Annual Report 2024
Contents
3
Key figures
5
Message from the Chairman and the CEO
8
2024 at a glance
8
Investments
15
Clients
20
Outlook 2025
21
Financials
35
Key definitions and alternative performance metrics (APM)
38
Consolidated financial statements
106
Financial statements of Partners Group Holding AG
122
Compensation Report
156
Corporate Governance Report
186
Contacts
Annual Report 2024
2
USD
billion 152
Total assets under
management1
CHF
million 1'357 EBITDA2
CHF
per share 42.00
Proposed
dividend3
CHF
million 1'128
Profit
Annual Report 2024
3
1 As of 31 December 2024, as defined in the key definitions and alternative performance metrics section of the Annual Report 2024 on page 35-37.
2 Earnings before interest and taxes, depreciation and amortization as defined in the key definitions and alternative performance metrics section of
the Annual Report 2024 on page 35-37.
3 Partners Group's Board of Directors will propose an increased dividend of CHF 42.00 per share to its shareholders at the Annual General Meeting on 21 May 2025.
As our firm continues to grow, we remain committed to
driving forward our strategy of delivering sustainable
returns through a focus on transformational investing,
bespoke client solutions, and positive stakeholder impact.
2024 was a transition year as the industry continued to
navigate low activity levels and a changing macroeconomic
landscape throughout the majority of the period. We are
pleased to report a solid set of financial results along with
robust operational performance across the businesses and
assets under our stewardship.
Key
Figures
Assets under management as of the end of the year (in USD bn)
152.3
146.9
Revenues (in CHF m)4
2'136
1'945
EBITDA (in CHF m)5
1'357
1'234
EBITDA margin
63.6%
63.4%
EBIT (in CHF m)5
1'309
1'193
EBIT margin
61.3%
61.3%
Financial result (in CHF m)
61
16
Profit (in CHF m)
1'128
1'003
Shareholders' equity (in CHF m)
2'414
2'427
Return on shareholders' equity (ROE)5
47%
41%
Equity ratio5
42%
51%
Key performance indicators
2024
2023
Share price (in CHF)
1'230
Total shares
26'700'000
Market capitalization (in CHF bn)
32.8
Free float6
84.88%
Diluted shares (weighted average)
26'178'036
Diluted earnings per share (in CHF)
43.08
Dividend per share (in CHF)7
42.00
Bloomberg ticker symbol
PGHN SW
Reuters ticker symbol
PGHN.S
Share information as of 31 December
2024
Key Figures
Annual Report 2024
4
4 Revenues from management services, net, including other operating income.
5 As of 31 December 2024, as defined in the key definitions and alternative performance metrics section of the Annual Report 2024 on page 35-37.
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 21 May 2025.
Annual General Meeting of
shareholders 2025
21 May 2025
Ex-dividend date
23 May 2025
Dividend record date
26 May 2025
Dividend payment date
27 May 2025
Announcement of AuM
as of 30 June 2025
15 July 2025
Publication of Interim Financial
Results & Report as of 30 June 2025
2 September 2025
Corporate
Calendar
Dear clients, business
partners, shareholders, and
colleagues,
As we reflect on 2024, we are pleased to share
with you Partners Group’s progress and
achievements during what has been a pivotal
year for our firm.
Throughout the period, we laid the foundations
for future growth with a number of key strategic
initiatives. We took advantage of a consolidating
market by making a key acquisition for our real
estate business. We launched our fifth asset
class – royalties – further extending our
investment capabilities. We also organically
expanded our growth equity investment
strategies. Our investment activity increased by
more than 60% in 2024, meaning we captured
more than our fair share of the industry’s gradual
recovery. We were also successful in converting
our exit pipeline into several notable realizations
in the second half of the year.
In private wealth, our evergreen funds reported
their strongest fundraising year ever. While
allocations to private markets from individual
investors remain low, we believe that these
allocations will grow towards those of
institutional investors over the next decade. We
further addressed this allocation gap by
partnering with large distribution partners to
continue to create innovative portfolio solution
for wealthy individuals.
These strategic initiatives, combined with our
ability to provide bespoke private markets
portfolio solutions, drove new client demand. We
are honored that our clients entrusted us with
USD 22 billion in new assets, bringing our total
Assets under Management (AuM) to USD 152
billion as of 31 December 2024.
We are particularly pleased to report that our
portfolio of businesses and assets continues to
perform strongly, contributing to our solid
financial results. In light of this performance, and
our strong balance sheet, the Board of Directors
will propose a dividend of CHF 42.00 per share
at the upcoming Annual General Meeting in May
2025, representing a CHF 3.00 per share
increase from the previous year.
Annual Report 2024
5
Steffen Meister Executive Chairman (left)
David Layton Chief Executive Officer (right)
Message from
the Chairman
and the CEO
Taking advantage of a consolidating
market
—
As the private markets industry continues to
mature, we anticipate that it will consolidate
around platforms that offer clients cross-asset-
class solutions and have institutional-quality
resources to drive outperformance. This shift
will be partly driven by institutional clients
concentrating their future allocations with larger
relationships and partially by individual investors,
which are gravitating towards semi-liquid
offerings.
This market dynamic provides Partners Group
with the opportunity to selectively acquire
culturally aligned managers focused on
strategies that complement our existing
investment business.
We are enhancing vertical depth within our Real
Estate business through that strategy. We
announced the acquisition of Empira Group in
December 2024. Empira Group was founded in
2014. It is a vertically integrated real estate
investment manager with a focus on the DACH
region and a portfolio that has a Gross
Development Value of EUR 14 billion. Empira
Group's investment strategies include European
residential; US residential; transition to green,
which involves creating value through
sustainability initiatives; and real estate credit.
Our acquisition of Empira Group marks a
milestone for our real estate business and
follows earlier strategic minority investments in
Trinity Investments, a US-based operator
focused on the hospitality sector, and Citivale, a
UK-based logistics real estate developer and
asset manager.
Expanding our investment universe
—
In 2024, we broadened our investment universe
to be able to offer clients more comprehensive
portfolio solutions. Private markets royalties
became our fifth asset class. We are building the
first dedicated, scalable multi-sector royalty
offering in the industry and have significantly
expanded our royalty investment portfolio,
which now comprises 30 investments across
diverse sectors including entertainment,
pharmaceuticals, and energy transition,
providing a low correlation to other asset
classes.
We also organically expanded our growth equity
business to better serve increasing demand
from clients. This strategy, which targets high-
growth companies, leverages the firm's thematic
research and is particularly relevant for the
global technology and healthcare sectors. We
pursue both growth buyouts, which involve
companies with scaled revenues and early
profitability, and minority stakes in less mature
companies. Partners Group has now deployed
over USD 2.5 billion in this space to date.
Transformational investing
—
In 2024, we continued to identify investment
themes supported by long-term secular trends
and to create value through asset
transformation. This thematic investment
approach helped us to originate USD 22 billion
of new investments for clients during the period;
up 66% on 2023 and outpacing the industry's
17% growth. North America continues to offer a
large opportunity set for investments and
remains the most relevant investment region for
Partners Group. The firm has invested over USD
100 billion across asset classes there to date,
making it one of the largest non-US
headquartered private markets managers to be
active in the region. As of 31 December 2024,
Partners Group's total investment exposure to
North America stands at approximately 45% of
AuM, with the region also accounting for 45% of
total new investments in 2024.
For example, in September, Partners Group
completed a USD 1.9 billion equity investment in
portfolio company EdgeCore Digital
Infrastructure, which included significant
syndication from our clients. EdgeCore is a
leading developer, owner, and operator of
hyperscale data centers in the US. The
investment will fund the continued development
and expansion of its data center platform, to
capitalize on accelerating demand for data
processing and compute storage as the
adoption of generative AI, cloud computing, and
5G technologies broadens.
Outside of North America, Partners Group
acquired Benelux-based Eteck, a market-
leading provider of sustainable decentralized
heating and cooling solutions, in September.
Eteck benefits from resilient and predictable
infrastructure characteristics, including long-
term contracts of up to 30 years, high barriers to
entry, and a supportive regulatory framework.
Partners Group plans to transform Eteck into a
decentralized energy solutions platform by
further digitizing the business and expanding its
footprint internationally.
Strong realizations in H2
—
We reported significant progress in our exit
pipeline, particularly in the second half of 2024,
with realizations increasing by 53% year-on-
year to USD 18 billion. This was driven by both
equity and credit investments outperforming the
generally muted buyout market.
We attribute this achievement to our hands-on,
transformational value creation approach, which
has proven effective even in challenging market
conditions. Our four largest exits and IPOs
across private equity and infrastructure
demonstrated substantial value creation. Their
average valuation uplifts exceeded 40% upon
Message from the Chairman and the CEO
Annual Report 2024
6
exit compared to valuations held six months
prior.
Key transactions included Techem, sold to TPG
for EUR 6.7 billion in Europe's largest buyout in
2024, and VSB Group, which we agreed to sell
to TotalEnergies for EUR 1.6 billion. Two notable
IPOs also occurred in the final quarter of last
year. In October, we listed KinderCare Learning
Centers on the NYSE in the US' third-largest IPO
that quarter. In December, we listed Vishal Mega
Mart on the National Stock Exchange and
Bombay Stock Exchange in India, generating the
largest capital gain in Indian private equity
history. While exit activity increased
substantially in the second half of 2024, most
proceeds to clients were moved into 2025 and
beyond due to ongoing closing processes and
standard IPO lock-up periods. Looking ahead,
we anticipate continued improvement in the
transaction environment and expect the pace of
realizations to normalize.
Record fundraising year for private wealth
—
Bespoke client solutions, which include
customized mandates and evergreen solutions,
are still a relatively niche segment of the overall
private markets industry. For Partners Group,
however, they have always been part of our DNA
– bespoke solutions now make up 71% of our
AuM. We believe that clients across the
spectrum will increasingly move towards holistic
and bespoke private markets portfolio solutions
in place of single-strategy products.
While overall allocations to private markets from
private wealth investors remain low at <1% on
average, we believe that they will grow towards
those of institutional investors over the next
decade. We are proud to report that in 2024 our
suite of evergreen funds had their strongest
fundraising year in our 20+ years of experience
with these solutions. This was driven by the
continued build-out of our private wealth
distribution network.
In 2024, we launched seven new evergreen
solutions, bringing our total product shelf to over
20 funds across asset classes. We have
carefully designed and built these solutions with
a view to creating industry-leading products that
can provide sustainable returns to investors.
Solid revenue development driven by
performance fees
—
USD AuM growth of 4% translated into an
average AuM growth in CHF of 4% year-on-
year. Management fees increased by +3% and
grew broadly in line with average AuM in CHF,
amounting to CHF 1'625 million. Performance
fees increased 38% to CHF 511 million,
representing 24% of total revenues. Taken
together, total revenues rose by 10%. EBITDA
increased proportionally with revenues up by
10% year-on-year to CHF 1'357 million. Our
EBITDA margin remained stable at 63.6%. Profit
for the period amounted to CHF 1'128 million,
increasing 12%.
Outlook
—
We have laid strong foundations for our firm's
future growth and are well-positioned to
capitalize on the opportunities on offer as our
industry continues to evolve. We approach 2025
with optimism, buoyed by sustained demand for
our bespoke solutions and a robust business
development pipeline. These are anticipated to
translate into total new client assets in the range
of USD 26-31 billion for 2025. 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.
Yours sincerely,
Steffen Meister
Executive Chairman
David Layton
Chief Executive Officer
Message from the Chairman and the CEO
Annual Report 2024
7
Market environment
—
In 2024, we focused on what we build and on
investing capital behind investments that stand
to benefit from the most attractive
transformative trends.
The private markets industry experienced mixed
results in 2024, with modest improvements in
overall transaction volumes, as equity
investments increased by 17%1 compared to
2023. However, industry buyout exit activity
decreased by 12%2 over the same period
underlining that the industry continues to be in a
period of transition.
In this challenging environment, our operating
playbook proved to be an invaluable asset.
Supported by a network of over 500 experts
and operators, we dynamically utilize this
playbook to capitalize on strategies, build
conviction in our investment choices, and
navigate more challenging environments
through hands-on, active value creation. Guided
by our investment approach, we successfully
increased our investment activity by 66% and
total realizations by 53% in 2024. This increase
underscores the effectiveness of our playbook
in delivering consistent results for our clients,
even in fluctuating market conditions.
We invested USD 22 billion into
attractive transformative
companies and assets
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
environment.
Our thematic sourcing, which involves extensive
research to identify high-conviction ecosystems
underpinned by secular growth tailwinds, is our
foundation. Once we identify the theme, 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, aiming to
originate all our control investments through our
Annual Report 2024
8
1 Preqin as of 31 December 2024; data set consists of funds with final close and represents the year in which they held their final close;
infrastructure, private equity (excl. venture capital strategy), and real estate.
2 Preqin as of 31 December 2024; data set includes all buyout exits.
2024
at a glance –
Investments
thematic research. 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
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's 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, sector,
and geographic diversification in any given
macro backdrop. Together we believe our
transformational investing approach and leading
portfolio solutions capabilities will continue to
deliver long-term sustainable returns for our
clients.
Investments 20243
—
In 2024, we secured USD 21.9 billion (2023: USD
13.2 billion) of attractive investment
opportunities into private businesses, assets,
and portfolios, an increase of 66% versus low
2023 levels. The firm deployed USD 12.9 billion
into direct assets (59% of total investment
volume), of which USD 8.7 billion was committed
as equity and USD 4.2 billion was committed to
corporate direct lending.
