence by becoming a role model in entrepreneurial ownership and governance at a corporate level. At a portfolio level we aim to implement our corporate, best practice initiatives across our portfolio assets. Last year, the Executive Team had a set of four governance-focused targets: • • • • Advancing the preparation for current and future changes to ESG regulation and reporting standards Developing a Risk & Audit Committee and agenda, including cyber security, for our controlled assets Implementing mandatory e-learning for all employees and leaders covering compliance- related topics Establishing a global data protection framework based on internationally recognized principles The Executive Team made substantial progress on the above targets and was determined to have met expectations. 2.3. Compensation disclosures 2.3.1. CEO compensation David Layton, Partners and CEO of Partners Group, receives his total base compensation in USD. For the purpose of the below his compensation is expressed in CHF.19 His full- year 2023 total base compensation amounted to CHF 1.80 million (2022: CHF 1.72 million), of which CHF 0.90 million represents his base salary and CHF 0.90 million represents the deferred cash payment. The NCC increased his total base compensation by 4.6% in CHF year- over-year to reflect regular salary amendments and adjust for inflation. The total base compensation including other compensation, such as pension benefits and social security payments, amounted to CHF1.93 million (2022: CHF 1.83 million). David Layton's LTI grant decreased by 30% to 0.70x the previous year’s LTI grant, thus amounting to CHF 5.1 million in 2023 (2022: CHF 7.3 million), in line with the average LTI pool decrease of 29%. The grant amount was based on the qualitative assessment as outlined in Exhibit 2 as well as the quantitative assessment of the firm. David Layton received 50% of the LTI value in SPP and 50% in MPP. 2.3.2. Executive Team member The highest paid Executive Team member in 2023 was the firm's CEO, David Layton. 2.4. Compensation caps The granted nominal value of LTI is not to exceed 5.0x20 the total base compensation of an Executive Team member (cash base salary + deferred cash payment). For 2023, the ratio 19 In order to illustrate the USD based compensation in CHF, the compensation was converted into CHF with the average exchange rate USD/CHF for the year 2023. Source: Bloomberg. 20 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. between the committee members' LTIs compared to their total base compensation ranged from 0.34x to 2.81x. This range therefore falls below the compensation cap for the LTI and does not exceed 5.0x the total base compensation of an Executive Team member. 2.5. Minimum shareholding guidelines In 2021, the NCC introduced minimum shareholding guidelines for all Executive Team members. The minimum shareholding requirement is based on a multiple of the Executive Team member's cash base salary. The CEO must hold a minimum of 6.0x the cash base salary and Executive Team members must hold a minimum of 3.0x their respective cash base salary in Partners Group shares. Members 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 encompasses shares granted under the firm’s LTI plans as well as shares privately purchased by Executive Team members outside of these plans. Compensation Report 2023 Annual Report 126 Exhibit 13: 2023 Minimum Shareholding Guidelines Function CEO Executive Team Multiple of base salary 6.0x 3.0x Cash base salary (in thousands) Minimum shareholding requirement (in thousands) USD 1'000 USD 6‘000 Example: CHF 500 Example: CHF 1'500 Of the Executive Team's eight members, six members were found to be compliant with the new minimum shareholding guidelines. All of them have a tenure longer than five years in the Executive Team. Kirsta Anderson and Wolf- Henning Scheider were not compliant. Wolf- Henning Scheider who joined the Executive Team in 2023, has 5 years to become compliant. 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 2023 are shown in Exhibit 15. 2.6. Vesting on retirement for Executive Team and executive members of the Board At the time of retirement, all LTI, including past grants, for Executive Team members as well as Executive Board members received during their membership in the respective committee (Executive Team or Board) shall be deemed to have fully vested and become unrestricted, provided that the linear vesting phase has commenced, typically after a 5-year tenure in the respective committee. The vesting relief is subject to the following: the employee is considered a good leaver, agrees to sign a non- compete agreement and will have no new principal employment in the private markets industry, including but not limited to advisory work or board roles for private market managers. 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 an optimal outcome for the business and the employee nearing retirement. 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 2023, 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) 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 2023, 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. 2.10. Composition of Executive Team as of 31 December 2023 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. 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 2022. In 2023, in the absence of any additional cash payments or exceptions an early vesting exception was granted to a departing Executive Team member for the shares awarded under Partners Groups SPP. For avoidance of doubt, no further exceptions were granted to current Executive Team members during 2023. 2.9. Approved budgets of predecessor compensation programs and their payouts (2014 - 2017) 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 Compensation Report 2023 Annual Report 127 Group in 2015 and is a member of the Private Infrastructure and Global Investment Committees. She is also a member of the Board of Directors of the firm's portfolio companies EOLO, atNorth, Lifelink, and CapeOmega. In her new role, she will assume operational responsibility for Partners Group's infrastructure business, reporting to Mr. Jenkner. Exhibit 14: Composition of the 2023 Executive Team and function of its members Name Joined Partners Group in Nationality Birth year Position David Layton 2005 American 1981 Chief Executive Officer Kirsta Anderson 2020 American 1979 Chief People Officer Sarah Brewer 2008 British 1983 Global Co-Head Client Solutions Roberto Cagnati 2004 Swiss/Italian 1978 Chief Risk Officer, Head Portfolio Solutions Juri Jenkner 2004 German 1975 Andreas Knecht 2009 Swiss 1969 Wolf-Henning Scheider 2022 German 1962 Co-Head of Investments and Head Private Infrastructure Chief Operating Officer, General Counsel, and Head Corporate Operations Co-Head of Investments and Head Private Equity Executive Team members until 30 June 2023 Hans Ploos van Amstel 2020 Dutch 1965 Chief Financial Officer, Head Group Finance & Corporate Development Marlis Morin 2003 Swiss/Italian 1970 Head Client Services Kirsta Anderson, Partner and Chief People Officer, transitioned into an Advisory Partner function and rotated out of the Executive Team on 31 January 2024. Ms. Anderson joined Partners Group in 2020 to lead a cultural transformation designed to support the firm's continued growth and embed its HR Talent strategy into the broader Executive Team mandate. With the conclusion of the project, Ms. Anderson will continue to provide advisory services to Partners Group on employee engagement-related topics as well as to portfolio companies. 2.11. External Board mandates (audited) As of 31 December 2023, the following Executive Team members conducted business activities outside of Partners Group. • Wolf-Henning Scheider: Member of the Supervisory Board of Michelin Group (time commitment of two days per quarter). On 7 December 2023, Partners Group announced three further changes to the Executive Team. Juri Jenkner, Partner, took on the newly created role of President of Partners Group on 1 January 2024. In this role, Mr. Jenkner will drive the execution of corporate and business development initiatives, working closely with the Chief Executive Officer and Executive Chairman. He will remain a Global Investment Committee member and Co-Head of Investments, with overall responsibility for the firm's Private Infrastructure, Private Real Estate, and Private Debt businesses. Mr. Jenkner will also act as Chair of Partners Group's Private Infrastructure business. Esther Peiner, Partner, became Head of Private Infrastructure, and joined the Executive Team on 1 January 2024. Ms. Peiner joined Partners With Intelligence Compensation Report 2023 Annual Report 128 2.12. Share and option holdings by members of the Executive Team (audited) All share and option holdings of individual Executive Team members mentioned below are as of 31 December 2023 and include holdings from related parties.21 Exhibit 15: Share and option holdings by the Executive Team (31 December 2023 and 31 December 2022) (audited) Number of shares Non-vested shares Related party share holding Options Number of shares Non-vested shares Related party share holding 2023 Executive Team David Layton Kirsta Anderson Sarah Brewer Roberto Cagnati Juri Jenkner Andreas Knecht Wolf-Henning Scheider 10'691 533 2'919 1'663 12'051 9'128 332 7'552 2'670 2'229 4'725 3'609 12 100 20'969 35'182 25'252 8'935 13'335 9'335 Total Executive Team 37'317 20'785 112 113'008 Marlis Morin Hans Ploos van Amstel Total including former Executive Team members22 37'317 20'785 112 113'008 21 "Related parties" are (i) their spouse or equivalent, (ii) their children (under 18 years of age), (iii) any legal entities that they own or otherwise control, and (iv) any legal or natural person who is acting as their fiduciary. 22 Former members until 30 June 2023. 2022 Options 7'500 30'180 18'850 17'000 12 100 112 73'530 112 73'530 7'309 38 1'791 1'586 8'808 9'806 29'338 18'161 1'337 48'836 8'786 383 2'761 2'306 5'523 4'256 24'015 1'838 1'707 27'560 Compensation Report 2023 Annual Report 129 2.13. Executive Team compensation (audited) Exhibit 16: Executive Team compensation for the full year 2023 (audited) Exhibit 17: Executive Team compensation for the full year 2022 (audited) In thousands of Swiss francs David Layton, Chief Executive Officer Total Executive Team29 Former members of the Executive Team30 Total Executive Team incl. former members Other23 Subtotal cash compensation24 LTI (SPP)25 LTI (MPP)26 MCP27 Total28 Cash base salary Deferred cash payment Other31 Subtotal cash compensation LTI (SPP) LTI (MPP)32 Total33,34 2023 In thousands of Swiss francs 2022 Cash base salary Deferred cash payment 899 899 136 1'933 2'525 2'525 — 6'983 4'467 4'467 911 9'846 9'476 9'475 — 28'797 500 500 153 1'153 — — 2'022 3'174 David Layton, Chief Executive Officer and Head Private Equity Total Executive Team 4'967 4'967 1'064 10'999 9'476 9'475 2'022 31'971 859 859 116 1'834 3'625 3'625 9'084 4'141 4'142 1'343 9'627 12'328 11'575 33'530 23 Other compensation includes payments by Partners Group for pension and other benefits such as social security payments. 24 At the AGM in May 2022, shareholders approved a revised maximum total short-term cash compensation budget of CHF 10.00 million for the Executive Team for the fiscal year 2023. The budget includes cash base salary, pensions, other benefits, as well as a deferred cash payment and excluded social security payments. The actual compensation, excluding social security, received in 2023 for the Executive Team amounted to CHF 10.22 million, including a newly appointed Executive Team member who joined during the fiscal year 2023. In accordance with Art. 37 of Partners Group's Articles of Association, if new members of the executive management are appointed and take up their position with the firm after the annual shareholders’ meeting has approved the maximal total compensation to the members of the executive management for the fiscal year concerned, these newly appointed members of the executive management may be paid an additional amount for compensation periods that had already been approved by the shareholders’ meeting. This additional amount may, in aggregate for all newly appointed members of the executive management, not exceed 40% of the total compensation to the members of the executive management already approved by the shareholders’ meeting. With this taken into consideration, the amount awarded to Executive Team during 2023 did not exceed the short-term compensation approved by shareholders at the AGM in May 2022. 