Partners Group campus | Baar-Zug, Switzerland
Partners Group's private markets investments
(in USD bn)
17
10
32
26
13
22
2019
2020
2021
2022
2023
2024
To complement our direct investments, we
invested USD 8.9 billion into portfolio assets
(41% of total investment volume). These
portfolio assets include USD 4.6 billion of
secondary investments, USD 1.6 billion of select
primary commitments to other third-party
private markets strategies, and USD 2.7 billion
into broadly syndicated loans.
USD 22 billion private markets investments in
2024, shown by investment strategy4
Direct equity
40%
Direct credit
19%
BSL
12%
Primaries
8%
Secondaries
21%
Europe was the most active region for our
investment business, accounting for USD 10.6
billion or 48% of all 2024 investment
commitments versus USD 9.9 billion or 45% in
North America. We invested the remaining USD
1.4 billion or 6% in Asia-Pacific & Rest of World.
2024 at a glance - Investments
Annual Report 2024
9
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.
3 All investments referenced herein were made on behalf of our clients. As of 31 December 2024. 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 2024, figures exclude syndication partner investments.
4 As of 31 December 2024. Figures include add-on investments and syndication partner investments. Prior to 2024, 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.
Portfolio performance
—
Our transformational investment strategy
resulted in another year of solid performance
across our portfolio. The Net Asset Value (NAV)
development of our direct lead transactions, net
of fees, for the 12-month and 10-year period
ending on 31 December 2024 is provided in the
following table.
Net returns of direct portfolio performance5,6,7
1-year
10-year
IRR
(inception)
Private equity
10.4%
16.1%
21.6%
Private credit
8.7%
6.3%
6.9%
Infrastructure
13.3%
13.9%
22.6%
Real estate
(6.7%)
2.5%
10.0%
Private equity
—
Private equity showed a solid performance in
2024, with our direct portfolio achieving a 10.4%
net return, showcasing the results of our robust
value creation initiatives on asset level across
thematically growing sectors. This result was
driven by continued strong operational
performance and growth across the direct
private equity portfolio. Long-term private equity
returns remain solid, outperforming other
private markets asset classes over the past
decade (16.1% net returns over the last 10 years).
Partners Group attributes this success to its PG
Business System, which is our way to
systematically manage our assets. Once
winning business models are selected and
under our control, the PG Business System
focuses on putting a superior leadership team in
place that drives operational excellence and
executes on strategic value creation initiatives.
Through a collaborative onboarding process, we
ensure strong alignment with the leadership
teams to unlock resources necessary to drive
transformation of business.
We invested USD 7.8 billion in
private equity
In private equity, we invested USD 7.8 billion into
attractive well-positioned businesses and
assets. Our teams were actively researching
over a hundred themes to map out entire
ecosystems and search for the best derivatives
of mega trends driving change and growth in the
real economy. From there our teams selected a
core group of themes to focus on and to build
our investment pipeline around, including growth
equity opportunities within healthcare and
technology.
One example of this strategy is our investment in
FairJourney Biologics, a leading company in
antibody research. We identified FairJourney
Biologics several years ago within our theme of
"biopharmaceutical research and development."
Headquartered in Porto, Portugal, FairJourney
Biologics offers services for the discovery,
production, and characterization of antibodies.
The company supports over 250 clients
worldwide and has developed more than 4'000
unique screening libraries used to identify
antibodies.
FairJourney Biologics
We will leverage our operational expertise to
further expand FairJourney Biologics'
technology and enhance the efficiency of drug
development for our partners. Additionally, we
will introduce customer centricity into the
currently technology-focused corporate culture
and explore new markets that are crucial for
achieving goals in biopharmaceutical research.
Private credit
—
Private credit delivered a strong performance of
8.7% net returns across Partners Group's credit
platform over the past year (6.3% net returns
over the last 10 years), in particular relative to the
other asset classes. While the private credit
2024 at a glance - Investments
Annual Report 2024
10
5 Currencies were converted to USD based on 31 December 2024 FX rates. Source: Bloomberg.
6 As of 31 December 2024. Partners Group model net return data year-to-date ("YTD") 2024 as of 31 December 2024. 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.
7 As of 31 December 2024. All cash flows and valuations have been converted to USD using fixed exchange rates as of the report date. Model net returns assume Partners Group standard management and performance fees. The 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 fees, ongoing operating costs or expenses incurred by the investment program (e.g. audit, hedging) or cash drag.
Private equity includes private equity directs investments (excluding early-stage venture), where PG Role is joint lead or lead, which are partially realized or fully realized, that Partners Group made on behalf of its clientele.
Private credit includes private debt first lien and second lien and mezzanine and special situation investments, which are partially realized or fully realized, that Partners Group made on behalf of its clientele.
Infrastructure includes infrastructure directs investments, where PG Role is lead or joint lead, which are partially realized or fully realized, that Partners Group made on behalf of its clientele.
Real estate includes real estate directs equity and directs debts investments, which are partially realized or fully realized, with projects including Real Estate Opportunities related only, that Partners Group made on behalf of its clientele.
The performance presented reflects model performance and does not represent performance that any investor actually attained.
market is increasingly broad and diverse, 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.
We aim to continue to deliver market-leading,
risk-adjusted returns while maintaining low
default and loss rates through different market
cycles. By applying our thematic approach and
leveraging our expertise in sectors such as IT &
software, logistics, semiconductors, and
manufacturing, Partners Group has declined
around 90% of new investments over the past
five years, carefully selecting only the most
resilient assets for our clients. We continue to be
disciplined in underwriting, especially as some
market participants face pressure to deploy
capital.
USD 7.1 billion invested in credit
throughout the year
We invested USD 7.1 billion into private credit
and liquid loans. One notable example being the
financing we provided to Treysta, a leading
provider of infrastructure engineering services
in Germany. Our conviction in the Energy
Engineering sector is built on significant market
tailwinds driven by megatrends such as energy
transition and mobility transformation. The
company has a strong track record in this space,
with a diversified customer base of over 600
clients, primarily in the public sector, resulting in
high visibility of revenue and resilient cash flows.
Treysta's strategy of strategic acquisitions to
broaden services and expand regional expertise
to a national level positions them well to
capitalize on increasing infrastructure
investments in the energy sector. Our ability to
provide comprehensive financing solutions set
us apart. We provided various solutions for this
transaction, unitranche debt and Acquisition and
Capex facilities (ACF), to support Treysta's
growth and strategic initiatives.
Infrastructure
—
Infrastructure has delivered consistent and
strong performance, with 13.3% net returns over
the past year in line with our long-term
performance of 13.9% net returns over the last
10 years. Our approach of building next-
generation infrastructure platforms is about
growing and transforming businesses and
assets for the future. 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.
For example, we believe that investors focused
on decarbonization infrastructure must broaden
their investment criteria beyond greenhouse gas
emissions reduction, taking geopolitical factors
into account during the underwriting process.
When evaluating new investments, we believe it
is crucial that they are economically viable even
in the absence of decarbonization incentives.
This means scrutinizing aspects such as
affordability and security of supply.
We invested USD 4.7 billion into
new infrastructure assets
In 2024 we invested USD 4.7 billion into new
infrastructure assets during the year which
exhibit the characteristics we think are essential
today. One of our investments from July 2024
was Eteck, a market-leading provider of
sustainable energy solutions in the Netherlands.
Eteck offers these essential services for
residential and commercial properties.
Specializing in low-temperature heat pumps, the
company supplies over 100'000 connections
nationwide.
We identified Eteck through our
decarbonization thematic and work on the
2024 at a glance - Investments
Annual Report 2024
11
Gateway Fleets
sustainable heating and cooling solutions
market. Eteck benefits from resilient and
predictable infrastructure characteristics,
including long-term contracts, high entry
barriers, and a supportive regulatory framework.
We plan to transform Eteck into a decentralized
energy solutions platform working closely with
management to accelerate organic growth,
diversify the portfolio of customer solutions,
implement digitization initiatives, and expand the
footprint internationally. By leveraging our
experience in building district heating platforms
and energy-as-a-service providers, we aim to
help Eteck capitalize on the growing demand for
sustainable heating and cooling solutions.
Another example is our September 2024
investment into Gateway Fleets, a provider of
electrification solutions for logistics fleet
operators in the US. We identified the company
through our deep thematic research into New
Mobility, which is a giga theme that looks at the
infrastructure required to support changing
consumer and societal trends. The company is
set to benefit from thematic tailwinds driving
demand for fleet electrification, including
corporate decarbonization goals.
Gateway Fleets offers a solution-as-a-service
model, providing all necessary equipment,
including electric vehicles and charging
services, to enable logistics fleet operators to
transition to electric vehicles at no upfront cost.
We plan to transform Gateway Fleets into a
world-class electrification-as-a-service platform
through our value creation plan. Our initiatives
include strategically expanding depot sites and
appointing three operating directors to drive the
company's growth. We will actively leverage
Gateway's existing customer relationships and
development model to rapidly scale the
business, positioning it to capture a significant
share of the $15 billion US EV fleet charging
market by 2030.
Real estate
—
The real estate market is going through the most
disruptive changes in decades due to both the
cyclical impact of higher interest rates impacting
valuations and liquidity but perhaps more
importantly the structural changes impacting
occupier demand.
We continue to capture continued Net
Operating Income (NOI) growth in all our high-
conviction sectors (residential, industrial and
hospitality) across our direct portfolio. Today,
we have invested over $25 billion in Gross Asset
Value in high-conviction themes that address
disruptive forces in the market and focus on
thematic investing and vertical integration. The
office sector, particularly in North America and
Europe, remains challenged on operational KPIs,
which weighs on performance, prompting us to
reduce our office exposure further from 55% in
2019 to 20% in 2024.
For example, to benefit from the impact of
e-commerce, we are investing in consumer
supply chain assets such as last-mile logistics,
outdoor storage as well as self-storage.
Similarly, to adapt to trends like generation rent
and hybrid working, we are increasing
investments in urban living, and lifestyle
residential properties.
In December 2024, we signed the acquisition of
Empira Group to enhance our vertical
integration in sectors like residential and
transition to green assets with a focus on the
DACH region. The transaction closed early
January 2025. At the time of signing, Empira
Group managed AuM of EUR 4 billion and a
portfolio with a Gross Development Value of
around EUR 14 billion. The acquisition marks a
milestone in the realization of our real estate
strategy and follows earlier strategic minority
investments in Trinity Investments, a US-based
operator focused on the hospitality sector, and
Citivale, a UK-based logistics real estate
developer and asset manager.
USD 2.2 billion invested into real
estate amid challenging
macroeconomic environment
In 2024, we invested USD 2.2 billion in new and
existing real estate assets and platforms,
including our investment into BLUESEA Hotels,
a leading hospitality platform in Spain which
specializes in the three- to four-star hotel
segment. Today, they operate a portfolio of 25
hotels with around 5'100 rooms in popular
tourist destinations such as the Balearic and
Canary Islands, Costa Brava, Costa del Sol, and
Madrid.
BLUESEA Hotels
We identified BLUESEA through our focus on
the hospitality sector, which is benefiting from
multiple tailwinds including the resurgence of
both domestic and international tourism, the
recovery of business travel, and the structural
undersupply of hotel rooms. We were
2024 at a glance - Investments
Annual Report 2024
12
particularly attracted to BLUESEA as it benefits
from resilient and predictable infrastructure
characteristics, including high barriers to entry
and a supportive regulatory framework.
During our ownership, we will focus on
transforming BLUESEA into a premier
hospitality platform by refurbishing existing
sites, expanding ancillary service offerings,
improving operational efficiency, and expanding
the current hotel portfolio with new acquisitions.
Private markets royalties
—
In 2024, we launched the industry's first
dedicated, scalable multi-sector royalty
strategy. We have a high conviction in private
markets royalties as an asset class that
complements our existing offering. Today, our
research estimates the total private markets
royalty opportunity to exceed USD 2 trillion in
size.
Our royalty investments span multiple sectors,
providing low correlation to traditional financial
markets and offering potential non-cyclical
economic exposure. These investments
generate ongoing cash yields and are largely
self-liquidating, reducing their risk profile. Our
structured approach ensures clarity and control
over payment terms, akin to private credit
instruments, while also offering potential upside
driven by the underlying asset’s performance.
As a leader in evergreen funds, we can use these
perpetual structures to align the lifetime of our
investments with the typically long duration of
royalty assets. This enables us to underwrite
assets on a hold-for-life basis, allowing us to
achieve our base case returns without
depending on an exit.
Private markets royalty
opportunity estimated to exceed
USD 2 trillion in size
In 2024, we built a substantial investment
pipeline and invested in new royalties assets as
part of our seed portfolio, which as of 31 January
2025 includes 30 investments across diverse
sectors. In 2025, on behalf of our clients, we
invested into Warner Bros. Discovery's catalog
of film and television music rights. The catalog
consists of over 500 titles, including some of the
highest rated and most viewed film franchises
and television shows of all time, such as Harry
Potter, Lord of the Rings, Game of Thrones,
Succession, and Friends.
Realizations in 2024
—
Our portfolio realizations in 2024 amounted to
USD 17.7 billion (2023: USD 11.5 billion), marking
a 53% increase compared to the previous year.
This significant growth was primarily driven by
our hands-on transformational value creation
initiatives, which enabled us to achieve
successful exits even in a challenging market.