25 In 2023, SPP recipients were given the choice between receiving their SPP grant in the form of shares or options. Of the total 2023 SPP grant of CHF 9'476 thousand, CHF 9'351 thousand (99%) was granted in the form of options (49'878 options) and CHF 123 thousand in the form of shares (112 shares) . For further information please refer to note 2.2. of the notes to the consolidated financial statements. 26 The valuation of MPP is outlined in the notes to the consolidated financial statement for the year 2023 (note 2.2.4. of the notes to the consolidated financial statements). 27 Figures above are presented for illustrative purposes only to increase transparency. Actual values depend on the future performance of the investments attributable to the investment year 2023. The carry pool allocation above assumed an expected payout range from CHF 0 to CHF 3'033 thousand and used CHF 2’022 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 for the firm. 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. 28 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 1.5. of this report). Including these accrued but not yet paid items the total compensation for the entire Executive Team amounts to CHF 32'077 thousand, including CHF 106 thousand of waived fees. The total compensation of David Layton amounts to CHF 7'011 thousand, including CHF 28 thousand of waived fees. 29 Executive Team member's cash base salary, deferred cash payments, and other compensation are prorated for their time on the Executive Team. LTIs are shown for the full year. 30 Hans Ploos van Amstel, CFO and Marlis Morin, Head of Client Services: members until 30 June 2023. 31 Other compensation includes payments by Partners Group for pension and other benefits such as social security payments. 32 The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2022 (note 4.3.2. to the 2022 consolidated financial statements). 33 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 the 2022 Compensation Report). Including these accrued but not yet paid items the total compensation for the entire Executive Team amounts to CHF 33'621 thousand, including CHF 91 thousand of waived fees. The total compensation of David Layton amounts to CHF 9'113 thousand, including CHF 29 thousand of waived fees. 34 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 2022. 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 991 thousand, received in 2022 was in aggregate below the approved compensation budget. Compensation Report 2023 Annual Report 130 3. Board of Directors contribution, and time allocated to their Board mandates. 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 four executive Board members - the Executive Chairman and the three founders - and four 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 Executive Team in leading the operations and execution of the strategy. The Executive Chairman typically invests three to five days a week towards his mandate. The founders dedicate approximately two to three days a week to Partners Group's Board activities. Independent Board members usually devote one to two 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, 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 allocation changes for the executive members of the Board follow those of the Executive Team and decreased by 29% to 0.71x the amount granted in 2022. 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 (a detailed explanation can be found in the Corporate Governance Report). Due to their significant shareholding in the firm, executive members of the Board 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 in Exhibit 18. 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 contribution made by the members to the firm's business through their committee mandates. Independent Board members are each paid 50% in cash and 50% in restricted shares35 delivered in one installment during the respective board period. Independent Board members do not receive LTI or pension benefits. Exhibit 18: Compensation framework: independent Board members Description Compensation (in CHF) Board membership Regular Board work, including offsites; client AGM and other Board-related work Member: 100'000 RAC 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 preparation of meeting materials; other additional meetings; regular calls; and team interaction Chair: +150'000 Member: +100'000 NCC, OOC36 Additional Board meetings, including the preparation of meeting materials; other additional meetings; regular calls; and team interaction Chair: +100'000 Member: +50'000 IOC, COC, CDC37 Additional Board meetings, including the preparation of meeting materials; other additional meetings; regular calls; and team interaction CRT38 Larger subsidiary PG board Ad hoc Board committee work Waived fees 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 As required, additional Board committee work may be performed on an ad hoc basis. These specially created committees focus on value creation and other PG-related initiatives. These ad hoc committees will be disclosed in the Corporate Governance Report should they be formed in the year under review. Dependent on time allocation. Guideline: for each additional ~10% time allocation +100’000 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 further in the full-year 2023 Board compensation table. Chair: chaired by executive member Member: +100’000 Chair: chaired by executive member Member: +50’000 Member: +50’000 35 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 re-elected the selling restriction will be reduced to one year. 36 The Operational Oversight Committee (OOC) is led by an Independent Board member. 37 The Investment Oversight Committee (IOC), Client Oversight Committee (COC), Corporate Development Committee (CDC), and Operational Oversight Committee (OOC) are not expected to be led by Independent Board members. 38 The Crisis Response Team (CRT) is not expected to be led by Independent Board members. Compensation Report 2023 Annual Report 131 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, among other duties. As chair of the Investment Oversight Committee, the Executive Chairman drives forward investment strategy and oversight. He is also actively involved in the advancement of client-related projects as a member of the Client Oversight Committee. Mr. Meister is also Chair of the Corporate Development Committee, where he steers strategic projects, business development, and corporate development initiatives. At the core, he is 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 (2022: CHF 0.30 million). He received the same LTI compensation factor as the overall Executive Team (0.71x) and was granted LTIs amounting to CHF 1.60 million (2022: CHF 2.25 million). This brings his total compensation to CHF 2.0 million (2022: CHF 2.6 million), including pension benefits as outlined in Exhibit 21. 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 supporting the firm's business and corporate strategy via their respective Board committees (see Corporate Partners Group's US headquarters 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 (2022: CHF 0.30 million). With regard to their LTI allocation, each member was awarded an LTI grant of CHF 1.07 million (2022: CHF 1.50 million), entirely granted in MPP. This represents the same compensation factor (0.71x) as the overall Executive Team and the Executive Chairman of the Board and brings the total compensation of Dr. Marcel Erni to CHF 1.4 million (2022: CHF 1.86 million), Alfred Gantner to CHF 1.4 million (2022: CHF 1.86 million), and Urs Wietlisbach to CHF 1.4 million (2022: CHF 1.86 million), including pension benefits and waived fees, as outlined in Exhibit 21. 3.4. Independent members of the Board The independent Board members who focused on Board- and committee-related mandates at Partners Group are Anne Lester, Gaëlle Olivier, Dr. Martin Strobel, and Flora Zhao. 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 2023). In 2023 there were two notable changes to the roster of independent members of the Board. Joseph P. Landy stepped down from the Board; his retirement was made effective on 24 May 2023. Gaëlle Olivier was appointed to the Board at the Annual General Meeting of Shareholders on 24 May 2023. Independent Board members were compensated in accordance with their Board roles and time commitment to their respective mandates. • Anne Lester was paid an annual base Board fee of CHF 0.10 million. She additionally received CHF 0.10 million for being a member of the Risk & Audit Committee, CHF 0.10 million for being a member of the Client Oversight Committee, and CHF 0.05 million for being a member of the NCC. This brings her total compensation to CHF 0.35 million, including other compensation. • Gaelle Olivier was paid a base Board fee of CHF 0.10 million. She additionally received Compensation Report 2023 Annual Report 132 CHF 0.10 million for being a member of the Risk & Audit Committee and CHF 0.10 million for being the chair of the Operational Oversight Committee. This brings her total compensation to CHF 0.32 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 and received a fee of CHF 0.15 million. He additionally received CHF 0.10 million for being a member of the Corporate Development Committee, CHF 0.05 million for being a member of the NCC, CHF 0.05 million for his role on the Operational Oversight Committee, CHF 0.05 million for his membership on the Crisis Response Team, and CHF 0.05 million for his work on the local board of Partners Group's UK entity. In addition to his committee work, Martin Strobel received CHF 0.10 million for his work on the appointment of a new auditor, which required an extraordinary time commitment outside his scope as Chair of the RAC. This brings his total compensation to CHF 0.69 million, including other compensation. Flora Zhao 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. In • addition, Ms. Zhao received CHF 0.05 million for her role on the Singapore Board, for which she performed work in 2023 ad interim ahead of her official appointment effective 22 September 2023. This brings her total compensation to CHF 0.37 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 2023, no loans were outstanding to either current or former Board members or to a related party of a current or former Board member (31 December 2022: no loans were outstanding). 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 2022 and 2023. 3.7. Share and option holdings by members of the Board of Directors (audited) All share and option holdings of individual members of the Board of Directors and holdings from related parties39 mentioned below are as of 31 December 2023. Exhibit 19: Share and option holdings by members of the Board of Directors Board of Directors Steffen Meister, Executive Chairman Dr. Martin Strobel, Vice Chairman Dr. Marcel Erni Alfred Gantner Anne Lester Gaëlle Olivier Flora Zhao Total Board of Directors Joseph P. Landy40 Total including former Board of Directors members 351'775 923 1'339'694 1'339'689 347 135 320 4'386'177 39 "Related parties" are (i) their spouse or equivalent, (ii) their children (under 18 years of age), (iii) any legal entities that they own or otherwise control, and (iv) any legal or natural person who is acting as their fiduciary. 40 Former member as of 24 May 2023. Urs Wietlisbach 1'353'294 1'197 Number of shares Non-vested shares Related party share holding 2023 Options Number of shares Non-vested shares Related party share holding 350'675 2022 Options 4'570 631 4'570 1'338'959 1'338'959 190 1'342'699 163 1'197 1'197 4'570 4'372'276 1'197 4'570 271 4'386'177 1'197 4'570 4'372'547 1'197 4'570 Compensation Report 2023 Annual Report 133 3.8. External Board mandates (audited) As of 31 December 2023, the following members of the Board of Directors have other relevant Board mandates or Board mandates at Partners Group's portfolio companies. Exhibit 20: External Board mandates for members of the Board of Directors (31 December 2023) Member of the Board of Directors Other relevant mandates Board mandates at Partners Group portfolio companies Steffen Meister, Executive Chairman Crossiety AG (Co-founder and Chairman), FAIRTIQ AG, ETH Foundation's Board of Trustees Hearthside Food Solutions Dr. Martin Strobel, Vice Chairman Aviva plc, msg life AG Dr. Marcel Erni PG3 AG Family Office AMMEGA, Telepass Alfred Gantner PG3 AG Family Office Confluent Health, Esentia Energy Systems, Climeworks AG, Breitling SA (Chairman) Anne Lester Gaëlle Olivier Urs Wietlisbach Flora Zhao Smart USA CED Europe, SPVIE, Galytix Version 1 Blue Earth Capital (Chairman), Blue Earth Foundation, Entrepreneur Partners AG, PG3 AG Family Office Temasek International Pte Ltd. (Senior Advisor), Pavilion Energy Ltd, Greenext Holdings Pte Ltd., Greenext India Pvt Ltd KR Group (Board observer) Partners Group's US headquarters Compensation Report 2023 Annual Report 134 3.9. Board compensation (audited) Exhibit 21: Board compensation for the full year 2023 (audited) Exhibit 22: Board compensation for the full year 2022 (audited) In thousands of Swiss francs 2023 In thousands of Swiss francs 2022 Subtotal cash and share compensation MPP48 Total49,50 356 2'250 2'606 1'500 1'500 535 362 359 301 351 535 1'862 1'859 301 351 363 1'500 1'863 321 321 Cash Shares47 Other 300 250 300 300 150 175 300 150 — 251 — — 151 176 — 151 56 34 62 59 — — 63 20 Steffen Meister, Executive Chairman Dr. Martin Strobel, Vice Chairman Dr. Marcel Erni Alfred Gantner Anne Lester Gaëlle Olivier45 Urs Wietlisbach Flora Zhao Total Board of Directors Joseph P. Landy46 Total Board of Directors incl. former members Cash Shares Other41 Subtotal cash and share compensation42 300 325 300 300 175 150 300 175 2'025 59 — 326 — — 175 151 — 175 827 60 53 41 59 59 — 18 59 23 313 — MPP43 1'600 — 1'065 1'065 — — 1'065 — Total44 1'953 692 1'424 1'424 350 319 1'424 373 Steffen Meister, Executive Chairman Dr. Martin Strobel, Vice Chairman Dr. Marcel Erni Alfred Gantner Joseph P. Landy Anne Lester Urs Wietlisbach Flora Zhao 353 692 359 359 350 319 359 373 3'165 4'795 7'960 Total Board of Directors 119 — 119 Grace del Rosario-Castaño51 1'925 50 728 50 295 8 2'948 6'750 9'698 108 108 2'084 888 313 3'285 4'795 8'080 Total Board of Directors incl. former members 1'975 778 304 3'056 6'750 9'806 41 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 other compensation: Joseph P. Landy, Anne Lester, Gaëlle Olivier, Dr. Martin Strobel, and Flora Zhao. 42 At the AGM in May 2023, shareholders approved the maximum total short-term cash compensation budget of CHF 3.50 million for the Board of Directors until the next ordinary annual shareholders' meeting in 2024. 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 216 thousand, received in 2023 was in aggregate below the approved compensation budget. 43 The valuation of MPP is outlined in the notes to the consolidated financial statement for the year 2023 (note 2.2.4. of the notes to the consolidated financial statements). 44 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 1.5. of this report). Including these accrued but not yet paid items the total compensation for the entire Board of Directors amounts to CHF24'343 thousand, including CHF 16'263 thousand for waived fees. For those who had waived fees, the total technical non-financial income stemming from waived fees received by the Board of Directors are listed below: • Steffen Meister: CHF 100 thousand • Dr. Marcel Erni: CHF 3'603 thousand • Alfred Gantner: CHF6'067 thousand • Anne Lester: CHF 1 thousand • Dr. Martin Strobel: CHF 6 thousand • Urs Wietlisbach: CHF 6'486 thousand 45 Board member effective from the Annual General Meeting of shareholders on 24 May 2023. 46 Board member until the Annual General Meeting of shareholders on 24 May 2023. Cash, share, and other compensation is prorated for the time served on the Board during the respective fiscal year. 47 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 other compensation: Grace del Rosario-Castano, Joseph P. Landy, Anne Lester, Dr. Martin Strobel, and Flora Zhao. 48 The valuation of MPP is outlined in the notes to the consolidated financial statement for the year 2022 (note 4.3.2. to the 2022 consolidated financial statements). 49 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 the 2022 Compensation Report). Including these accrued but not yet paid items the total compensation for the entire Board of Directors amounts to CHF23'076 thousand, including CHF 13'270 thousand for waived fees. For those who had waived fees, the total technical non-financial income stemming from waived fees received by the Board of Directors are listed below: • Steffen Meister: CHF 97 thousand • Dr. Marcel Erni: CHF 4'118 thousand • Alfred Gantner: CHF4'569 thousand • Anne Lester: CHF 1 thousand • Grace del Rosario-Castaño: CHF 1 thousand • Dr. Martin Strobel: CHF 6 thousand • Urs Wietlisbach: CHF 4'478 thousand 50 At the AGM in May 2022, shareholders approved the maximum total short-term cash compensation budget of CHF 3.50 million for the Board of Directors until the next ordinary annual shareholders' meeting in 2023. 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 157 thousand, received in 2022 was in aggregate below the approved compensation budget. 51 Board member until 25 May 2022. Compensation Report 2023 Annual Report 135 Compensation Report 2023 Annual Report 136 Corporate Governance Report 2023 Annual Report 137 Partners Group is committed to effective corporate governance for the benefit of its shareholders, clients, employees, and other stakeholders with the core principles of entrepreneurial governance, accountability, and transparency. Partners Group has entities in various jurisdictions regulated by, including but not limited to, the Swiss Financial Market Supervisory Authority, the US Securities and Exchange Commission, the United Kingdom Financial Conduct Authority, the Monetary Authority of Singapore, the Luxembourg Commission de Surveillance du Secteur Financier, and the German Bundesanstalt für Finanzdienstleistungsaufsicht. Partners Group's governance ensures compliance with all rules and regulations issued by the regulators in the jurisdictions in which each of its entities operates. Partners Group writes 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. Any references and weblinks to the articles of association of Partners Group Holding AG in this Corporate Governance Report are to the English version of the articles of association. Please note that the official, binding version of the articles of association of Partners Group Holding AG is in German only and the English version is an unofficial translation thereof. The official German version is also available on the website of Partners Group under www.partnersgroup.com/ articlesofassociation_DE. The Corporate Governance Report contains information on the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. Group structure and shareholders Capital structure Board of Directors Executive Team Compensation, shareholdings, and loans Shareholders’ participation rights Changes of control and defense measures Auditors Information policy 10. Quiet periods 11. Non-applicability/negative disclosure Corporate Governance Report 2023 Annual Report 138 Partners Group legal group structure 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 the 'Board' or 'Board of Directors'. 1 2 3 4 5 Formed for the purpose of purchasing, construction, maintenance, or management of land and property (non-investment-related) Formed for the purpose of providing invoice handling, cash management, cost recharging, and other related administrative services Formed for the purpose of purchasing and holding predominantly minority investments in real estate operating companies Formed for the purpose of providing treasury services, namely cash pooling and cash management Managed by Partners Group (Guernsey) Limited, its General Partner Source: Partners Group, as of 31 December 2023. 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. Corporate Governance Report 2023 Annual Report 139 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 legal group structure as of 31 December 2023, whereas the chart below provides an illustration of the operational group structure as of 31 December 2023. The composition of the Executive Team changed throughout 2023 with all changes effectively completed as of 31 January 2024. Refer to section 4.1 for further details on Executive Team changes. For more details on segment reporting please refer to note 1.2. of the consolidated financial statements for the years ended 31 December 2023 and 2022 in the Annual Report 2023. Operational group structure (as of 31 December 2023) 1.1.2. Listed companies belonging to the Group 1.1.3. Non-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 2023 was CHF 32.4 billion. All other group companies are privately held. For detailed information on the non-listed subsidiaries of Partners Group Holding AG, including names, country of incorporation, registered office, share capital, and ownership interests, please see note 6. of the financial statements of Partners Group Holding AG for the years ended 31 December 2023 and 2022 in the Annual Report 2023. 1.2. Significant shareholders Partners Group Holding AG has the following significant shareholders within the meaning of Art. 120 para. 1 of the Financial Market Infrastructure Act (FinMIA) holding over 3% of the shares and voting rights of Partners Group Holding AG as of 31 December 2023. Significant shareholders (In %; as of 31 December 2023): Urs Wietlisbach, Schindellegi, Switzerland Marcel Erni, Zug, Switzerland Alfred Gantner, Meggen, Switzerland, together with family members1 BlackRock, Inc., New York (NY), USA (Mother Company) 5.07% 5.02% 5.02% 5.02% As of 31 December 2023, Partners Group held 719'717 treasury shares, corresponding to 2.70% of the total share capital. All disclosure notifications according to Art. 120 et seqq. of the Financial Market Infrastructure Act, pertaining to shareholdings in Partners Group Holding AG, can be found on the SIX Exchange Regulation homepage: https:// www.ser-ag.com/en/resources/notifications- market-participants/significant- shareholders.html#/. 1 The group is based on a shareholders agreement with Alfred Gantner acting as representative of the group. Further details on the group members can be found on the SIX Exchange Regulation webpage: https://www.ser-ag.com/en/resources/notifications-market-participants/significant-shareholders.html#/shareholder-details/TBNCU00018 Corporate Governance Report 2023 Annual Report 140 1.3. Cross-shareholdings Partners Group has no cross-shareholdings of 5% or more with another company or group of companies. 2. Capital structure 2.1. Capital The issued nominal share capital of Partners Group Holding AG 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. Capital band and conditional share capital As of 31 December 2023, Partners Group Holding AG had no capital band (Kapitalband). Prior to 1 January 2023 (and the abolition of the authorized capital (genehmigtes Kapital) under Swiss law), Partners Group Holding AG did not have any outstanding authorized capital. The introduction of a capital band would have to be approved by the general meeting of shareholders with a qualified quorum of two- thirds of the votes represented at such meeting and a majority of the nominal value of shares represented at such meetings. As of 31 December 2023, the following conditional share capital (bedingtes Kapital) 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 preemptive 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. See also Art. 3a of the articles of association (available at www.partnersgroup.com/ articlesofassociation). 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 not issued (non-voting) participation certificates (Partizipationsscheine). 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 www.partnersgroup.co m/articlesofassociation). The shares have been issued in the form of intermediated securities (Bucheffekten). 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. With the exception of the treasury shares held by the company, 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. Each share is entitled to dividend payments, the amount of which is determined based on the nominal value of each such share. For details regarding shareholders' subscription rights (and exclusion of subscription rights) please refer to Art. 8 of our articles of association (available at www.partnersgroup.com/ articlesofassociation). 2.5. Dividend-right certificates Partners Group has not issued any dividend- right certificates (Genussscheine). 