Noteworthy exits in 2024 included the sale of
Techem for approximately EUR 6.7 billion,
making it the largest buyout exit in Europe of the
year at the time of signing. Furthermore, we
successfully listed KinderCare Learning
Centers on the NYSE, marking the third-largest
IPO in the US during Q4 2024. In India, the Vishal
Mega Mart IPO set a new record for capital
gains in Indian private equity. This was
complemented by the successful divestment of
VSB Group to TotalEnergies for EUR 1.57 billion,
significantly surpassing our internal valuation. In
real estate, our investment in Annington is
projected to yield a 3.2x net multiple on invested
capital, showcasing our ability to transform
underutilized assets into high-value properties.
Partners Group's portfolio realizations
(in USD bn)
12
29
14
12
18
2020
2021
2022
2023
2024
We provide further details on a selection of our
2024 exits below.
In October 2024, we announced on behalf of our
clients the sale of Techem. The company is an
international provider of digitally enabled
solutions for the building ecosystem, serving
over 428'000 customers in 18 countries and
managing more than 13 million dwellings.
During our ownership, we transformed Techem
from a traditional energy services provider to a
leader in digital solutions for energy efficiency in
buildings. We achieved this by driving
transformation programs across three key
areas: digital transformation, international
expansion, and service diversification.
On digital transformation, we improved the
operating model and customer experience by
digitizing processes and enhancing the service
and sales organization. This made Techem's
core submetering service more efficient and
operationally competitive.
Together, these efforts resulted in a period of
strong growth with revenues reaching over EUR
1 billion and EBITDA growing by c. 50%. The
transaction gave the company an enterprise
value of EUR 6.7 billion. In H2 2024, the exit
process progressed to the stage where
performance fees were recognized in 2024.
Closing for the transaction is expected in 2025.
2024 at a glance - Investments
Annual Report 2024
13
Another significant exit that we announced in
2024, on behalf of our clients, was KinderCare
Learning Centers. Under our ownership the
company became the largest provider of high-
quality early childhood education in the US by
center capacity, serving over 200'000 children
across 2'400 centers and sites and employing
more than 43'000 teachers and staff.
Since we acquired the company, we supported
KinderCare's business transformation to
optimize center footprint, drive compound
same-center revenue growth, and increase
same-center occupancy. KinderCare also
invested in curriculum, human capital, and
technology infrastructure to accelerate growth
and strengthen the company's commitment to
quality. KinderCare was IPO'd and began trading
on the New York Stock Exchange on 9 October
2024.8 At IPO price, the company had a USD 2.7
billion market cap and represented a Money-
Over-Invested-Capital (MOIC) of more than 3x
for our clients. Further, performance fee
recognition is expected over the next few years
as we continue to hold a significant ownership in
the company.
In October 2024, we successfully realized our
preferred equity investment in Idemia, a global
leader in identity and security services for
governments, financial institutions, and mobile
network operators. This investment was made in
the context of the merger between Oberthur
Technologies and Morpho. This realization has
resulted in a TVPI of approximately 2.2x and an
IRR of around 12%. We anticipate further value
from warrants, which could potentially generate
an additional return in the next 18-24 months.
We also announced the exit of VSB Group in
December 2024 which we exited to Total
Energies with an equity value of EUR 1.6 billion.
The transaction is expected to close in H1
2025.The company is a leading renewable
energy platform in Europe, operating throughout
the renewable energy value chain. It develops,
builds, owns, and manages renewable projects,
and provides technical and commercial
management services for third-party assets, as
well as e-mobility solutions.
During our ownership, we successfully
transformed VSB from a mid-sized renewables
developer into a leading pan-European
renewables platform by executing on a set of
key strategic initiatives. This included,
expanding VSB's project pipeline from 8 GW to
over 18 GW, more than doubling its size. In
addition, we grew the company's operational
and under-construction capacity from 53 MW to
over 475 MW, diversified across wind, solar PV,
battery storage, and e-mobility technologies and
improved talent management. Our value
creation plan resulted in a five-fold increase in
EBITDA over our ownership.
In December 2024, we also announced the IPO
of Vishal Mega Mart, a leading retailer in India,
serving middle- and lower-middle income
consumers. Vishal operates a pan-Indian
network of over 640 stores, with a total retail
space of 11.5 million sq. ft., catering to around
225 million households and over 945 million
individuals.
During our ownership, we supported Vishal's
business transformation to optimize store
footprint, drive double-digit same-store sales
growth, and implement operational efficiency
improvements. These efforts led to a 55%
increase in EBITDA and a 60% rise in revenues
over the last two years of our holding period. At
IPO price, Vishal had a fully diluted equity value
of INR 370bn and represented a MOIC of more
than 7x for our clients.
On 18 December 2024, Vishal began trading on
the National Stock Exchange. As part of the IPO,
we sold approximately 23% of our ownership in
Vishal. Further, performance fee recognition is
expected over the next few years as we
continue to hold a significant ownership in the
company.
2024 at a glance - Investments
Annual Report 2024
14
8 Following the IPO, funds affiliated with or advised by Partners Group hold approximately 71% of KinderCare's common stock.
Vishal Mega Mart
Fundraising environment
—
In a year marked by persistently low distribution
levels and slowly improving investment activity,
we were pleased to be able to deliver continued,
solid AuM growth. Industry-wide, slower client
conversion periods due to generally low
distribution activity in private markets translated
into 28%1 lower fundraising from 2023 levels.
During the same period, Partners Group
delivered 18% growth in gross client demand.
This highlights the notion that amid longer client
conversion periods, we have observed that a
disproportionate share of commitments
continue to be allocated to well-established,
diversified platforms such as Partners Group.
Increasingly, fundraising is concentrated
amongst these larger firms, allowing them to
gain market share in an environment of lower
fundraising activity. These platforms typically
offer differentiated solutions across private
market asset classes as well as the capability to
invest across the entire capital structure. In
2024, the top 25 managers accounted for 40%2
of all funds raised in the industry, the highest
concentration since 2008. This trend is
expected to continue.
Partners Group AuM (USD bn, 31 December)
57
83
109
135
152
2016
2018
2020
2022
2024
Clients
—
Robust client demand for our bespoke solutions
highlighted the strength of our integrated
platform as we had a record year for private
wealth fundraising.
Annual Report 2024
15
1 Source: Preqin, includes private equity, private infrastructure (excluding Core & Core Plus) and private real estate
(excluding Core & CorePlus) as of 31 December 2024. Data pulled on 17 January 2025.
2 McKinsey Global Private Markets Review 2025 (February 2025).
2024
at a glance –
Clients
We raised USD 21.5 billion, bringing our total
AuM to USD 152.3 billion as of 31 December
2024 (31 December 2023: USD 146.9 billion), an
increase of 4% year-on-year. Excluding FX
effects this translates into an increase of 7%
over the period.
Partners Group fundraising (USD bn)
17
16
25
22
18
22
2019
2020
2021
2022
2023
2024
Next to 2024 fundraising, AuM growth was
supported by the performance across Partners
Group's private markets portfolios, which led to
a positive contribution of USD 2.2 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 -9.2 billion while redemptions
from evergreen programs accounted for USD
-4.7 billion. Foreign exchange effects had a
negative impact on underlying AuM growth of
USD -4.4 billion, in particular due to the
appreciation of the USD against EUR. Taking
these factors into account, we had a net AuM
growth of USD 5.4 billion during the period.
The breakdown of total AuM across asset
classes as of 31 December 2024 is as follows:
USD 77.6 billion in private equity, USD 31.5 billion
in private credit, USD 27.4 billion in
infrastructure, USD 15.6 billion in real estate, and
USD 0.2 billion in royalties.
AuM by asset class (as of 31 December 2024)
Private equity
51%
Private credit
21%
Infrastructure
18%
Real estate
10%
Royalties
0.1%
Private equity was the largest contributor to
assets raised in 2024, representing 40% (USD
8.7 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 strong inflows, which
represented 33% (USD 7.0 billion) of all new
commitments. Demand was spread over
different programs and mandates, including our
liquid loans and CLOs focused on
broadly syndicated loans (46% of private credit
assets raised), as well as our direct lending
activities, which contributed the other 54% of
new private credit commitments.
Client demand for infrastructure represented
20% (USD 4.3 billion) of new commitments as
institutional investors look to increase
allocations to private infrastructure. We also had
the first inflows from private individuals in our
newly launched next generation infrastructure
evergreen solutions.
2024 at a glance - Clients
Annual Report 2024
16
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 2024 NAV valuations.
Partners Group campus | Baar-Zug, Switzerland
New commitments in real estate represented
6% (USD 1.3 billion) of overall new client
demand, primarily stemming from our bespoke
mandates.
In 2024, we introduced our fifth asset class,
private markets royalties which represented
1% (USD 0.2 billion) of total commitments for the
period. After successfully raising our seed
portfolio, we have made meaningful progress
with our royalties evergreen solutions to focus
on the private wealth as well as institutional
market. We expect initial AuM contribution from
investors to begin mid-2025 with the potential
for a meaningful ramp-up as we progress
through the calendar year and beyond.
AuM growth and client demand (USD bn)4
AuM 2024
Last 5yr.
CAGR
Gross client
demand
2024
Private equity
77.6
12 %
8.7
Private credit
31.5
8 %
7.0
Infrastructure
27.4
18 %
4.3
Real estate
15.6
0 %
1.3
Royalties
0.2
N/A
0.2
Total
152.3
10 %
21.5
Client demand by product structure
—
Managing over 400 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 via mandates and evergreen
programs that match different clients' targets
remains unmatched in the industry and
accounted for 78% of our 2024 fundraising.
Mandates
39%
Evergreen programs
32%
Traditional client programs
29%
In 2024 mandates accounted for 39% (USD 8.4
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 2024, we manage 39% of our
AuM (USD 59.5 billion) in these solutions.
We had a record year of fundraising in 2024 for
our evergreen programs, which contributed
39% (USD 8.4 billion) of new commitments.
These programs allow for a certain amount of
liquidity to 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 three largest investment programs, which
are each globally diversified, accounted for 23%
of our AuM as of 31 December 2024. Our largest
evergreen has USD 17 billion in size. The
Partners Group Private Equity (Master Fund),
LLC is a 1940 Act registered fund catering for
US investors with predominantly private equity
content. Our second largest evergreen is our
Global Value SICAV which is focused on
European investors and as of 31 December
2024 is USD 10 billion in size. The Partners Fund
is our third largest evergreen program, USD 8
billion as of 31 December 2024, and tailors to our
global client base. As of 31 December 2024, we
manage 32% of our AuM (USD 48.0 billion) in
evergreen programs.
Besides these bespoke solutions, we continue
to offer traditional commingled funds with
multiple investors. These funds have been the
most impacted by slower client conversion
2024 at a glance - Clients
Annual Report 2024
17
4 Due to rounding, numbers might not add up.
5 Mature mandates capital weighted (only considers mandates that are at least 3 years old).
AuM by program structure (as of 31 December 2024)
rates. In 2024, 22% (USD 4.8 billion) of overall
inflows were raised via traditional private
markets programs. These are typically limited
partnerships with a pre-defined contractual life.
As of 31 December 2024, we manage 29% of
our AuM (USD 44.8 billion) in traditional private
markets programs.
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 (as of 31 December 2024)
Switzerland
16%
Germany
& Austria
16%
France &
Benelux
5%
Scandinavia
3%
United Kingdom &
Ireland
13%
Southern Europe
3%
North America
24%
South America
2%
Middle East
3%
Asia
7%
Australia
8%
2024 at a glance - Clients
Annual Report 2024
18
Public pension
funds & SWFs
22%
Corporate &
other pension funds
20%
Insurance companies
10%
Asset managers, family
offices, banks & others
27%
Distribution partners/
private individuals
21%
AuM by type (as of 31 December 2024)
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
2024 at a glance - Clients
Annual Report 2024
19
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 31 December 2024. Chart 1 illustrates the evolution of the client's mandate asset allocation from 30 June 2011 to 31 December 2024.
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.
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2024
asset
allocation
Asset
allocation
(various private
markets asset
classes )
Direct
participation
in asset and
portfolio
investments
Private credit
Real estate
PE primaries
PE secondaries
PE directs
Infrastructure
NAV development
USD 1.5 billion
Outlook 2025
—
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 2025, Partners Group expects
total new client assets of USD 26 to 31 billion.
This includes a guidance of USD 22 to 27 billion
in expected gross client demand from the firm's
existing business activities and USD 4 billion of
platform growth from the acquisition of Empira
Group.9 The firm bases its guidance on the large
and visible pipeline of fundraising opportunities
across the private wealth and insurance space in
2024, as well as other strategic collaboration
initiatives planned for the second half of the
year. The firm further guides for USD -9 to -10
billion in tail-down effects stemming from the
more mature closed-ended programs.
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 at a glance - Client outlook
Annual Report 2024
20
9 Empira Group is a vertically integrated real estate investment manager (www.empira-invest.com). Transaction closed in January 2025. No new debt financing and no new shares were issued.
2025 - Outlook
$26-31 billion
new client
assets target
Partners Group grew total AuM to USD 152.3
billion, representing a growth rate of 4% year-
on-year. In our reporting currency, this growth
translated into an average AuM growth in CHF of
4% year-on-year. Management fees increased
by +3% and developed broadly in line with
average AuM in CHF, amounting to CHF 1'625
million. Performance fees increased 38% to CHF
511 million, representing 24% of total revenues.