2.6. Limitation on transferability, and nominee registration Transferees of shares will, upon request, be recorded in the share register as shareholders with voting rights if they declare explicitly that (i) they have purchased these shares in their own name and for their own account, (ii) no agreements exist regarding the redemption or the return of these shares, and (iii) they bear the economic risk associated with the shares. 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'). Nominees may be entered in the share register with voting rights for a maximum of 5% of the total nominal share capital entered in the commercial register and may be allowed to exceed this limit if they disclose the names, addresses and shareholdings of the persons on account of whom they are holding 0.5% or more of the share capital entered in the commercial register. The Board of Directors concludes Corporate Governance Report 2023 Annual Report 141 agreements with such Nominees in relation to disclosure requirements, representation of shares, and exercise of voting rights. 2.7. Bonds, convertible bonds, and options In addition, the Board of Directors may decline a request for registration as shareholder in the share register with voting rights in the share register or the establishment of a usufruct if the transferee would have at its disposal more than 10% of the total nominal share capital of Partners Group Holding AG. If shares have been acquired due to inheritance or matrimonial property law, the transferee may not be declined. If the registration of a transferee has been made based on false representations of the transferee, it may be deleted from the share register once the transferee has been provided with the opportunity to be heard. Amendments to the applicable transfer restrictions regime require 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 2023, no exceptions to the limitations on transferability and nominee registration were granted. For more details, please see Art. 6 of our articles of association (available at www.partnersgroup.com/ articlesofassociation). A summary of all bonds outstanding as of 31 December 2023 is listed below. In June 2017, Partners Group issued a 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. In June 2019, Partners Group issued another 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. In September 2023, Partners Group further issued two corporate bonds. The firm raised CHF 150 million through a first fixed-rate senior unsecured CHF-denominated bond (ISIN: CH1293714346). The bond was issued with a five-year tenor, a coupon of 2.25%, and matures on 26 September 2028. The firm raised a further CHF 180 million through a first fixed-rate senior unsecured CHF-denominated bond (ISIN: CH1293714353). The bond was issued with a ten-year tenor, a coupon of 2.40%, and matures on 26 September 2033. Please see note 3.2.2. of the consolidated financial statements in the Annual Report 2023 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 2.2. of the consolidated financial statements in the Annual Report 2023 for comprehensive information on the share and option program of the firm. Partners Group currently has no convertible bonds outstanding and has not issued any further convertible bonds or options. 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. Partners Group defines the 'entrepreneurial governance' approach by the concept that governance must be based on strategy and the objective of creating and sustaining a winning business model. Boards and management teams must be set up from the outset to achieve this strategy and vision. The ability of each Board member, individually and as part of a combined team, to actively contribute to defining and driving forward strategy and achieving business objectives is a critically- defining element of 'entrepreneurial governance'. The Board consists of four executive Board members — the Executive Chairman and the three founders — and four independent Board members. None of the Board members have line management functions. Through the Board’s committees, Board members contribute to investment- as well as client-related activities and operationally-focused initiatives. The Chairman also oversees the Executive Team in leading the operations and in executing 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. Corporate Governance Report 2023 Annual Report 142 As of 31 December 2023, the Board of Directors consists of eight members. All members were elected at the annual general meeting of shareholders ('Annual General Meeting') 2023 for a one-year tenure with the possibility of re- election. 3.1. Members of the Board of Directors All members of the Board of Directors of Partners Group Holding AG are also members of the Board of Directors ('the Board') of Partners Group AG, a 100% 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. 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, various 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. Independent members of the Board may not: • • • 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; once appointed to the Board, 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), Anne Lester, Gaëlle Olivier, and Flora Zhao. The total number of independent Board members amounted to four as of 31 December 2023. None 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 of 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 exercises 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. Corporate Governance Report 2023 Annual Report 143 Professional background and education of each member of the Board of Directors, including their responsibilities and other activities and functions2 Steffen Meister, Chairman Dr. Marcel Erni Alfred Gantner Steffen Meister is a Partner of the firm and Executive Chairman of the Board of Directors of Partners Group Holding AG, based in Zug. He is also the Chairman of the Corporate Development Committee, Chairman of the Investment Oversight Committee, and a member of the Client Oversight Committee and Operations Oversight Committee. 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. Mr. Meister holds a Master’s degree in Mathematics from the Swiss Federal Institute of Technology (ETH), Switzerland. • Other relevant mandates: Crossiety AG (Co- Founder and Chairman), FAIRTIQ AG, ETH Foundation's Board of Trustees • Board mandates at Partners Group’s portfolio companies: Hearthside Food Solutions Dr. Marcel Erni co-founded Partners Group in 1996. He is an executive member of Partners Group Holding AG’s Board of Directors, based in Zug. He is also a member of the Corporate Development Committee, the Investment Oversight Committee and the Thematic Relative Value Committee. Previously, Dr. Marcel Erni 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. Mr. Erni 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. • Other relevant mandates: PG3 AG • Board mandates at Partners Group’s portfolio companies: AMMEGA, Telepass Alfred Gantner co-founded Partners Group in 1996. He is a an executive member of Partners Group Holding AG’s Board of Directors, based in Zug. He is also a member of the Corporate Development Committee and the Investment Oversight Committee. 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 Universal Security, VAT, USIC, and PCI Pharma Services. Prior to founding Partners Group, he worked at Goldman Sachs & Co. Mr. Gantner holds an MBA from the Brigham Young University Marriott School of Management in Utah, USA. • Other relevant mandates: PG3 AG • Board mandates at Partners Group’s portfolio companies: Confluent Health, Esentia Energy Systems, Climeworks AG, Breitling SA (Chairman) 2 Partners Group representatives are a member of the board of a Partners Group portfolio company or a number of special purpose vehicles established in connection with the respective investment. Corporate Governance Report 2023 Annual Report 144 Anne Lester Gaëlle Olivier Dr. Martin Strobel Urs Wietlisbach Anne Lester is an independent member of the Board of Directors of Partners Group Holding AG. She is a member of the Client Oversight Committee, the Risk & Audit Committee, and the Nomination & Compensation Committee. Anne Lester has over 30 years of experience in senior leadership roles at JP Morgan Asset Management, most recently serving from 2015 to 2020 as Managing Director, Portfolio Manager, and Head of Retirement Solutions in the Multi-Asset Solutions division where she launched JP Morgan's SmartRetirement Target Date franchise. She also founded the Aspen Leadership Forum on Retirement Savings in conjunction with AARP and holds three patents for the design of a dynamic withdrawal investment process and for the evaluation of target date funds. Ms. Lester holds a Bachelor's degree in Politics from Princeton University, New Jersey, USA and a Master's degree in International Relations from the Johns Hopkins University School of Advanced International Studies, Washington, DC, USA. As of 1 January 2024, she also serves on the Board of Partners Group's US entity. • Other relevant mandates: Smart USA Gaëlle Olivier is an independent member of the Board of Directors of Partners Group Holding AG. She is the Chairwoman of the Operations Oversight Committee and a member of the Risk & Audit Committee. Gaëlle Olivier has over 30 years of experience in financial services. After a first career in the financial derivatives industry, she joined AXA Group in 1998, where she held several senior executive roles over the next 21 years, ten of which were spent in Asia. In 2016, she was appointed CEO of AXA Group's Property & Casualty business, and a member of the AXA Group Management Committee. In 2020, Gaëlle Olivier joined Société Générale as Chief Executive Officer of Asia Pacific activities and then held the role of Group Deputy General Manager and Chief Operating Officer until the end of 2022. Gaëlle Olivier holds a diploma from ENSAE in France where she majored in Economics and also holds a diploma from École Polytechnique, a leading French engineering school, where she majored in Chemistry and Economics. • Other relevant mandates: CED Europe, SpVie, Galytix • Board mandates at Partners Group portfolio companies: Version 1 Dr. Martin Strobel is the Vice Chairman and Lead Independent Director of the Board of Directors of Partners Group Holding AG. He is the Chairman of the Risk & Audit Committee and a member of the Corporate Development Committee, the Nomination & Compensation Committee, and the Operations Oversight Committee. He also serves on the Board of Partners Group's UK entity. Dr. Martin Strobel began 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. Mr. Strobel's background is in technology and he gained a PhD in Business Computer Science from the Otto-Friedrich-Universität Bamberg. • Other relevant mandates: Aviva plc, msg life AG Urs Wietlisbach co-founded Partners Group in 1996. He is a an executive member of Partners Group Holding AG’s Board of Directors, based in Zug. He is also the Chairman of the Client Oversight Committee and a member of the Corporate Development Committee. Prior to founding Partners Group, Urs Wietlisbach worked at Goldman Sachs & Co. and Credit Suisse. Mr. Wietlisbach holds a Master’s degree in Business Administration from the University of St. Gallen (HSG), Switzerland. • Other relevant mandates: Blue Earth Capital (Chairman), Blue Earth Foundation, Entrepreneur Partners AG, PG3 AG • Board mandates at Partners Group’s portfolio companies: KR Group (Board observer) Corporate Governance Report 2023 Annual Report 145 Flora Zhao Flora Zhao is an independent member of the Board of Directors of Partners Group Holding AG. She is the Chairwoman of the Nomination & Compensation Committee and a member of the Investment Oversight Committee. She has over 30 years of executive experience with global Fortune 500 companies across the energy infrastructure value chain in Asia. Previously, she was President of Gas Asia at BP where she was responsible for the gas and liquefied natural gas business in the eastern hemisphere from 2010 to 2018. Prior to that, Flora was a Managing Director at AES Corporation, a NYSE-listed global power company comprising power generation, distribution, and alternative energy businesses. She began her career at the Construction Bank of China. Flora Zhao holds a Bachelor's degree in Engineering from Zhejiang University, China and a Master's degree in Construction Management from the University of Maryland, College Park, USA. She also completed the Senior Executive Program at the University of Virginia, Darden School of Business, USA. As of September 2023, she also serves on the Board of Partners Group's Singapore entity. • Other relevant mandates: Temasek International Pte Ltd (Senior Advisor), Pavilion Energy Ltd, Greenext Holdings Pte Ltd, Greenext India Pvt Ltd Corporate Governance Report 2023 Annual Report 146 Organizational changes to the Board of Directors — On 9 March 2023, Partners Group announced amendments, including a retirement and a nomination, regarding the composition of its Board of Directors and related committees, which were proposed and accepted at the Annual General Meeting on 24 May 2023. Gaëlle Olivier was elected as a new member of the Board while Joseph P. Landy retired from the Board. Gaëlle Olivier's first appointment was to the Risk & Audit Committee where she currently serves as an independent director. She was further appointed as the Chairwoman of the newly formed Operations Oversight Committee which held its first meeting in November 2023. Joseph P. Landy retired from the Board after the May AGM for personal reasons. He served on the Board from 2021, including assignments as a member of the Risk & Audit Committee and the Investment Oversight Committee. For further details on Joseph P. Landy (professional background, education, etc.), please refer to page 163, in Section 3.1 Members of the Board of Directors, of the Corporate Governance Report 2022, included in the Annual Report 2022 (available at www.partnersgroup.com/ annualreport2022). 