The marked increase resulted from an
improvement in the exit environment in
combination with strong value creation across
our portfolio. The success of several exits in the
second half of the year highlighted how our
approach, driven by hands-on transformational
value creation initiatives, generated significant
value for our clients amid a more difficult
environment. Taken together, total revenues
rose by 10% to CHF 2'136 million in 2024.
Over the same period, total operating costs1
increased by 9% to CHF 778 million, primarily
driven by higher variable performance fee-
funded personnel expenses which increased
40% to CHF 186 million in line with performance
fees up 38%. Altogether, EBITDA increased by
10% year-on-year to CHF 1'357 million. Our
EBITDA margin remained stable at 63.6%. Profit
for the period amounted to CHF 1'128 million,
increasing 12%.
For the financial year 2024, the Board proposes
a dividend increase of 8% to CHF 42.00 per
share based on the firm's strong revenue
development and a confident growth outlook
across all business lines.
Partners Group campus | Denver, USA
Annual Report 2024
21
Note: due to rounding, numbers might not add up.
1 In this report, 2024 and 2023 total operating costs exclude depreciation & amortization.
2024
at a glance –
Financials
2024 financials
AuM as of the end of the period (in USD bn)
152.3
146.9
+4%
AuM as of the end of the period (in CHF bn)
138.0
123.6
+12%
Average AuM as of 31 December (in CHF bn)2
130.2
125.0
+4%
Revenue margin2,3
1.64%
1.56%
Revenues (in CHF m)3
2'136
1'945
+10%
Management fees (in CHF m)4
1'625
1'575
+3%
In proportion of total revenues
76%
81%
Performance fees (in CHF m)
511
369
+38%
In proportion of total revenues
24%
19%
EBITDA (in CHF m)
1'357
1'234
+10%
EBIT (in CHF m)
1'309
1'193
+10%
Management Fee EBITDA (in CHF m) 5
1'033
998
+4%
Management Fee EBIT (in CHF m)6
985
956
+3%
Profit (in CHF m)
1'128
1'003
+12%
Dividend (in CHF per share)
42.00
39.00
+8%
As of 31 December
2024
2023
Growth
2024 at a glance - Financials
Annual Report 2024
22
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.
2 Based on average AuM, calculated on a daily basis.
3 Revenues from management services, net, including other operating income.
4 Management fees and other revenues, net, and other operating income.
5 Management fee EBITDA is defined in the key definitions and alternative performance metrics section of the Annual Report 2024 (page 35-37).
6 Management fee EBIT is defined in the key definitions and alternative performance metrics section of the Annual Report 2024 (page 35-37).
Performance
fees expected to
account for
20-30% of
revenues for 2025
and 25-40% from
2026 onwards
Management fee growth in line with
average AuM growth
—
Management fees increased by 3%, in line with
average AuM in CHF (+4%), amounting to CHF
1'625 million (2023: CHF 1'575 million) or 76% of
total revenues (2023: 81%). Management fees
benefited from other revenues & other operating
income that meaningfully increased by 36% to
CHF 141 million (2023: CHF 104 million), mainly
resulting from higher income from our treasury
management services. Management fee growth
was adversely impacted by a strengthening of
the CHF against the USD and EUR7, which
reduced growth by 2% in 2024 based on
average FX rates.
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%, amounting to 1.25% in 2024. This
confirms the value clients place in our solutions
and allows us to benefit from pricing stability. In
any given period, the management fee margin
can vary slightly depending on different factors
including the mix of assets raised across asset
classes as well as late management fees levied
or other operating income from our treasury
management services. The relatively higher
2024 performance fees brought the total
revenue margin to 1.64% (2023: 1.56%).
Revenues8
(in CHF million)
1'872
1'945
2'136
1'603
1'575
1'625
269
369
511
Management fees (incl. other revenues & other operating income)
Performance fees
2022
2023
2024
2024 at a glance - Financials
Annual Report 2024
23
7 Refers to average LTM FX rates.
8 Revenues include management fees, net, and performance fees, net. Management fees include other revenues, net, and other operating income. Due to rounding, numbers might not add up.
(14%)
-2%
(19%)
+3%
+10%
(81%)
(86%)
104
122
We expect
Management
fees in CHF to
grow in line
with the
average AuM
in CHF
+4%
141
(24%)
(76%)
Management fees derived from our three
key private markets 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, mandates for large
institutions, which enable us to guide multi-asset
class investment exposure aligned with long-
term client goals and investment horizons;
second, evergreen programs, which allow
investors immediate, comprehensive private
markets access from day one; and third, closed-
ended limited partnerships.
•
Mandates (39% of AuM) are long-term
significant relationships between Partners
Group and institutional investors. In these
relationships, Partners Group manages an
investment program tailored for the client's
specific needs. 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 (32% of AuM) cater
predominantly to wealth clients 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.9
•
Traditional programs (29% 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.
Revenue margin development10
1.29%
1.26%
1.25%
2022
2023
2024
Performance fees
Management fees
Performance fees remain highly
diversified
—
Performance fees represented 24% of total
revenues (2023: 19%), or CHF 511 million (2023:
CHF 369 million); with the second half of the
year accounting for 68% of the total. In H2, we
announced the sale of a number of assets which
bolstered performance fees. The four largest
exits announced were sold or listed at a >40%
uplift (capital-weighted) compared to their
valuation from six months prior11, testament to
the strength of our portfolio and the interest it
demands in the market.
Performance fees were driven by dozens of
underlying direct assets and hundreds of
portfolio assets across regions and sectors.
Overall, more than 90 investment programs and
mandates with portfolios diversified across
vintage years contributed to performance fees
in 2024.
2024 at a glance - Financials
Annual Report 2024
24
9 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.
10 Calculated as revenues divided by average assets under management, on a daily basis.
11 Includes the announced exits of VSB, Techem, Vishal Mega Mart, and KinderCare Learning Centers. VSB is expected to begin contributing to performance fees in the financial year 2025 and beyond. Vishal Mega Mart and KinderCare Learning Centers are expected to continue
generating performance fees in 2025 and beyond.
Of our 350+ programs,
over 90 contributed to
performance fees in
2024
350+
unique investment
programs
1.51%
1.56%
1.64%
Private equity performance fees
+87% driven by strong
realizations and value creation
Across our asset classes, private equity
contributed the largest amount of performance
fees, increasing 87% year-on-year. The
significant growth was primarily driven by our
direct portfolio. Our transformational investing
approach yielded strong results, enabling the
exit of several larger direct assets. Additionally,
our value creation efforts led to a meaningful
uplift of asset values in our evergreen programs
during the latter half of the year, further
contributing to the overall growth in
performance fees.
Performance fees from private credit increased
by 86% year-on-year. As credits in private
markets are almost exclusively floating rate, this
asset class continued to benefit from higher
base rates as well as increased refinancing
activity in 2024 which allowed us to realize value
for our clients. Evergreen programs drove the
majority of private credit performance fees
during the period. In the traditional fund
segment, a large direct credit exit propelled
several smaller funds past their hurdle rates in
the latter half of the year, enabling performance
fee recognition.
Infrastructure was the second largest
contributor to performance fees in 2024 despite
seeing a decrease of 26% versus 2023, a year
which benefited from catch-up effects.
Traditional programs along with select larger
mandates were the main contributors to 2024
infrastructure performance fees.
Real estate was the lowest contributor to
performance fees as the sector is going through
the most disruptive changes in decades driven
by structural changes impacting occupier
demand. The majority of the underlying
programs are not currently in performance fee
mode.
Performance fee development per asset class
in 2024 (in CHF million, year-on-year in %)12
335
49
120
7
Private equity Private credit Infrastructure
Real estate
Performance fees by strategy in 2024
Evergreen programs, which predominantly
recognize performance fees based on a High
Water Mark (HWM), accounted for 49% of total
performance fees. In an improving market,
HWM-based programs tend to generate
performance fees earlier than traditional
programs and mandates, as these fees are
typically calculated and, if above the HWM, paid
on a quarterly basis. As a result, the value
creation in the portfolios accelerated
performance in evergreen programs towards
the end of the year, leading to higher
performance fee payouts. Traditional programs
and mandates accounted for the remaining 51%
of performance fees.
Our approach in recognizing performance
fees
—
In closed-ended investment programs,
performance fees are typically charged only
once investments are realized and a pre-defined
return hurdle 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 net asset values ("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 as well
as open-ended evergreen solutions is explained
in detail on pages 32 to 34, as well as in note 1.1.
of the notes to the consolidated financial
statements.
2024 at a glance - Financials
Annual Report 2024
25
12 Compared to previous years, the firm refined the segment allocation of revenues related to its multi-segment investment programs, which is reflected in the variances.
+87%
+86%
+187%
-26%
Evergreens
49%
Mandates &
traditional
programs
51%
EBIT in line with revenues13,14
Management fees
1'625
+3%
1'575
Performance fees
511
+38%
369
Revenues
2'136
+10%
1'945
Total operating
costs, of which
(778)
+9%
(711)
Personnel
expenses
(658)
+9%
(603)
Management
fee-funded
(472)
0%
(470)
Performance
fee-funded
(186)
+40%
(133)
Other operating
expenses
(120)
+11%
(108)
EBITDA
1'357
+10%
1'234
EBITDA margin
63.6%
63.4%
Depreciation &
amortization
(49)
+18%
(41)
EBIT
1'309
+10%
1'193
EBIT margin
61.3%
61.3%
Average FTEs
1'820
(5%)
1'911
Period-end FTEs
1'775
(8%)
1'931
In millions
of Swiss francs
2024
2023
Total costs
—
In 2024, total operating costs15 increased by 9%
to CHF 778 million (2023: CHF 711 million). The
increase was mainly driven by higher variable
performance fee-funded personnel expenses.
Personnel expenses
—
Personnel expenses increased by 9%, in line
with revenues, and consist of both management
fee- and performance fee-funded expenses.
They represented 85% of total operating costs
and amounted to CHF 658 million (2023: CHF
603 million).
1. Management fee-funded personnel
expenses remained largely flat at CHF 472
million (2023: CHF 470 million). Over the
same time period, the average number of
FTEs decreased by 5% standing at 1'820
(2023: 1'911 average FTEs) as of 31 December
2024. After a period of decentralized hiring
and strong growth during COVID and into
2022, Partners Group launched a program to
bring effectiveness back to the organization.
This entailed, amongst other initiatives, a
focus on reducing process duplicates,
outsourcing activities to strategic partners
and a higher threshold on performance
management in 2023 which together resulted
in a reduced number of FTEs across our
platform in 2024.
2. Performance fee-funded personnel
expenses increased 40% to CHF 186 million,
in line with performance fee development of
+38%. Performance fees and performance
fee-funded 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.
EBITDA margin stands at 64%
—
EBITDA increased by 10%, in line with revenues,
amounting to CHF 1'357 million (2023: CHF 1'234
million) at an EBITDA margin of 63.6% (2023:
63.4%). As a global firm, fluctuations in the EUR
or USD against the CHF affect our revenues and
costs and, therefore, our total EBITDA margin.
This results from differences between the
currency mix of our revenues and costs.
Beginning in 2025, we will change our
profitability measure from EBIT margin to
EBITDA margin in our external communication.
Over the last three years, Partners Group’s
EBITDA margin has been stable at around 63%.
Our approach to cost management remains
unchanged and we will continue to apply an
operating margin of approximately 60% for
newly generated management fees (assuming
stable foreign exchange rates) and performance
fees.
The decision to modify our profitability measure
was primarily driven by our increased
engagement in M&A activities in a consolidating
industry. Acquisitions may lead to significant
amortization charges of newly recognized
intangible assets. This distorts the firm's EBIT
and EBIT margin which may no longer
accurately reflect the true operational strength
and profitability of the business. The same holds
true for depreciation driven by our significant
upfront office investments over the last five
years. Both items have no impact on the
operating cash flows.
Other operating expenses and
depreciation & amortization
—
Other operating expenses increased 11% and
amounted to CHF 120 million (2023: CHF 108
million), while management fees grew at 3%
during the period. The difference was mainly
attributable to costs related to growth initiatives.
Depreciation & amortization increased 18% to
CHF 49 million (2023: CHF 41 million) mainly
driven by an increase in depreciable assets
related to select larger office investments.
2024 at a glance - Financials
Annual Report 2024
26
13 Revenues include management fees and other revenues, net, performance fees, net, and other operating income. management fee-funded personnel expenses exclude performance fee-funded personnel expenses. Performance-fee related personnel expenses as defined in the key definitions and alternative performance metrics section of the Annual Report
2024 on page 35-37.
14 For full year 2024 onwards total operating cost excludes depreciation & amortization.
15 See footnote 13.
EBIT margin stable at 61%
—
EBIT increased by 10%, amounting to CHF 1'309
million (2023: CHF 1'193 million) at an EBIT
margin of 61.3% (2023: 61.3%).
EBITDA and EBIT margin development
EBIT margin development
EBITDA margin development
2019
2020
2021
2022
2023
2024
Currency split of management fees in 202416
EUR
44%
USD
45%
GBP
5%
Others
6%
Currency split of costs in 202417
USD
30%
CHF
41%
GBP
12%
SGD
8%
Others
5%
EUR
4%
Foreign exchange effects
—
In 2024, the appreciation of the CHF against
many other currencies negatively impacted the
firm's management fees. Today, 89% of Partners
Group's management fees are generated from
investment programs which are either
denominated in USD or EUR. The FX impact on
management fee growth amounted to -2% year-
on-year.