3.2. Other activities and vested interests Please see note 3.1 above. 3.3. Number of permitted activities In accordance with Art. 626 para. 2 item 1 Swiss Code of Obligations and Art. 25 of the articles of association (available at www.partnersgroup.com/ articlesofassociation), 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 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 Swiss Code of Obligations. 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 (available at www.partnersgroup.com/ articlesofassociation) that differ from the statutory legal provisions with regard to the appointment of the Chairman, the members of the Nomination & Compensation Committee, and the independent proxy. Succession planning — Succession planning is of significant importance to the Board of Directors. The Nomination & Compensation Committee supports the Chairman of the Board in the review and assessment of newly appointed directors. The Nomination & Compensation Committee together with the Chairman of the Board will oversee the development of a diverse succession pipeline for the Board. They regularly analyze 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 fulfillment 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 Corporate Governance Report 2023 Annual Report 147 key areas and the industry are constantly increasing. The Board design leans towards the strategic value drivers and needs of the organization. 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 include profit or loss responsibility) as well as leadership and decision-making experience in large, complex institutions or having had broad international exposure. Diversity of perspectives and experience — 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 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 & 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% of under- represented groups on a three-year rolling- basis. 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 to download on the website at www.partnersgroup.com/policiesanddirectives. 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 (available at www.partnersgroup.com/articlesofassociation) and the Swiss Federal Act on Collective Investment Schemes. The Board of Directors has ultimate responsibility for the strategy and development of Partners Group. Please see page 143, 144, and 145 for the Board composition as well as section 3.1. for information on the allocation of tasks within 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 Organization and of Operations (the 'ROO'; Organisationsreglement); in 2023, four formal meetings were held (2022: five), which lasted approximately four and a half hours on average. The meetings of the Board of Directors were also attended by relevant participants who hold key functions or responsibilities within the company, such as members of the Executive Team. The formal meetings were complemented by regular informal interactions with management and employees across the firm. The Board of Directors can deliberate only when 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 Client Oversight Committee, the Operations Oversight Committee, and the Investment Oversight 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 Swiss Code of Obligations. Please see the table at the end 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. Corporate Governance Report 2023 Annual Report 148 Board member tenure, diversity, expertise and committee membership & attendance Steffen Meister Marcel Erni Alfred Gantner Anne Lester Gaëlle Olivier3 Martin Strobel Urs Wietlisbach Flora Zhao Joseph P. Landy4 Tenure & role Joined Board in Independent / Executive Diversity Gender Birth year Nationality 20135 Chairman & Executive Male 1970 Swiss 1997 1997 2022 2023 2019 1997 2022 2021 Executive Executive Independent Independent Vice Chairman & Independent Executive Independent Independent Male 1965 Swiss Male 1968 Swiss Female 1964 Female 1971 Male 1966 Male 1961 Female 1965 Male 1961 American French Swiss/German Swiss Singaporean American Expertise prior to current Board assignment6 Private markets industry know-how C-level experience Risk management Broad international exposure Investment experience Operations Technology/Cybersecurity HR/Compensation x x x x x x x Chairmanship of Board committee Board, IOC Membership & attendance Board Risk & Audit Committee Nomination & Compensation Committee Operations Oversight Committee Investment Oversight Committee Client Oversight Committee 4/4 n/a n/a 1/1 4/4 7/7 x x x x x - 2/4 n/a n/a n/a 1/4 n/a x x x x x x x - 4/4 n/a n/a n/a 2/4 n/a x x x x x x x x x x x x x x x x x x x x x x x x x OOC RAC COC NCC 2/2 4/4 n/a 1/1 n/a n/a 4/4 7/7 2/2 1/1 n/a n/a 4/4 n/a n/a n/a n/a 6/7 4/4 n/a 2/2 n/a 4/4 n/a x x x x - 4/4 7/7 2/2 n/a n/a 6/7 Meeting attendance record 100% 38%7 75% 95% 100% 100% 91% 100% x x x x x x x - 2/2 1/3 n/a n/a 2/2 n/a 71% 3 Gaëlle Olivier joined the Board after the 24 May 2023 AGM. Her Board committee assignments include the Risk & Audit Committee and the Operations Oversight Committee. 4 Joseph P. Landy retired from the Board after the 24 May 2023 AGM for personal reasons. He served on the Board from 2021, including assignments as a member of the Risk & Audit Committee and the Investment Oversight Committee. 5 Steffen Meister also served on the Board from 2001 to 2005. 6 Experience is taken into account when the Board member is considered to have five years of experience. Exception for international exposure and investment experience where Board member must have ten years of experience. 7 Dr. Marcel Erni attended fewer than 75% of the Board meetings in 2023. As an executive Board member, Dr. Erni remained heavily engaged in shaping Partners Group's investment strategy and contributing to the Board and committee meetings and dedicated three days per week working for the firm. See page 151 for further details. Corporate Governance Report 2023 Annual Report 149 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) oversees the quality of the internal and external auditing, (iv) ensures the execution of the external audit, (v) makes recommendations to the Board of Directors regarding the nomination of external auditors to be appointed by the shareholders, (vi) reviews the financial statements and approves the half-year financial reports, (vii) monitors the financial review processes, and (viii) 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 (available at www.partnersgroup.com/ articlesofassociation), the RAC is presided over by an independent Board member. Until 24 May 2023, the members of the committee were Dr. Martin Strobel (Chair), Joseph P. Landy, and Anne Lester. As of the Annual General Meeting, the members of the RAC are Dr. Martin Strobel (Chair), Anne Lester, and Gaëlle Olivier. The RAC held seven formal meetings in 2023 (2022: nine), which lasted approximately three hours on average. The firm's external auditors attended seven meetings of the RAC in 2023. The meetings of the RAC may also be attended by other (non- voting) participants, such as other members of the Board of Directors or 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 regulatory, legal, conduct 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 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 (to be approved by the Board of Directors) 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 (available at www.partnersgroup.com/ articlesofassociation), the NCC is presided over by an independent Board member. The members of the NCC are Flora Zhao (Chair), Anne Lester, and Dr. Martin Strobel. The NCC held two formal meetings in 2023 (2022: two), which lasted approximately three to three and a half 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. The meetings of the NCC were also attended by other (non-voting) participants, such as other 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. Client Oversight Committee ('COC') — The COC advises and supports the Board and the Executive Team in major client related initiatives as well as the development of new client segments and regions of the Group. 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. The members of the COC are Urs Wietlisbach (Chair), Anne Lester, 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 2023 (2022: seven), which lasted approximately two hours on average. The meetings of the COC were also attended by other (non-voting) participants, such as other 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. Corporate Governance Report 2023 Annual Report 150 Operations Oversight Committee ('OOC') — The OOC advises and supports the Board of Directors and the Executive Team in major projects and operationally-focused topics. It conducts strategic assessments (including design, setup, and potential pitfalls of key projects) and reviews and supports execution by responsible bodies within agreed parameters. The members of the OOC are Gaëlle Olivier (Chair), Steffen Meister, and Martin Strobel. The OOC was established in the second half of the reporting year and held its first formal meeting in 2023, which lasted two hours. Going forward, the chairperson may invite additional participants to its meetings, who do not need to be members of the Board of Directors. 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 investment decision- making processes, the investment performance achieved, the realization of the projected appreciation on individual investments, and the investment risks incurred. It defines global 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 IOC has appointed Dr. Marcel Erni and Alfred Gantner as voting members in the Global Investment Committee ('GIC') of Partners Group AG. The two IOC voting members have the right to cast a total of one vote on a particular transaction. Furthermore, the representatives have the right to veto an investment decision taken by the GIC. In the event of a veto, the investment is no longer pursued. The members of the IOC are Steffen Meister (Chair), Dr. Marcel Erni, Alfred Gantner, and Flora Zhao. Furthermore, Stephan Schäli, Partners Group’s Chief Investment Officer ('CIO'), is a non-voting member of the committee. The IOC held four meetings in 2023 (2022: four), which lasted approximately three hours each. 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. In addition to the formal committee meetings of Board of Directors, executive Board members and the Vice-Chairman of the Board hold regular informal interactions with select Executive Team members through the Corporate Development Committee ('CDC'). The CDC's role as a formal Board Committee was discontinued in 2022 and now serves as a forum through which the Chairman, executive Board members, and the Vice-Chairman interact with select Executive Team members with the purpose of providing advice and mentoring to the Executive Team on topics of strategic importance to the firm. Other Board and Executive Team members can attend in accordance with the nature of the topics at hand and the meetings occur on an ad-hoc basis, typically monthly, and last on average two hours. 