Average FX rates development
FX rates (average)
2024
2023
Delta
1 EUR CHF
0.953
0.971
-2%
1 USD CHF
0.881
0.899
-2%
1 GBP CHF
1.125
1.117
1%
1 SGD CHF
0.659
0.669
-2%
Total expenses, on the other hand, experienced
a moderate positive impact. Performance fee
revenues (24% of total revenues) and related
costs are largely margin neutral with regards to
FX movements. In aggregate, Partners Group's
like-for-like foreign exchange impact on its
EBITDA margin amounted to approximately -0.3
percentage points.
2024 at a glance - Financials
Annual Report 2024
27
16 Includes management fees and other revenues, net, and other operating income.
17 Includes management fee-funded personnel expenses (excluding performance fee-funded expenses), other operating expenses as well as depreciation and amortization.
63%
62%
65%
65%
63%
64%
60%
63%
61%
63%
61%
64%
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).
Strong value creation of investments
alongside clients drove financial result
—
The total financial result amounted to CHF
61 million (2023: CHF 16 million):
1. Portfolio performance: we saw an average
net investment result of 9% for the period, or
CHF 112 million (2023: CHF 67 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 an uplift across our investments
alongside our clients for the twelve-month
period ending on 31 December 2024. For
further information, see note 3.4. of the notes
to the consolidated financial statements.
2. Foreign exchange hedging and interest
expenses: the negative contribution of
CHF-51 million (2023: CHF -51 million) was
driven partly by foreign exchange effects,
hedging, and partly by interest results
stemming from additional bond issuances in
2023 and 2024 (see balance sheet section).
We use hedging to limit our P&L exposure to
different currencies for our treasury
management and short-term financing
services.
Taxes
—
The actual tax rate stood at 17.7% (2023: 17.0%)
resulting in corporate taxes of CHF 242 million
(2023: CHF 205 million). Our group corporate
tax rate derives from various tax rates across the
many jurisdictions worldwide where we have
active business operations.
In summary, the firm's profit increased 12% CHF
1'128 million (2023: CHF 1'003 million), slightly
above revenue development.
From EBITDA to profit
EBITDA
1'357
10%
1'234
Depreciation & amortization
(49)
18%
(41)
EBIT
1'309
10%
1'193
Total financial result, of which
61
16
Portfolio performance
112
67
Foreign exchange, hedging & interest expenses
(51)
(51)
Taxes
(242)
(205)
Tax rate
18%
17%
Profit
1'128
12%
1'003
In millions of Swiss francs
2024
2023
2024 at a glance - Financials
Annual Report 2024
28
Dividend payments
—
Since the IPO in 2006, 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. 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 42.00 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 42.00 per share18
(2023: CHF 39.00 per share) to its shareholders
at the Annual General Meeting on 21 May 2025.
This proposal represents a dividend increase of
8% and a payout ratio of 97% (2023: 101%), on a
diluted earnings per share basis.
2024 at a glance - Financials
Annual Report 2024
29
18 The Board of Directors proposes that a dividend of CHF 42.00 per share be paid for the financial year 2024, subject to the approval of the Annual General Meeting of shareholders to be held on 21 May 2025.
10.50
15.00
19.00
22.00
25.50
27.50
33.00
37.00
39.00
42.00
Dividend/share (in CHF)
Total AuM (in USD bn)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
152
Last 10-year dividend & AuM growth
50
Balance sheet
—
Our balance sheet remains strong. After a
dividend payment of CHF 1'018 million in May
2024, we have an available liquidity of CHF
2'720 million as of 31 December 2024 (31
December 2023: CHF 2'895 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
Cash & cash equivalents
289
Undrawn credit facilities
797
Cash liquidity
1'086
Short-term loans
1'634
Total available liquidity
2'720
In millions of Swiss francs
2024
As of 31 December 2024, the firm held a total of
CHF 289 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 2024, 800 short-term loans (31
December 2023: 735) were outstanding with an
average loan amount of CHF 2.0 million (31
December 2023: CHF 2.2 million), representing
a total of CHF 1'634 million (31 December 2023:
CHF 1'617 million). The duration of these loans
typically amounts to one to three 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. 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).
The firm maintains two unsecured, syndicated
credit facilities with Swiss and international
banks in addition to its bilateral credit facilities.
All credit facilities amounted to a total of CHF
1'512 million as of 31 December 2024 (31
December 2023: CHF 1'237 million). These
credit facilities can be used for general
corporate purposes with a primary focus on
working capital financing. Some of these
facilities are subject to covenants, particularly
regarding financial indebtedness, which were
met throughout both the current period and prior
year. As of 31 December 2024, CHF 715 million
were drawn from the credit facilities (31
December 2023: CHF 240 million).
As of 31 December 2024, we had CHF 1'330
million in corporate bonds outstanding (31
December 2023: CHF 1'130 million). The
proceeds of the bonds that we have issued
further strengthen the sustainability of our
operations in more challenging financial
markets.
Partners Group has five fixed-rate senior
unsecured CHF-denominated corporate bonds
outstanding.
Outstanding corporate bonds
Amount
Coupon
Issued
Maturity
ISIN
CHF 500 million
0.40%
June 2019
21 June 2027
CH0419041287
CHF 150 million
2.25%
September 2023
26 September 2028
CH1293714346
CHF 180 million
2.40%
September 2023
26 September 2033
CH1293714353
CHF 200 million
1.90%
June 2024
June 7, 2030
CH1346742930
CHF 300 million
2.15%
June 2024
June 7, 2034
CH1346742948
Continued balance-sheet light approach
—
As of 31 December 2024, the investments we
hold on our own balance sheet alongside clients
amounted to a total of CHF 1'459 million (31
December 2023: CHF 1'147 million). The firm's
balance sheet investments consist of three
components as shown further below: financial
investments/GP commitments, seed
investments, and investments in associates.
Financial investments/GP commitments (i.e. our
obligation to fund investments alongside clients)
typically represent about 1% of assets invested
in traditional investment programs and
mandates and have an aggregated net asset
value of CHF 926 million as of 31 December
2024 (31 December 2023: CHF 820 million).
Investments in associates amounted to CHF
25 million as of 31 December 2024 (31
December 2023: CHF 10 million), which mainly
represent a minority stake in Trinity Real Estate
Investments LLC, US, a property development
and asset management company.
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
balance sheet risk management framework. The
underlying assets of these investment programs
are typically private markets assets valued at the
net asset value; they amounted to (net) CHF
2024 at a glance - Financials
Annual Report 2024
30
508 million as of 31 December 2024 (31
December 2023: CHF 317 million). The increase
in seed financing during the year was primarily
driven by the launch of seven new evergreen
programs.
Investments alongside clients from balance
sheet19
In millions of Swiss francs
2024
Financial investments / GP commitment20
926
Investments in associates21
25
Seed investments22
508
Total investments alongside clients
1'459
In total, commitments by the firm's Board of
Directors and employees amounted to
approximately CHF 2.0 billion as of 31 December
2024 (31 December 2023: CHF 2.3 billion), of
which CHF 1.6 billion (2023: CHF 1.9 billion) is
committed to closed-ended programs and CHF
0.4 billion (2023: CHF 0.4 billion) to evergreen
programs.
Financial outlook
—
1. Management fees: we expect total new
client assets of USD 26 to 31 billion in 2025.
This includes a guidance of USD 22 to 27
billion in expected gross client demand from
the firm’s existing business activities and USD
4 billion of platform growth from the
acquisition of Empira Group.23 We base our
guidance on the large and visible pipeline of
fundraising opportunities across asset
classes and client segments. We expect tail-
down effects stemming from the more mature
closed-ended programs of USD -9 to -10
billion. 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.24 We expect that 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 2025 and 25-40% for the years thereafter.
We base this forward-looking expectation on
the increasing proportion of our maturing
portfolio that consists of direct investments,
which entail a higher performance fee than
primary and secondary investments.
3. EBITDA margin: Through 2024, we have
guided our operations towards a target EBIT
margin of approximately 60% for newly
generated management fees (assuming
stable foreign exchange rates) as well as for
performance fees. Beginning in 2025, we will
change our profitability measure from EBIT
margin to EBITDA margin in our external
communication. Over the last three years,
Partners Group’s EBITDA margin has been
stable at around 63%. Our approach to cost
management remains unchanged and we will
continue to apply an operating margin of
approximately 60% for newly generated
management fees (assuming stable foreign
exchange rates) and performance fees. The
decision to modify our profitability measure
was primarily driven by our increased
engagement in M&A activities in a
consolidating industry. Acquisitions may lead
to significant amortization charges of newly
recognized intangible assets. This distorts the
firm's EBIT and EBIT margin which may no
longer accurately reflect the true operational
strength and profitability of the business. The
same holds true for depreciation driven by our
significant upfront office investments over the
last five years. Both items have no impact on
the cash flows of the operating business.
Furthermore, EBITDA has emerged as the
European standard, with the majority of
private market managers now referring to it as
a key profitability measure. We believe that
this shift enhances comparability and
provides a more standardized measure of
financial performance across the sector.
4. Tax rate: the firm has applied the Pillar Two
Model Rules as of 2024. The impact is
reflected in the firm's effective tax rate and we
therefore expect that the Group's effective
tax rate will stabilize around 18% to 19%.
However, due to several ongoing geopolitical
discussions around this topic, a certain level of
uncertainty remains and therefore changes
may occur.
Partners Group office | London, UK
2024 at a glance - Financials
Annual Report 2024
31
19 As of 31 December 2024.
20 NAV excluding CHF 316 million (2023: CHF 321 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.
21 Investments in associates is described in note 4.2. of the notes to the 2024 consolidated financial statements.
22 Seed investments presented in the annual report as assets and liabilities held for sale in note 3.1.3. of the notes to the 2024 consolidated financial statements.
23 Empira Group is a vertically integrated real estate investment manager (www.empira-invest.com). Transaction closed in January 2025. No debt financing was applied and no new shares were issued.
24 Net AuM impact of performance effects and redemptions between 2019-2024 (in USD billion): +0.5 in 2019, +0.2 in 2020, +3.7 in 2021, -2.3 in 2022, -1.3 in 2023, and -2.5 in 2024.
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. In open-ended investment programs,
performance fees are typically charged on Net Asset Value (NAV) development above a High Water Mark
(HWM). As these programs are evergreen in nature, performance fee generation is typically not dependent on
individual exits but rather linked to value creation / positive performance. These structures generally pay
quarterly performance fees. The illustrative examples on the next pages show the performance fee model of a
typical limited partnership program and open-ended evergreen solution.
Illustrative example of performance fee recognition in a closed-ended program
This illustrative example 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. This
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 gray 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)) or a total of 80.
The timing and amount of performance fee payments depend 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
1 As of 31 December 2024, the applied discount was 50% (31 December 2023: 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.
2024 at a glance - Financials
Annual Report 2024
32
Initial client commitment
Hurdle rate (8% IRR on inv. capital)
Catch-up of 8
(20% of 40 = 8)
12
8
Total perf.
fees: 20
(20% above 100)
Total current value
(20% of 60 = 12)
Remaining NAV 60
6-9 years
Distributions
140
140
100
200
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.
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.
2024 at a glance - Financials
Annual Report 2024
33
20
6-9 years
(20% of 100)
0
8
Performance fee recognition (realized)
Description of performance fee recognition in an open-ended program
In an evergreen structure, the fee is calculated as a percentage of the program's profits in excess of the
accrued losses . The performance fee is typically calculated on a quarterly basis. The variables used to
determine the claim on performance fees are defined as follows:
Net Asset Value (NAV) development: this is the increase in the program's value over a period, including
changes in investment values, income, gains, losses, and expenses, but does not consider new assets
raised or assets redeemed by investors. A positive NAV development is considered to be a profit; a
negative NAV development is considered to be a loss and is accrued over time. NAV development is
calculated as:
NAV development = opening NAV - ending NAV
High Water Mark (HWM): this mark starts at zero. It increases by the amount of any losses the fund has each
quarter and decreases by the amount of any profits (but it can't go below zero).
The illustrative example on the right-hand side shows the performance fee mechanics of a typical evergreen
structure over three quarters with different performance scenarios, excluding management fees.25
Illustrative example: performance fee calculation
•
Step 2: opening net asset value is $1'000 + $60 of unrealized positive NAV development (profit) - $50 of
redemptions - $6 of performance fee = ending net asset value of $1'004.
Quarter 2: negative NAV development (HWM not exceeded)
Opening net asset value is $1'004 and HWM is at 0 as there are no accrued losses.
$31 of unrealized negative NAV development (loss)
$100 of subscriptions
•
Step 1: as there was a negative NAV development (loss) of $31 and there were no accrued losses and a
performance fee of $0 is generated.
•
Performance fee = 10% x (profits - accrued losses)
•
= 10% x ($0 - $31)
•
=$0 (No performance fee for the quarter)
•
Step 2: opening net asset value is $1'004 - $31 of unrealized negative NAV development (loss) + $100 of
subscriptions - $0 of performance fee = ending net asset value of $1'073.
Quarter 3: positive NAV development (HWM exceeded)
Opening net asset value is $1'073 and HWM is at $31 as there are no accrued losses.
$51 of unrealized positive NAV development (profit)
$0 subscriptions and redemptions
•
Step 1: as there was a positive NAV development (profit) of $51 and there were $31 accrued losses and a
performance fee of $2 is generated.
•
Performance fee = 10% x (profits - accrued losses)
•
= 10% x ($51 - $31)
•
=$2
•
Step 2: opening net asset value is $1'073 + $51 of unrealized negative NAV development (loss) - $2 of
performance fee = ending net asset value of $1'122.
Example: performance fee recognition over three quarters
This illustrative example demonstrates the calculation of performance fees over three quarters, highlighting
how unrealized performance impacts the fee calculations based on the change in net asset value over time. We
assume an opening net asset value of $1'000 in an evergreen structure. It is agreed that Partners Group shall
receive 10% of performance exceeding the accrued losses:
Quarter 1: positive NAV development (HWM exceeded)
Opening net asset value is $1'000 and HWM is at 0 as there are no accrued losses.
$60 of unrealized positive NAV development (profit)
$50 of redemptions
•
Step 1: as there was a positive performance (profit) of $60 and there were no accrued losses a
performance fee of $50 is generated.
•
Performance fee = 10% x (profits - accrued losses)
•
= 10% x ($60 - $0)
•
=$6
2024 at a glance - Financials
Annual Report 2024
34
25 Management fees contribute to net income (loss); therefore, the High Water Mark (HWM) reflects also management fees and is included in the performance fee calculation.
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)26
—
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.
Annual Report 2024
35
26 Due to rounding, numbers might not add up.
Key definitions
and alternative
performance
metrics (APM)
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.
EBITDA margin: is calculated as earnings
before interest, tax, depreciation, and
amortization (EBITDA) 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.
EBITDA
1'357
1'234
Revenues from
management services, net,
including other operating
income
2'136
1'945
EBITDA margin
63.6%
63.4%
In millions of Swiss francs
2024
2023
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.
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.
EBIT
1'309
1'193
Revenues from
management services, net,
including other operating
income
2'136
1'945
EBIT margin
61.3%
61.3%
In millions of Swiss francs
2024
2023
Equity ratio: is calculated as equity attributable
to owners of the firm, divided by total liabilities
and equity.
Key definitions and alternative performance metrics
Annual Report 2024
36
Partners Group campus | Denver, USA
Management Fee EBITDA: is calculated as
EBITDA (see EBITDA definition above) less
recognized performance fee revenues adding
back performance fee-funded expenses (see
Performance fee-funded expenses definition
below). Adjustments to the Management Fee
EBITDA calculation may occur should
accounting or other adjustments with an effect
on the financials make the comparison between
the start and end years inconsistent.
EBITDA
1'357
1'234
Performance fee revenues
(511)
(369)
Performance fee-funded
expenses
186
133
Management Fee EBITDA
1'033
998
In millions of Swiss francs
2024
2023
Management Fee EBIT: is calculated as EBIT
(see EBIT definition above) less recognized
performance fee revenues adding back
performance fee-funded expenses (see
performance fee-funded 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.
EBIT
1'309
1'193
Performance fee revenues
(511)
(369)
Performance fee-funded
expenses
186
133
Management Fee EBIT
985
956
In millions of Swiss francs
2024
2023
Performance fee-funded expenses: include
expenses for the firm's dedicated performance
fee-funded compensation program (the
Management Carry Program), performance fee-
funded bonus expenses, related social security
expenses, and social security expenses for the
Management Performance Plan.
Total net debt / (net cash): is calculated as
debt plus credit facilities drawn, minus cash and
cash equivalents as well as short-term loans.
Debt
1'330
1'130
Credit facilities drawn
715
240
Cash and cash equivalents
(289)
(281)
Short-term loans
(1'634)
(1'617)
Total net debt / (net cash)
122
(528)
In millions of Swiss francs
2024
2023
Revenue margin: is calculated as revenues
from management services, net, including other
operating income, divided by average AuM (in
CHF) calculated on a daily basis.
Revenues from
management services, net,
including other operating
income
2'136
1'945
Average AuM (in CHF bn)
calculated on a daily basis
130
125
Revenue margin
1.64%
1.56%
In millions of Swiss francs
2024
2023
Return on average shareholder's equity
(RoE): is calculated as profit for the period,
divided by average equity attributable to owners
of the firm.
Profit for the period
1'128
1'003
Average equity attributable
to owners of the firm
2'421
2'422
Return on equity
47%
41%
In millions of Swiss francs
2024
2023
Key definitions and alternative performance metrics
Annual Report 2024
37
39
Consolidated statement of profit or loss
40
Consolidated statement of comprehensive income
41
Consolidated statement of financial position
43
Consolidated statement of changes in equity
45
Consolidated statement of cash flows
47
Notes to the consolidated financial statements
102
Report of the auditors on the consolidated financial statements
Annual Report 2024
38
Consolidated
financial
statements
Management fees and other revenues, net
1.1.
1'507.8
1'487.2
Performance fees, net
1.1.
510.5
369.4
Revenues from management services, net
2'018.3
1'856.6
Other operating income
1.1.
117.3
87.9
Personnel expenses
2.1.
(658.4)
(603.3)
Other operating expenses
5.4.
(119.8)
(107.5)
EBITDA1
1'357.4
1'233.7
Depreciation and amortization
5.1. & 5.2.
(48.6)
(41.1)
EBIT1
1'308.8
1'192.6
Finance income
3.3.
120.9
72.4
Finance expense
3.3.
(59.8)
(56.4)
Profit before tax
1'369.9
1'208.6
Income tax expenses
5.5.1.
(242.2)
(205.2)
Profit for the period
1'127.7
1'003.4
Profit for the period attributable to owners of the
Company
1'127.7
1'003.4
Basic earnings per share (in Swiss francs)
1.3.
43.40
38.70
Diluted earnings per share (in Swiss francs)
1.3.
43.08
38.55
In millions of Swiss francs
Note
2024
2023
Annual Report 2024
39
1 For definitions refer to page 35-37 of the Annual Report 2024.
Consolidated
statement of
profit or loss
Profit for the period
1'127.7
1'003.4
Other comprehensive income
Exchange differences on translating foreign operations
80.3
(149.0)
Total other comprehensive income that may be
reclassified to the statement of profit or loss in
subsequent periods
80.3
(149.0)
Net actuarial gains/(losses) from defined benefit plans
3.3
14.5
Tax impact on net actuarial gains/losses from defined
benefit plans
5.5.2.
(0.4)
(1.7)
Actuarial gains/(losses) from defined benefit plans,
net of tax
2.9
12.8
Total other comprehensive income not being
reclassified to the statement of profit or loss in
subsequent periods, net of tax
2.9
12.8
Total other comprehensive income for the period, net
of tax
83.2
(136.2)
Total comprehensive income for the period, net of tax
1'210.9
867.2
Total comprehensive income attributable to owners of
the Company
1'210.9
867.2
In millions of Swiss francs
Note
2024
2023
Annual Report 2024
40
Consolidated
statement of
comprehensive
income
Assets
Cash and cash equivalents
3.5.1. (b)
288.9
281.0
Derivative assets
3.4. (a)
5.4
33.2
Trade and other receivables
3.1.1.
1'155.2
819.0
Short-term loans
3.5.1. (c)
1'634.2
1'617.4
Assets held for sale
3.1.3.
534.6
317.3
Total current assets
3'618.3
3'067.9
Property, equipment, and right-of-use assets
5.1.
533.1
436.9
Intangible assets and goodwill
5.2.
99.7
61.1
Investments in associates
4.2.
25.4
9.9
Financial investments
3.1.2.
925.9
820.1
Non-current accrued revenue
3.1.1.
384.2
283.4
Other financial assets
18.5
8.1
Employee benefit assets
2.3.
14.3
12.0
Deferred tax assets
5.5.2.
63.9
105.1
Total non-current assets
2'065.0
1'736.6
Total assets
5'683.3
4'804.5
In millions of Swiss francs as of 31 December
Note
2024
2023
Annual Report 2024
41
Consolidated
statement of
financial
position
Liabilities and equity
Liabilities
Trade and other payables
3.2.1.
405.9
289.1
Income tax liabilities
85.4
73.6
Provisions
0.5
4.1
Credit facilities drawn
3.5.3. (a)
715.0
240.0
Debt
3.2.2.
299.9
Employee benefit liabilities
2.3.
215.9
184.6
Liabilities held for sale
3.1.3.
26.6
0.7
Total current liabilities
1'449.3
1'092.0
Employee benefit liabilities
2.3.
286.8
292.9
Provisions
3.8
6.0
Deferred tax liabilities
5.5.2.
9.5
6.7
Debt
3.2.2.
1'329.6
830.1
Lease liabilities
5.3.
84.8
90.7
Other long-term liabilities
3.2.3.
105.4
59.2
Total non-current liabilities
1'819.9
1'285.6
Total liabilities
3'269.2
2'377.6
Equity
Share capital
4.3.
0.3
0.3
Treasury shares
(893.9)
(767.4)
Legal reserves
0.2
0.2
Other components of equity
3'307.5
3'193.8
Equity attributable to owners of the Company
2'414.1
2'426.9
Total liabilities and equity
5'683.3
4'804.5
In millions of Swiss francs as of 31 December
Note
2024
2023
Consolidated statement of financial position
Annual Report 2024
42
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
(767.4)
0.2
(423.7)
3'617.5
3'193.8
2'426.9
Transactions with owners of the
Company, recorded directly in
equity
Contributions by and
(distributions to) owners of the
Company
Purchase of treasury shares
(499.3)
(499.3)
Disposal of treasury shares
372.8
(136.3)
(136.3)
236.5
Share-based payment expenses
55.9
55.9
55.9
Tax effect on share-based
payment transactions
1.2
1.2
1.2
Dividends paid to owners of the
Company
(1'018.0)
(1'018.0)
(1'018.0)
Total contributions by and
(distributions to) owners of the
Company
—
(126.5)
—
—
(1'097.2)
(1'097.2)
(1'223.7)
Profit for the period
1'127.7
1'127.7
1'127.7
Total other comprehensive income
for the period, net of tax
80.3
2.9
83.2
83.2
Total comprehensive income for
the period, net of tax
—
—
—
80.3
1'130.6
1'210.9
1'210.9
Balance as of 31 December
0.3
(893.9)
0.2
(343.4)
3'650.9
3'307.5
2'414.1
In millions of Swiss francs
Equity attributable to owners of the Company
2024
Annual Report 2024
43
Consolidated
statement
of changes
in equity
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
(67.0)
(67.0)
Disposal of treasury shares
147.4
(68.9)
(68.9)
78.5
Share-based payment expenses
58.0
58.0
58.0
Tax effect on share-based
payment transactions
33.1
33.1
33.1
Dividends paid to owners of the
Company
(959.2)
(959.2)
(959.2)
Total contributions by and
(distributions to) owners of the
Company
—
80.4
—
—
(937.0)
(937.0)
(856.6)
Profit for the period
1'003.4
1'003.4
1'003.4
Total other comprehensive income
for the period, net of tax
(149.0)
12.8
(136.2)
(136.2)
Total comprehensive income for
the period, net of tax
—
—
—
(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
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
Consolidated statement of changes in equity
Annual Report 2024
44
Operating activities
Profit for the period
1'127.7
1'003.4
Adjustments
Share of results of associates
4.2.
(0.1)
0.1
Net finance (income) and expense
3.3.
(61.1)
(16.0)
Income tax expenses
5.5.1.
242.2
205.2
Depreciation and amortization
5.1. & 5.2.
48.6
41.1
Share-based payment expenses
2.2.
55.9
58.0
Change in provisions
(6.0)
(2.7)
Change in employee benefit assets/liabilities
2.9
(27.3)
Non-cash change in non-current accrued revenue
(91.1)
115.9
Non-cash change in other non-current liabilities
29.4
(1.3)
Cash generated from/(used in) operating activities
before changes in working capital
1'348.4
1'376.4
(Increase)/decrease in trade and other receivables and
short-term loans
(335.0)
(597.1)
Increase/(decrease) in trade and other payables
102.0
79.4
Cash generated from/(used in) operating activities
1'115.4
858.7
Income taxes paid
(181.5)
(215.6)
Net cash from/(used in) operating activities
933.9
643.1
In millions of Swiss francs
Note
2024
2023
Annual Report 2024
45
Consolidated
statement of
cash flows
Investing activities
Purchase of property and equipment
5.1.
(114.3)
(102.0)
Purchase of intangible assets
5.2.
(26.8)
(6.7)
Purchase of financial investments & assets and liabilities
held for sale
(388.7)
(429.1)
Proceeds on disposal of financial investments & assets
and liabilities held for sale
268.5
75.9
Purchase of investments in associates
4.2.
(12.9)
Proceeds on disposal of investments in associates
4.2.
4.3
1.9
Acquisition of business, net of cash acquired
4.5.
(13.9)
Purchase of other financial assets
(8.6)
(0.1)
Proceeds on disposal of other financial assets
5.0
4.3
Interest received2
3.3.
8.4
5.0
Net cash from/(used in) investing activities
(279.0)
(450.8)
Financing activities
Repayment of credit facilities
(1'545.0)
(1'534.0)
Drawdown from credit facilities
2'020.0
1'504.0
Repayment of debt
3.2.2.
(300.0)
Issuance of debt
3.2.2.
499.3
330.4
Payment of principal portion of lease liabilities
5.3.
(16.1)
(15.8)
Interest paid
(25.3)
(9.0)
Bank charges and other finance expenses paid
3.3.