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 are also complemented by regular informal interactions with management and employees across the firm. In 2023, aggregate attendance levels amounted to 89% and seven out of eight Board members attended 75% or more of the meetings, a threshold viewed as best practice by shareholders and proxy advisors. Dr. Marcel Erni attended fewer than 75% of the Board meetings in 2023. As an Executive Board member, Dr. Erni remained heavily engaged in shaping Partners Group's investment strategy. He focused on establishing entrepreneurial governance throughout the firm's portfolio companies and spent approximately 3 days per week working on topics related to the firm's investment committees. In 2023, Dr. Erni provided feedback on all Board meeting agenda items prior to the respective Board or committee meetings which were discussed and taken into account by the respective meeting attendees. For 2024, no scheduling conflicts are foreseen allowing for solid attendance at Board and Board Committee meetings. 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 Corporate Governance Report 2023 Annual Report 151 member with the ability to receive and provide feedback on the workings of the Board and to define takeaways to be incorporated in the goals for the upcoming year. The 2023 assessment took place following the November 2023 Board meeting. The Board self-assessment typically starts with a review of organizational aspects such as the structure of sub-committees, external, and internal communications as well as shareholder activities. The self-assessment subsequently focuses on goals to support the firm's strategic pillars in accordance with the respective Board Committee's area of responsibility. In 2023, the Investment Oversight Committee further improved the board governance review process for the firm's portfolio companies and provided support to additionally strengthen the development of the thematic pipeline and to enhance the portfolio company performance monitoring. The Client Oversight Committee recognized successes with initiating the launch of several new open-ended programs. The COC further acknowledged efforts in the coaching of the planning and strategy process for the wealth management initiative and the direct involvement with the development of several new major client mandates. Lastly, the COC discussed the expansion of various regional strategies. With the formation of the Operations Oversight Committee, the Board addressed the desire of the organization for a centralized authority to oversee strategic projects concerning the firm's operations. This committee aims to better facilitate the dialogue between Executive Team and Board members and to reduce the number of individual steering committees. It also established the objective of preparing the firm for the future by broadening the use and adoption of artificial intelligence across the firm's different business functions. 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 (available at www.partnersgroup.com/articlesofassociation) 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 inalienable and non-transferable functions mentioned in the law (Art. 716a Swiss Code of Obligations) and in the articles of association (available at www.partnersgroup.com/ articlesofassociation), the Board of Directors has a number of additional duties and powers, namely resolutions regarding essential features of the group’s organization, all transactions in connection with real estate (outside of investment activities), resolutions regarding the acceptance and renewal of loans/credit facilities and issuance of guarantees and sureties (subject to certain thresholds), resolutions regarding the initiation of and withdrawal from legal proceedings and settlement agreements (subject to certain thresholds), the establishment of employment conditions and resolutions on employment and termination (subject to certain thresholds), all activities pertaining to the share register, acceptance and handling of audit reports (internal audit and external audit) 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. Based on the ROO, the delegated responsibilities to the Executive Team are generally the following: guidelines, competencies, individual resolutions, and restrictions imposed by the Board; Conclusion of transactions subject to regulations, guidelines, competencies, individual resolutions, and restrictions imposed by the Board of Directors; Establishing subsidiaries and founding new Group companies (branches); Developing and issuing directives, policies and job descriptions for employees to the extent that such tasks are not reserved for the Board of Directors; Employment and termination of employees; Initiating legal actions and concluding settlements up to CHF million p.a. (CHF 500'000 per individual case); 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; Preparation of the financial plan (budget) for approval by the Board; Execution of the Board of Directors’ resolutions; 2. 3. 4. 5. 6. 7. 8. 9. 1. Direct management as well as continual monitoring of business activities within the scope of, and in line with, the regulations, 10. Organizing, assisting, and coordinating the employment benefit plans; 11. Organizing insurance management; Corporate Governance Report 2023 Annual Report 152 12. Organizing risk management as well as 13. 14. 15. implementing and monitoring the internal control system and compliance; Informing the senior management of relevant resolutions made by the Board of Directors and the Executive Team; Proposals for all transactions that have to be submitted to the Board of Directors; 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 Executive Team 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. Partners Group's risk governance structure8 organization. Partners Group has put in place a risk governance structure comprising the following elements and related responsibilities: Board of Directors Risk control & audit Investment risk control Risk & Audit Committee Investment Oversight Committee Financial Risk Oversight Operational Risk Oversight Regulatory, Legal, and Conduct Risk Oversight Investment Risk Oversight Internal and External Audit Executive Team CEO & CFO Business Department Heads & Specialists1) CEO, CFO & General Counsel Financial Risk Management Operational Risk Management Regulatory, Legal and Conduct Risk Management Investment Committees, Investment Business Department Heads & Investment Specialists 2) Investment Risk Management 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 maintains continuous independent communication with the 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 described in further detail in section 3.5 above. Risk assessment and risk reporting by the Chief Risk Officer 3.7.1.4. Crisis Response Team 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 3.7.1.1. Board The Board of Directors of Partners Group Holding AG is responsible for stipulating risk management and governance principles in line with its obligations under applicable laws. 3.7.1.2. Risk & Audit Committee The RAC advises and supports the Board in the area of audit and risk control, as described in further detail in section 3.5 above. The RAC has the responsibility to review the risk profile of Partners Group and to ensure that appropriate The Crisis Response Team ('CRT') is a governing body of the company responsible for ensuring appropriate organization, communication, and decision-making during a crisis. It consists of the Chairperson, the Chairman of the RAC, two other members of the Board (as determined by the Board), and the members of the Executive Team. Upon the request of the Chairperson, additional persons with expertise and experience in relation to the specific crisis can be nominated as ad-hoc members with voting right (solely Board members) and/or as non-voting advisors to the CRT. 8 1) Specialists include Chief Technology Officer, Chief Information Security Officer, etc. 2) Investment Specialists include Chief Investment Officer, Chairman Global Investment Committee, etc. Corporate Governance Report 2023 Annual Report 153 3.7.1.5. Group Internal Audit 3.7.1.8. Chief Risk Officer 3.8. Risk culture Group Internal Audit ('GIA') provides independent, risk-based and objective assurance, advice and insight, and contributes to the continuous improvement of the organization. GIA is independent and reports to the Chairman of the RAC. GIA works closely with both the Chairman of the RAC, the Chairman of the Board, and the Executive Team. The purpose, scope, authorities, responsibilities, tasks, and priorities of GIA are regularly discussed with and approved by the RAC, and the scope covers the entire organization. 3.7.1.6. 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 Partners Group Holding ('Executive Team'). The Executive Team reports periodically on the effectiveness of Partners Group’s risk management to the Risk & Audit Committee. 3.7.1.7. 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. 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 Executive Team to steer the company to operate within the predefined risk tolerances and the RAC to review Partners Group’s risk profile; • 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; and 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. 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 judgment: 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 their own mistakes, and highlight things that are believed to be wrong, as further set out in the Speak-up Directive. • Ownership and 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 approach 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 conduct 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. • Corporate Governance Report 2023 Annual Report 154 investment due diligence, ESG, portfolio management, and semi-liquid products). A key aspect of the ERT is the definition of Risk Claims articulating the level and type of risks Partners Group Risk Framework Board of Directors Risk Themes Risk Categories Risk Areas Risk / Controls Identification & Assignment Measurement & Assessment Reporting Enterprise Risk Taxonomy Culture In the ERT, as illustrated on the right hand-side of the page, 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 Group's 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. Partners Group is willing to take in order to achieve its strategic objectives. Risk Claims shape the requisite controls and dictate risk behaviors. 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 conduct 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. collaborate and communicate effectively on an ongoing basis. Enterprise Risk Taxonomy 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 section 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 section 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 3.9.2. Roles and responsibilities Risk Category Owners are typically Executive Team members or Focus Group members. 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; and • 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 Corporate Governance Report 2023 Annual Report 155 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; • Designing, documenting, implementing, and assigning processes and controls to mitigate these risks following Operational Excellence principles; Taking corrective measures in case Risk Claims are (at risk of) being breached; and 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. • Assessing quality of corrective measures taken in case of breach of Risk Claims; and • Reviewing if identified gaps and/or areas for improvement are implemented. Validation Owners typically validate reporting issued by 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. 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; and • Reporting on effectiveness of risk management and controls to Risk Area Owners. 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: • 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; 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: • Scenario analysis: Risk Owners assess if defined Risk Claims withstand external shocks, such as 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. • Corporate Governance Report 2023 Annual Report 156 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. 