(5.2)
(4.6)
Dividends paid to shareholders of the Company
4.3.
(1'018.0)
(959.2)
Purchase of treasury shares
(499.3)
(67.0)
Disposal of treasury shares
236.5
78.5
Net cash from/(used in) financing activities
(653.1)
(676.7)
In millions of Swiss francs
Note
2024
2023
Net increase/(decrease) in cash and cash equivalents
1.8
(484.4)
Cash and cash equivalents as of 1 January
281.0
779.5
Exchange differences on cash and cash equivalents
6.1
(14.1)
Cash and cash equivalents as of 31 December
288.9
281.0
In millions of Swiss francs
Note
2024
2023
Bank balances
288.9
281.0
Petty cash
0.0
0.0
Cash and cash equivalents
288.9
281.0
In millions of Swiss francs as of 31 December
2024
2023
Consolidated statement of cash flows
Annual Report 2024
46
2 Excludes CHF 103.5 million (2023: CHF 85.0 million) compensation from short-term loans (included in other operating income) that forms part of net cash flow from operating activities.
•
Structure of the notes to the consolidated financial statements
48
General information
50
1. Performance
50
1.1. Revenue and other operating income
53
1.2. Segment information
56
1.3. Earnings per share
57
2. People
57
2.1. Personnel expenses
57
2.2. Share-based incentive plans
62
2.3. Employee benefits - assets and liabilities
66
3. Financial instruments and financial risk management
66
3.1. Financial assets
69
3.2. Financial liabilities
71
3.3. Finance income and expenses
71
3.4. Fair value measurement
75
3.5. Financial risk management
85
4. Partners Group and related parties
85
4.1. Subsidiaries
88
4.2. Investments in associates
88
4.3. Equity
90
4.4. Related party transactions
92
4.5. Acquisitions
94
5. Other disclosures
94
5.1. Property, equipment, and right-of-use assets
96
5.2. Intangible assets and goodwill
98
5.3. Leases
99
5.4. Other operating expenses
99
5.5. Income taxes
101
5.6. Subsequent events
Annual Report 2024
47
Notes to the
consolidated
financial
statements
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
Unternehmer-Park 3, 6340 Baar-Zug, Switzerland.
The consolidated financial statements for the year ended 31 December 2024 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
7 March 2025 and are subject to approval at the Annual General Meeting of shareholders on 21 May
2025.
(b) Basis of preparation
—
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 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.
Compared to last year's consolidated financial statements 2023, some notes and disclosures have
been updated and improved. 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 2024 are consistent with those of
the previous financial year except for the following new standards, amendments and interpretations
that became effective for the Group for the first time for the financial year starting on 1 January 2024 but
they do not have a significant effect on the Group’s consolidated financial statements:
•
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)
Notes to the consolidated financial statements
Annual Report 2024
48
Standards, amendments, and interpretations to existing standards that are not yet effective and might
be relevant to the Group, but have not been early adopted
The following new and revised standards, amendments, and interpretations have been issued by the
date the consolidated financial statements were authorized for issue but are not yet effective and are
not adopted early in these consolidated financial statements. The expected impacts as disclosed in the
table below reflect a first assessment by the Group’s management.
New standards or interpretations
IFRS 18 Presentation and Disclosure in Financial Statements
**
1 January 2027
Reporting year
2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures
*
1 January 2027
Reporting year
2027
IFRS S1 General Requirements for Disclosure of Sustainability-related
Financial Information and IFRS S2 Climate-related Disclosures
subject to local regulation
Revisions and amendments of standards and interpretations
Lack of Exchangeability (Amendments to IAS 21)
*
1 January 2025
Reporting year
2025
Classification and Measurement of Financial Instruments (Amendments to
IFRS 9 and IFRS 7)
*
1 January 2026
Reporting year
2026
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture (Amendments to IFRS 10 and IAS 28)
*
Available for optional adoption /
effective date deferred indefinitely
Standard / Interpretation
Effective date
Planned adoption
by the Group
* 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.
** The Group is currently assessing the impact of the new standard, particularly with respect to the structure of the Group’s consolidated statement of profit or loss, the
consolidated statement of cash flows and the additional disclosures required for management-defined performance measures.
(d) Critical accounting estimates and judgments
—
In preparing these consolidated financial statements, management has made judgments 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.
The following key judgment in applying accounting policies has been identified which is explained in
more detail in the respective note:
Key judgment
Note
Control assessment and accounting for investment
programs
4.1. Subsidiaries
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
Notes
Revenue recognition
1.1. Revenue and other operating income
Determination of fair values
3.4. Fair value measurement
Other relevant areas with critical accounting estimates and judgments include goodwill impairment, loss
allowances on financial assets, actuarial assumptions regarding defined benefit plans (IAS 19), business
combinations, 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
Annual Report 2024
49
1. Performance
1.1. Revenue and other operating income
Management fees and other revenues
1'710.8
1'673.7
Revenue deductions related to management fees and
other revenues
(203.0)
(186.5)
Management fees and other revenues, net
1'507.8
1'487.2
Performance fees
548.6
409.8
Revenue deductions related to performance fees
(38.1)
(40.4)
Performance fees, net
510.5
369.4
Revenues from management services, net
2'018.3
1'856.6
Compensation from short-term loans
3.5.1. (c)
103.5
85.0
Share of results of associates
4.2.
0.1
(0.1)
Other income
13.7
3.0
Other operating income
117.3
87.9
Total revenues from management services, net and
other operating income
2'135.6
1'944.5
In millions of Swiss francs
Note
2024
2023
In 2024 there was one direct counterparty (2023: one) exceeding 10% of revenues from management
services, net, totaling CHF 278.7 million (2023: CHF 287.2 million) with an exposure across the
segments of private equity, private credit, and infrastructure (2023: private equity, private credit, and
infrastructure).
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 accounting policy below).
Accounting policy: Revenue recognition
Revenue comprises the amount of consideration to which the Group expects to be entitled in exchange for
transferring promised services to its customers, net of value-added tax and rebates and after eliminating intra-
group sales. 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
Annual Report 2024
50
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.
The performance obligation of the Group in respect
of management fees is to manage investment
structures on an ongoing basis. Ongoing investment
management fees are recognized over time, based
on the specific contracts.
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 investors are admitted to investment
programs.
Organizational fees are recognized at the point in
time when investors are admitted to the relevant
investment programs, as the structuring of the
investment programs represents a separate
performance obligation for the Group.
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 in respect
of transaction fees 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.
The performance obligation of the Group in respect
of fees to investments is to provide value-added
services. Revenue recognition occurs over the time
period these services are provided to investments.
Performance fees
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.
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.
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.
Other income
Other operating income comprises income resulting
from the ordinary course of business but that is not
revenue from management services. This includes
compensation from short-term loans and true-up
compensation on management fees and
organizational fees.
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.
Nature of the underlying service
Performance obligations and recognition
principles
Notes to the consolidated financial statements
Annual Report 2024
51
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.
(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 are no
performance fees. The lower of such calculated performance fees is recognized.
On a quarterly basis, the Write-Down Test is applied to all private markets investment programs with a claw-
back. The discount applied in the Write-Down Test may vary from investment program to investment program
and considers specific risk characteristics, including macroeconomic, (geo-) political, and investment program-
specific risk factors. The discount applied in the Write-Down Test is regularly assessed by the Group and
reviewed by the Board of Directors. As of 31 December 2024, the applied discount was 50% (31 December
2023: 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
Annual Report 2024
52
Partners Group office | London, UK
1.2. Segment information3
Management fees and other revenues
1'081.7
170.1
169.6
288.9
0.5
1'710.8
1'710.8
1'059.5
177.5
178.7
258.0
1'673.7
1'673.7
Revenue deductions related to management fees and
other revenues
(123.8)
(15.6)
(29.0)
(34.6)
(203.0)
(203.0)
(118.2)
(16.9)
(28.4)
(23.0)
(186.5)
(186.5)
Performance fees
346.7
50.6
6.8
144.2
0.3
548.6
548.6
184.2
26.7
2.4
196.5
409.8
409.8
Revenue deductions related to performance fees
(12.1)
(1.6)
(0.2)
(24.2)
(38.1)
(38.1)
(5.7)
(0.3)
(0.1)
(34.3)
(40.4)
(40.4)
Revenues from management services, net
1'292.5
203.5
147.2
374.3
0.8
2'018.3
—
2'018.3
1'119.8
187.0
152.6
397.2
—
1'856.6
—
1'856.6
Other operating income
50.4
4.2
34.9
16.4
0.1
106.0
11.3
117.3
41.3
3.7
25.5
16.0
86.5
1.4
87.9
Revenues and other operating income
1'342.9
207.7
182.1
390.7
0.9
2'124.3
11.3
2'135.6
1'161.1
190.7
178.1
413.2
—
1'943.1
1.4
1'944.5
Personnel expenses
(145.7)
(59.5)
(36.6)
(52.0)
(3.1)
(296.9)
(361.5)
(658.4)
(132.7)
(42.4)
(32.7)
(72.4)
(280.2)
(323.1)
(603.3)
Other operating expenses
(3.7)
(2.7)
(4.8)
(1.4)
(0.2)
(12.8)
(107.0)
(119.8)
(4.6)
(1.2)
(7.4)
(1.3)
(14.5)
(93.0)
(107.5)
Gross segment result before depreciation and
amortization
1'193.5
145.5
140.7
337.3
(2.4)
1'814.6
(457.2)
1'357.4
1'023.8
147.1
138.0
339.5
—
1'648.4
(414.7)
1'233.7
Depreciation and amortization
(48.6)
(48.6)
(41.1)
(41.1)
Gross segment result
1'193.5
145.5
140.7
337.3
(2.4)
1'814.6
(505.8)
1'308.8
1'023.8
147.1
138.0
339.5
—
1'648.4
(455.8)
1'192.6
Reconciliation to profit for the period
Net finance income
61.1
16.0
Income tax expenses
(242.2)
(205.2)
Profit for the period
1'127.7
1'003.4
In millions of Swiss francs
2024
2023
Operating segments
Operating segments
Private
equity
Private
credit
Real estate
Infra-
structure
Royalties
Total
reportable
segments
Unallocated
Total
Private
equity
Private
credit
Real estate
Infra-
structure
Royalties
Total
reportable
segments
Unallocated
Total
Notes to the consolidated financial statements
Annual Report 2024
53
3 The Group refined the segment allocation of revenues related to its multi-segment investment programs. Comparative amounts have been re-presented.
(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:
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.
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
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.
Royalties
Royalties refers to investments made in private markets royalties. A royalty is a contractual payment to
the owner of an asset by a third party for the right to the ongoing use of that asset. The asset owner
typically receives a percentage of the gross or net revenue generated from the asset in question. The
Group is leveraging its global platform to build a dedicated, scalable multi-sector royalty offering that
invests in both well-established royalty sectors, such as intellectual property assets across the
pharmaceuticals and entertainment industries, as well as emerging high-growth royalty sectors like
energy transition, sports, and brands.
(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
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
Notes to the consolidated financial statements
Annual Report 2024
54
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) and assets recognized in relation to business
combinations as detailed in note 5.2.
(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 as the Group’s main fund hubs.
Revenues were invoiced and collected in the following countries:
Guernsey
597.9
584.5
Luxembourg
771.4
684.5
US
413.0
388.8
Others
214.9
205.7
Revenues from management services, net
2'018.3
1'856.6
In millions of Swiss francs
2024
2023
Switzerland4
21.1
(6.9)
The 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.
For information about major customers see 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.
Notes to the consolidated financial statements
Annual Report 2024
55
4 Revenue deductions related to management fees, performance fees and other revenues are largely reimbursed by Swiss entities (2024: CHF 116.2 million; 2023: CHF 112.0 million).
1.3. Earnings per share
Average fair value of one ordinary share during the period
1'216.40
939.94
Weighted average exercise price for shares under option during the
period
953.41
752.05
In Swiss francs
2024
2023
Earnings per share
Note
2024
2023
Profit for the period attributable to owners of the
Company (in millions of Swiss francs)
1'127.7
1'003.4
Weighted average number of ordinary shares
outstanding (in number of shares)
4.3.
25'983'451
25'929'206
Basic earnings per share (in Swiss francs)
43.40
38.70
Effect of options on issue (in number of shares)
194'585
98'068
Weighted average number of ordinary shares (diluted, in
number of shares)
26'178'036
26'027'274
Diluted earnings per share (in Swiss francs)
43.08
38.55
As of 31 December 2024, the Group had 1'008'676 options and non-vested shares outstanding (2023:
1'133'230) (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 23'218 options in the 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 (2023: 280'858 options).
Notes to the consolidated financial statements
Annual Report 2024
56
Partners Group campus | Baar-Zug, Switzerland
2. People
2.1. Personnel expenses
Salaries and cash bonus
(386.8)
(372.8)
Share-based payment expenses
2.2.
(55.2)
(57.1)
Other long-term benefits (management carry plan)
(120.9)
(100.6)
Retirement schemes - defined contribution plans
(11.8)
(11.8)
Retirement schemes - defined benefit plans
2.3.2.
(8.7)
(6.7)
Other social security expenses
(46.0)
(30.1)
Other personnel expenses
(29.0)
(24.2)
Personnel expenses
(658.4)
(603.3)
In millions of Swiss francs
Note
2024
2023
The average number of employees in 2024 was 1'842 (2023: 1'931), which is equivalent to 1'820 average
full-time employees (2023: 1'911).