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 are 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). Corporate Governance Report 2023 Annual Report 157 4. Executive Team The table below shows the composition of the Executive Team and the roles of the Executive Team members as of 31 December 2023 (unless indicated differently): Name David Layton Kirsta Anderson9 Sarah Brewer Roberto Cagnati Juri Jenkner Andreas Knecht Wolf-Henning Scheider Joined Partners Group in Nationality Birth year Pillar (Co)-Leadership Title/Position 2005 2020 2008 American American British 1981 1979 Chief Executive Officer Chief People Officer, Head Human Resources 1983 Clients Co-Head Client Solutions 2004 Swiss/Italian 1978 Clients Chief Risk Officer, Head Portfolio Solutions 2004 2009 2023 German Swiss German 1975 Investments Head Private Infrastructure10 1969 Chief Operating Officer, Co-General Counsel, and Co-Head Legal & Compliance 1962 Investments Head Private Equity Executive Team members until 30 June 2023 Hans Ploos van Amstel Marlis Morin 2020 Dutch 2003 Swiss/Italian 1965 1970 Chief Financial Officer, Head Group Finance & Corporate Development11 Head Client Services12 Executive Team member since 1 January 2024 Joris Gröflin Esther Peiner 2024 Swiss/Dutch 1977 Finance Chief Financial Officer13 2015 German 1980 Head Private Infrastructure 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 (available at www.partnersgroup.com/articlesofassociation) 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. 9 On 31 January 2024, Kirsta Anderson rotated out of the Executive Team into the role of Advisory Partner role. See page 161 for further details. 10 On 1 January 2024, Juri Jenkner rotated out of his role as Head of Private Infrastructure to assume the newly created role role of President. 11 See page 161 for further details. 12 See page 161 for further details. 13 See page 161 for further details. Corporate Governance Report 2023 Annual Report 158 Professional background and education of each member of the Executive Team, including other activities and functions14 David Layton Kirsta Anderson Sarah Brewer Partner, Chief Executive Officer Partner, Chief People Officer Partner, Co-Head Client Solutions He is the Chief Executive Officer of Partners Group, based in the firm’s Americas headquarters in Denver, Colorado. He leads the Executive Team, the Global Executive Board, and is a member of the Global Investment Committee. David principally divides his time between Partners Group's Americas headquarters in Colorado, USA, and Partners Group's global headquarters in Zug, Switzerland. He was previously the Head of Partners Group’s Private Equity business department and has represented the firm on the Board of Directors of several of the firm’s portfolio companies, including Universal Services 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 holds a Bachelor’s degree in Finance from Brigham Young University's Marriott School of Management, USA. Until 31 January 2024, she was Partners Group’s Chief People Officer and Global Head of the Human Resources business department, based in Zug and London. She was a member of the Executive Team, the Global Executive Board, and was also the Co-Chair of the firm’s Diversity & Inclusion Committee. Prior to joining Partners Group, she worked at Korn Ferry from 2004 to 2020 where she progressed to the position of Senior Partner, building and leading their global Culture Transformation practice. Previously, 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. On 31 January 2024, she rotated out of the Executive Team into the role of Advisory Partner. See page 161 for further details. She is Co-Head of the Client Solutions business department and Head of Client Solutions for the UK, based in London. She co-leads Partners Group's Clients Pillar, is a member of the Executive Team, and the Global Executive Board. She has been with Partners Group since 2008. 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. 14 All titles are reflective of the Executive Team members’ roles and titles as of 31 December 2023. Corporate Governance Report 2023 Annual Report 159 Roberto Cagnati Juri Jenkner Andreas Knecht Wolf-Henning Scheider Partner, Chief Risk Officer, Head Portfolio Solutions Partner, Head Private Infrastructure Partner, Chief Operating Officer, Co-General Counsel, and Co-Head Legal & Compliance Partner, Head Private Equity He is Partners Group’s Chief Risk Officer and Head of the Portfolio Solutions business department, based in Zug. He co-leads the firm's Clients Pillar, is a member of the Executive Team, the Global Portfolio Committee, the Global Executive Board as well as Deputy Chairman of the Private Markets Relative Value Committee. He has been with Partners Group since 2004. 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. Until 31 December 2023, he was Co-Head of Investments and Head of the Private Infrastructure business department, based in Zug. He co-leads Partners Group's Investments Pillar and is a member of the Executive Team and the Global Executive Board. He is also a member of the Global Investment Committee, the Private Markets Relative Value Committee, and the Corporate Development Committee. Previously, he served as 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. 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. On 1 January 2024, he rotated out of the Head of Private Infrastructure role to assume the newly created role of President while remaining Co-Head of Investments. He will also act as Chair of the Partners Group's Private Infrastructure business. He is the Chief Operating Officer and Co-General Counsel of Partners Group, based in Zug. He leads the firm's Operations Pillar, is Co-Head of the Legal & Compliance business department, and is a member of the Executive Team and the Global Executive Board. He has been with Partners Group since 2009. Prior to joining Partners Group, he worked as an attorney at a number of different law firms, including Niederer Kraft & Frey, advising corporate clients in M&A and financing matters, and as co-lead at Man Group's Continental Europe legal team. 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. Wolf-Henning Scheider is Co-Head of Investments and Head of the Private Equity business department, based in Zug. He co-leads Partners Group's Investments Pillar, is the Head of the Private Equity Technology business unit and is a member of the Executive Team, the Global Executive Board, the Private Markets Relative Value Committee, and the Thematic Relative Value Committee. Prior to joining Partners Group, he worked at ZF Group from 2018 to 2023, a global technology company, as the Chairman of the Board of Management and CEO, and was also responsible for Research & Development and Sales. He also worked at MAHLE Group from 2015 to 2018 where he served as Chairman of the Management Board and CEO, as well as at Robert Bosch GmbH, where he held various roles amongst others such as the CEO of the Car Multimedia Division and the Gasoline Systems Divisions. Afterwards, he was appointed as Member of the Board of Management and later on took over the overall responsibility for the activities of the Automotive Group. He holds degrees in Business Administration from Saarland University, Germany and RWTH Aachen University, Germany. Corporate Governance Report 2023 Annual Report 160 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 announced on 12 July 2022 the hiring of Wolf- Henning Scheider as Partner and Head of Private Equity. Mr. Scheider joined Partners Group in January 2023 and subsequently joined the firm's Executive Team on 9 March 2023. On 24 May 2023, the firm also announced the transition of Hans Ploos van Amstel from the Chief Financial Officer role into an Advisory Partner function with effect as of 30 June 2023. Mr. Ploos van Amstel joined Partners Group in 2020 with the mandate to modernize the firm's finance function after a period of significant growth. Following the completion of his assignment, he transitioned to the role of Advisory Partner. In his new role, Mr. Ploos van Amstel provides consultancy services to Partners Group and select portfolio companies. For further details on Hans Ploos van Amstel (professional background, education, etc.) please refer to page 180, within Section 4.1 Members of the Executive Team, of the Corporate Governance Report 2022, included in the Annual Report 2022 (available at www.partnersgroup.com/annualreport2022). The firm furthermore announced on 24 May 2023 that Marlis Morin would transition out of the Executive Team and the day-to-day management of Client Services with effect as of 30 June 2023 but would remain a Partner of the firm. Ms. Morin has spent a total of 20 years to date with Partners Group in several leadership roles. Since 2014, she has been responsible for a period of growth and successful transformation for Client Services. Ms. Morin also launched Partners Group's Manila office in 2016, creating a services and operations hub to complement its Singapore office. For further details on Marlis Morin (professional background, education, etc.) please refer to page 180, in section 4.1 Members of the Executive Team, of the Corporate Governance Report 2022 (available at www.partnersgroup.com/annualreport2022). On 30 June 2023, Partners Group announced the appointment of Joris Gröflin as Partner and Chief Financial Officer and member of the Executive Team. Mr. Gröflin joined Partners Group on 1 January 2024 taking over responsibility from Manuel Ottinger and Philip Sauer, who co-led the function ad interim. Mr. Gröflin brings more than 20 years of experience, primarily across a variety of finance functions at leading Swiss industry groups. Previously, Mr. Gröflin was CFO and a member of the Executive Board at Axpo Holding AG. Prior to that, he held management roles at Rieter Holding AG, serving as CFO and as a member of the Group Executive Committee. Earlier on in his career, Mr. Gröflin worked in various roles at Kearney. On 7 December 2023, Partners Group announced three further changes to the Executive Team. Juri Jenkner, Partner, took on the newly created role of President of Partners Group on 1 January 2024. In this role, Mr. Jenkner will drive the execution of corporate and business development initiatives, working closely with the Chief Executive Officer and Executive Chairman. He will remain a Global Investment Committee member and Co-Head of Investments, with overall responsibility for the firm's infrastructure, real estate, and private credit businesses. Mr. Jenkner will also act as Chair of Partners Group's Private Infrastructure business. Esther Peiner, Partner, became Head of Private Infrastructure, and joined the Executive Team on 1 January 2024. Ms. Peiner joined Partners Group in 2015 and is a member of the Private Infrastructure and Global Investment Committees. She is a member of the Board of Directors of the firm's portfolio companies EOLO, atNorth, Lifelink, and CapeOmega. In her new role, she will assume operational responsibility for Partners Group's infrastructure business, reporting into Mr. Jenkner. Kirsta Anderson, Partner and Chief People Officer, transitioned into an Advisory Partner function and rotated out of the Executive Team on 31 January 2024. Ms. Anderson joined Partners Group in 2020 to lead a cultural transformation designed to support the firm's continued growth and embed its HR Talent strategy into the broader Executive Team mandate. With the conclusion of the project, Ms. Anderson will continue to provide advisory services to Partners Group on employee engagement-related topics as well as to portfolio companies. There are no additional changes to the composition of the Executive Team. 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. Corporate Governance Report 2023 Annual Report 161 4.3. Number of mandates pursuant to the Swiss Code of Obligations In accordance with Art. 626 para. 2 item 1 Swiss Code of Obligations and Art. 29 of the articles of association (available at www.partnersgroup.com/ articlesofassociation), 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 for the exercise of executive management functions. 4.5. Global Executive Board The Executive Team is supported by a global leadership team comprising 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. 5. Compensation, shareholdings, and loans 5.1. Principles, content, and method of determining the compensation Pursuant to Art. 734 and 734b of the Swiss Code of Obligations, all compensation paid in 2023 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 2023. In the Compensation Report 2023, the firm outlines its compensation principles, components, and method. The Compensation Report can be found in the Annual Report 2023 or on the firm’s website available at: www.partnersgroup.com/ financialreports. The shareholders individually approve, each year at the Annual General Meeting, the motions of the Board of Directors with regard to: (i) the maximum total short-term compensation for the Board of Directors for the period until the next ordinary annual shareholders’ meeting; (ii) the maximum total long-term compensation for the Board of Directors for the preceding term of office; (iii) the maximum total Technical Non- Financial Income for the Board of Directors for the preceding term of office; (iv) the maximum total short-term compensation for the Executive Team for the following fiscal year; (v) the maximum total long-term compensation for the Executive Team for the preceding fiscal year, and (vi) the maximum total Technical Non- Financial Income for the Executive Team for the preceding fiscal year. For further details on the compensation approval, general compensation principles, and the form of compensation please refer to Articles 35-37 of the articles of association (available at www.partnersgroup.com/ articlesofassociation), as well as the Compensation Report. 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. 735c Swiss Code of Obligations, the principal 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 (available at www.partnersgroup.com/articlesofassociation) 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 2023 for the Board of Directors and the Executive Team (refer to sections 2.7 and 3.5 in the compensation report). 6. Shareholders’ participation 6.1. Voting rights and representation measures With the exception of the treasury shares held by the company, each share entitles the shareholder 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 share register as of a qualifying date prior to the shareholders’ meeting set by the Board of Directors. Registration in the share register with the attached voting rights is restricted by the limits on transferability and nominee registration as Corporate Governance Report 2023 Annual Report 162 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 (i) by a legal representative who needs not be a shareholder or (ii) 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 (see Art. 18 of the articles of association, available at www.partnersgroup.com/ articlesofassociation): • • 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). In addition, the law provides for a qualified majority for other resolutions, such as a merger or demerger. 6.3. Convocation of the general meeting of shareholders The Annual General Meeting takes place within six months of the close of the financial year. Shareholders receive an invitation to each general meeting of shareholders (Annual General Meeting and extraordinary general meeting, if any) 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 respective general meeting. In 2024, the annual general meeting of shareholders is scheduled for 22 May. For further details on the process for the convocation of general meetings (which does defer from the statutory rules) please refer to Art. 13 and 14 of the articles of association available at www.partnersgroup.com/ articlesofassociation). The shareholders' meeting is called by the Board of Directors or, where required, by the auditors, the liquidators, or the representative bondholders. Shareholders representing at least 5% of the share capital or the votes 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 7. Changes of control and defense measures Shareholders representing at least 0.5% of the share capital or the votes may request that an item or the inclusion of motions relating to items be placed on the agenda at a shareholders’ meeting, provided such request is received by the Board of Directors in writing 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. Shareholders may submit a brief statement of reasons together with the request for the inclusion of an item on the agenda or the motion. These must be included in the notice of the shareholders' meeting. 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 shareholders' meeting. 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 (so called opting-out). 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 the Swiss Code of Obligations); 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 Corporate Governance Report 2023 Annual Report 163 exist that protect the above-mentioned persons by certain contractual conditions against the consequences of takeovers. 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 a one-year period at the annual general meeting of shareholders and were re-elected at the Annual General Meeting 2023. 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 2023, KPMG AG and other KPMG companies received a total of CHF 2.1 million (2022: CHF 2.0 million) for audit services. 8.3. Additional fees auditors were also involved in evaluating findings on risk factors and processes. In addition, KPMG AG and other KPMG companies received CHF 0.1 million (2022: CHF 0.1 million) in fees for consulting services (tax, regulatory, and IFRS) rendered to Partners Group and its subsidiaries in the financial year 2023. 8.4. Oversight of the external auditors The Board of Directors is responsible for the acceptance and processing of the reports from the statutory and group auditors. In doing so, 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 accounting matters and the audit. During the 2023 financial year, the external auditors participated in seven meetings of the Risk & Audit Committee in order to discuss audit processes as well as regulatory guidelines and monitoring. Among others, the external 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. The Risk & Audit Committee also verifies that any additional services of the auditors not relating to the audit services are provided within the independence requirements pursuant to Swiss law. The reports and presentations made by external auditors, the discussions in the meetings, and the expertise form the basis for the assessment of the external auditors' performance and the fees paid for the audit services provided. 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. 8.5. Proposal for a new auditor starting in 2025 In 2022, Partners Group launched a Request for Proposal process to select a new auditor for the firm which concluded at the end of 2023. The Risk & Audit Committee has been actively engaged throughout the process, and has run a competitive, transparent, and fair tender process to select the new auditor. The Board and Risk & Audit Committee have decided to propose PricewaterhouseCoopers AG to the shareholders at the 2025 AGM for voting and ratification. The new auditor will be responsible auditor starting with the fiscal year 2025. 9. Information policy 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. Corporate Governance Report 2023 Annual Report 164 Key dates for 2024 are as follows: Event Announcement of AuM as of 31 December 2023 Publication of Financial Results as of 31 December 2023 Annual General Meeting of shareholders Ex-dividend date Dividend record date Dividend payment date Announcement of AuM as of 30 June 2024 Date 11 January 2024 19 March 2024 22 May 2024 24 May 2024 27 May 2024 28 May 2024 11 July 2024 Publication of Interim Financial Results & Report as of 30 June 2024 3 September 2024 Partners Group’s Interim and Annual Reports are available for download on the website at www.partnersgroup.com/financialreports. The Company's publication gazette is the Swiss Official Gazette of Commerce (Schweizerisches Handelsamtblatt). The Board of Directors may designate additional publications. Convocation of shareholders' meetings and notifications to shareholders may also be made in writing by letter or by email to the addresses recorded in the share register. Partners Group also distributes all current news via regular press releases and price sensitive information via ad-hoc announcements. All published press releases and ad-hoc announcements 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 and ad-hoc announcements at www.partnersgroup.com/subscribe. Partners Group’s Compensation Report outlining the 2023 compensation for the Board of Directors and Executive Team can be found on the Partners Group website at www.partnersgroup.com/financialreports or in the 2023 Annual Report. For all investor inquiries Philip Sauer can be reached as follows: Philip Sauer Zugerstrasse 57 6341 Baar-Zug Switzerland T: +41 41 784 66 60 Email: shareholders@partnersgroup.com Headquarters: Zugerstrasse 57 6341 Baar-Zug Switzerland www.partnersgroup.com 10. Quiet periods 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 shares and listed debt instruments issued by Partners Group Holding AG or any subsidiary. All Partners Group’s employees are only 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 financial results. In addition, independent Board members of Partners Group Holding AG are also 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 for 2024: Public announcement Order Window Annual financial results 20 March - 25 May Interim financial results 4 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 six 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. During the reporting 2023 year, all decisions made by Partners Group employees in regards to PGH Securities were made within the prescribed Order Windows (i.e. no exceptions were granted). 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. Corporate Governance Report 2023 Annual Report 165 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. 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). 2023 Annual Report 166 Contacts Shareholder relations contact shareholders@partnersgroup.com Media relations contact media@partnersgroup.com www.partnersgroup.com/en/linkedin/ www.partnersgroup.com Zug – Zugerstrasse 57 6341 Baar-Zug Switzerland T +41 41 784 60 00 Denver – 1200 Entrepreneurial Drive Broomfield, CO 80021 USA T +1 303 606 3600 Houston – Williams Tower 2800 Post Oak Blvd. Suite 5880 Houston, TX 77056 USA T +1 346 701 3900 Toronto – Exchange Tower 130 King Street West Suite 2830 Toronto, ON M5X 1E2 Canada T +1 416 521 2530 New York – The Grace Building 1114 Avenue of the Americas, 37th Floor New York, NY 10036 USA T+1 212 908 2600 São Paulo – Rua Joaquim Floriano, 1120 – 11º andar CEP 04534-004, São Paulo – SP Brazil T +55 11 3528 6500 Paris – 29-31 rue Saint Augustin 75002 Paris France T +33 1 70 99 30 00 Dubai – Office 1606, Level 16 Index Tower, DIFC P.O. Box 507253 Dubai, UAE T +971 4 316 9555 Luxembourg – 35D, avenue J.F. Kennedy L-1855 Luxembourg B.P. 2178, L-1021 Luxembourg T +352 27 48 28 1 Mumbai – 601, 6th Floor, Piramal Tower Peninsula Corporate Park Ganpatrao Kadam Marg, Lower Parel Mumbai-400013 India T +91 22 4289 4200 Singapore – 8 Marina View Asia Square Tower 1 #37-01 Singapore 018960 T +65 6671 3500 London – The JJ Mack Building 33 Charterhouse Street London, EC1M 6HA United Kingdom T +44 20 7575 2500 Milan – Via della Moscova 3 20121 Milan Italy T +39 02 888 369 1 Guernsey – P.O. Box 477 Tudor House, Le Bordage St Peter Port, Guernsey Channel Islands, GY1 6BD T +44 1481 711 690 Munich – Lenbachpalais Lenbachplatz 3 80333 Munich Germany T +49 89 383 89 240 Shanghai – Unit 1904-1906A, Level 19 Tower I, Jing An Kerry Center No. 1515 West Nanjing Road Jing An District, Shanghai 200040 China T +86 21 2221 8666 Seoul – 25th Fl. (Gangnam Finance Center, Yeoksam-Dong) 152 Teheranro Gangnam-Gu, Seoul 06236 South Korea T +822 6190 7000 Tokyo – Marunouchi Park Bldg. 6F 2-6-1 Marunouchi, Chiyoda- ku Tokyo 100-6906 Japan T +81 3 5219 3700 Manila – 18/F Seven/NEO Building 5th Avenue Corner 26th Street Bonifacio Global City, Taguig Metro Manila 1634 Philippines T + 632 8 804 7100 Sydney – Level 32, Deutsche Bank Place 126 Phillip Street Sydney NSW 2000 Australia T +61 2 8216 1900

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