2.2. Share-based incentive plans
Share-based payment expenses resulted from allocations of shares and options granted in 2024,
as well as in previous periods:
In millions of Swiss francs
Note
2024
2023
Grants 2017 (options and non-vested shares)
(0.3)
Grants 2018 (options and non-vested shares)
(0.2)
(0.5)
Grants 2019 (options and non-vested shares)
(0.7)
(1.9)
Grants 2020 (options and non-vested shares)
(1.4)
(4.1)
Grants 2021 (non-vested shares)
(3.4)
(6.3)
Grants 2022 (non-vested shares)
(6.7)
(12.6)
Grants 2023 (options and non-vested shares)
(10.3)
(11.6)
Grants 2024 (options and non-vested shares)
2.2.2. & 2.2.3.
(12.3)
Entry shares
2.2.1.
(2.6)
(3.2)
Total expenses from options and non-vested shares
(37.6)
(40.5)
Grants 2018 (MPP)
(0.8)
Grants 2019 (MPP)
(0.3)
(0.8)
Grants 2020 (MPP)
(0.5)
(1.1)
Grants 2020 (MIP)
(0.4)
(0.4)
Grants 2021 (MPP)
(1.8)
(2.7)
Grants 2021 (MIP)
(0.7)
(0.8)
Grants 2022 (MPP)
(3.2)
(5.1)
Grants 2022 (MIP)
(0.9)
(1.1)
Grants 2023 (MPP)
(3.6)
(3.8)
Grants 2024 (MPP)
2.2.4.
(6.2)
Total expenses from participation rights
(17.6)
(16.6)
Total share-based payment expenses5
(55.2)
(57.1)
Notes to the consolidated financial statements
Annual Report 2024
57
5 Share-based payment expenses for non-executive members of the BoD of CHF 0.7 million (2023: CHF 0.9 million) are disclosed as a part of third-party services (see note 5.4.).
The number and weighted average exercise price of options and non-vested shares developed
as follows:
Outstanding options as of 1 January
916.71
1'051'285
862.46
990'389
Forfeited
1'090.67
(15'394)
1'002.93
(25'670)
Exercised
829.84
(284'991)
726.11
(108'017)
Granted
1'246.96
189'940
1'098.40
194'583
Outstanding options as of
31 December
1'006.85
940'840
916.71
1'051'285
Outstanding shares as of 1 January
81'945
111'481
Movements
(14'109)
(29'536)
Outstanding shares as of
31 December
67'836
81'945
Outstanding instruments as of
31 December
1'008'676
1'133'230
2024
2023
Weighted average
exercise price
(in CHF)
Number of
instruments
Weighted average
exercise price
(in CHF)
Number of
instruments
Of the outstanding 1'008'676 options and non-vested shares (31 December 2023: 1'133'230), 494'383
options were exercisable immediately (31 December 2023: 564'697). All other options and non-vested
shares are restricted until at least 26 October 2025.
The outstanding instruments are split by strike price and grant year as follows:
Options granted in 2014
324.00
2'086
Options granted in 2015
340.00
1'418
Options granted in 2015
450.00
4'000
Options granted in 2015
446.00
1'032
1'032
Options granted in 2016
682.00
55'500
110'250
Options granted in 2016
593.00
2'022
4'066
Options granted in 2017
805.00
121'834
230'950
Options granted in 2017
810.00
26'700
31'889
Options granted in 2018
975.00
96'800
160'517
Options granted in 2018
800.00
16'270
18'489
Options granted in 2019
965.00
137'775
178'150
Options granted in 2019
807.60
20'890
20'890
Options granted in 2020
1'045.00
90'135
92'965
Options granted in 2023
1'055.00
54'080
57'255
Options granted in 2023
1'116.50
127'862
137'328
Options granted in 2024
1'238.00
59'084
Options granted in 2024
1'251.00
130'856
Non-vested shares granted in the last five years
n/a
67'836
81'945
Total instruments outstanding
1'008'676
1'133'230
Numbers of instruments outstanding as of 31 December
2024
2023
Grant year
Strike price in CHF
Notes to the consolidated financial statements
Annual Report 2024
58
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 2024 and related assumptions were as follows:
Non-vested
options6,7
Non-vested
options7
Non-vested
options Vested shares
Non-vested
shares
Date of grant
25.09.2024
25.09.2024
26.11.2024
26.11.2024
26.11.2024
Fair value per option/share at measurement date
(in CHF)
171.29
149.65
1'251.00
1'251.00
Share price (in CHF)
1'238.00
1'251.00
1'251.00
1'251.00
Exercise price (in CHF)
1'238.00
1'251.00
Vesting conditions
5 years
cliff
6 years
cliff
5 years
linear
at grant
5 years
linear
Expected volatility
27.1%
25.7%
Expected term of execution
6 years
7 years
4.4 years
Expected dividend ratio
4.4%
4.4%
Risk-free interest rate (based on Swap rates)
0.5%
0.2%
Total options/shares granted
59'084
130'856
592
18'127
Total value granted in 2024 (in millions of CHF)
10.1
4.7
19.6
0.7
22.7
Amounts recognized in profit or loss (in
millions of CHF)
1.6
0.7
4.8
0.7
6.0
Total amount recognized in profit or loss (in millions of CHF)
13.8
- recognized in personnel expenses related to the grant 2024
12.3
- recognized in third party services related to the grant 2024
0.7
- recognized in personnel expenses related to the grant 2023
0.8
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:
2.2.1. Entry shares
In 2024, the Group granted 2'083 (2023: 3'926) shares, net of forfeitures, totaling CHF 2.6 million
(2023: CHF 3.2 million) to employees of the Group who 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.
2.2.2. Employee Participation Plan ("EPP")
The Employee Participation Plan ("EPP") aims to align employee interests with those of external
shareholders. The 2024 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.
The 2024 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.
2.2.3. Management Incentive Plan ("MIP")
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 35 of the Annual
Notes to the consolidated financial statements
Annual Report 2024
59
6 Under the 2023 MIP, the Group granted equity incentives equaling the initial fair value of CHF 10.6 million. The amount was allocated to the participants in two tranches in options, CHF 5.1 million in 2023 and CHF 5.4 million (net of forfeitures) in 2024. The 2024 allocation in the amount of CHF 5.4 million translates into 31'344 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 started recognizing expenses for both tranches beginning in 2023.
7 Under the 2024 MIP, the Group granted equity incentives equaling the fair value of CHF 9.5 million. The amount is allocated to the participants in two tranches, the first tranche in September 2024 in the amount of CHF 4.8 million. The 2024 allocation in the amount of CHF 4.8 million translates into 27'740 options. The second tranche in the amount of CHF 4.7
million will be allocated in fall 2025. 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 started recognizing expenses for both tranches beginning in 2024.
Report 2024. In 2023, the MIP plan was amended to a long-term option-only plan. Information on MIP
grants from prior years is presented in the Annual Report for the respective year.
For the year 2024, options were granted on 25 September 2024 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 35 of the Annual Report 2024. Information on MPP
grants from prior years is presented in the annual report for the respective year.
The intrinsic value of the 2024 MPP is determined by assessing the growth of the Management Fee
EBIT. Plan participants may choose to lock in the intrinsic value of their MPP rights in year five, six, or
seven. The 2024 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 2024, the Management Fee
EBIT payout restriction is assessed based on the Management Fee EBIT for 2029 if a plan participant
locks in the intrinsic value after the fifth year. When the Management Fee EBIT for 2029 is below
CHF 1'086.9 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 2029 is above CHF 1'735.0 million, equal to a
12% annual Management Fee EBIT growth rate (the cap-strike Management Fee EBIT), the intrinsic
value by default cannot exceed 6.0 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 2030 or 2031, respectively. The same floor and cap growth rates will apply if
the intrinsic value is locked in after the sixth or seventh year. This results in a floor-strike Management
Fee EBIT of CHF 1'108.7 million and CHF 1'130.8 million, respectively, and in a cap-strike Management
Fee EBIT of CHF 1'943.2 million and CHF 2'176.3 million respectively, for years 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 2024.
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
Annual Report 2024
60
Fair value of MPP granted in 2024 and related assumptions:
Date of allocation
March 2025
March 2025
Management Fee EBIT
984.5
984.5
Strike measured at year 5
1'086.9
1'735.0
Strike measured at year 6
1'108.7
1'943.2
Strike measured at year 7
1'130.8
2'176.3
Vesting conditions8
5 years
5 years
Expected volatility9
18.0%
18.0%
Expected term of execution
6 years
6 years
Expected dividend ratio
0.0%
0.0%
Risk-free interest rate (based on swap rates)
0.0%
0.0%
Total fair value of the 2024 participation right exercised year 5
107.5
In millions of Swiss francs
Short-Call
Long-Call
Grants in 2024 to
% of 2024
participation
right
Vesting conditions8
In millions of CHF
2024 MPP recipients
23.2%
5 years
25.0
MPP
6.2
Amounts recognized in profit or loss (in millions of CHF)
6.2
Amount recognized in profit or loss (in millions of CHF)
2024
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. There are no true-ups for
differences between expected and actual outcomes.
Notes to the consolidated financial statements
Annual Report 2024
61
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.
2.3. Employee benefits - assets and liabilities
Net defined benefit asset
14.3
12.0
Employee benefit assets
14.3
12.0
Net defined benefit liability
(0.6)
(0.8)
Accrued variable compensation (cash bonus)
(229.5)
(252.9)
Management carry plan
(252.6)
(203.4)
Other employee benefit liabilities
(20.0)
(20.4)
Employee benefit liabilities
(502.7)
(477.5)
Current liabilities
(215.9)
(184.6)
Non-current liabilities
(286.8)
(292.9)
Employee benefit liabilities
(502.7)
(477.5)
In millions of Swiss francs as of 31 December
2024
2023
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 2024, performance fees recognized in the consolidated statement of profit or loss amounted to
CHF 510.5 million (2023: CHF 369.4 million), of which CHF 127.9 million (2023: CHF 106.3 million) had
been pre-allocated via the MCP (including social security expenses) and CHF 18.0 million (2023:
CHF 14.6 million) via the MPP. In addition, CHF 1.6 million were accrued (2023: CHF 0.2 million were
released) for social security costs in relation to the MPP, and CHF 56.7 million (2023: CHF 27.1 million)
were allocated via the Performance Fee Bonus Pool. In 2024, the payout amounted to CHF 178.5 million
for these schemes (2023: CHF 72.4 million). Based on performance fees invoiced as of 31 December
2024, the Group expects a cash payout of CHF 117.2 million (2023: CHF 96.1 million) for these schemes
in the first half of 2025.
(a) Management Carry Plan ("MCP") allocation
—
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. 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. Payouts are made in cash. In 2024, the Group
reintroduced the MCP for Executive Team members. For further details regarding the MCP
compensation, refer to the compensation report in the Annual Report 2024.
(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 allocations, 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
Annual Report 2024
62
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 comprising 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 6.0-13.0% of the
covered salary in total for employers and employees (equal contributions). These ranges were identical
for all plans in place. Effective 1 January 2024, the employer contributions were increased to a range of
6.5-13.5% of the covered salary for the base pension plan. Employees were given the choice between
the previous savings contribution levels (3.0-6.5%) and the new employer contribution rates
(6.5-13.5%). For non-mandatory plans, a flat contribution of 5.0% for both the employer and employees
was introduced. Additionally, a coordination deduction was introduced. As a result of the plan
amendment, the Group's defined benefit obligation increased by CHF 2.5 million, which was recognized
as past service cost during 2023.
Pursuant to the LOB, additional employer and employee contributions may be imposed whenever a
significant funding deficit arises in accordance with the LOB. The Pension Fund is exposed to actuarial
risks, such as investment risk, longevity risk, disability risk, foreign currency risk, and interest rate risk.
In addition to the pension plan for Swiss employees, a defined benefit plan for Swiss management also
provides retirement benefits and risk insurance for death and disability for components of remuneration
in excess of the maximum insurable amount of salary under the plan described above.
The Group has additional immaterial post-employment benefit obligations arising from other defined
benefit plans. As of 31 December 2024, these amount to CHF 0.6 million (31 December 2023: CHF 0.8
million).
Development of defined benefit asset/(obligation)
—
Present value of benefit obligation as of 1 January
(110.2)
(92.8)
Included in profit or loss
Current service cost (employer)
(8.5)
(4.2)
Interest expense on benefit obligation
(1.7)
(2.1)
Past service cost, curtailments
0.1
Plan amendment
(2.5)
Included in other comprehensive income
Actuarial gains/(losses) on benefit obligation arising from:
- change in demographic assumptions
(0.1)
- change in financial assumptions
(7.8)
(6.7)
- experience gains/(losses)
(1.0)
(0.8)
Other
Employee contributions
(5.7)
(4.6)
Benefit payments
10.9
3.6
Present value of benefit obligation as of 31 December
(123.9)
(110.2)
In millions of Swiss francs
2024
2023
Notes to the consolidated financial statements
Annual Report 2024
63
Fair value of plan assets as of 1 January
121.4
108.9
Included in profit or loss
Interest income on plan assets
1.9
2.6
Administration cost
(0.2)
(0.1)
Included in other comprehensive income
Actuarial gain/(loss) on plan assets
12.1
4.4
Other
Employer contributions
7.6
4.6
Employee contributions
5.7
4.6
Benefit payments
(10.9)
(3.6)
Fair value of plan assets as of 31 December
137.6
121.4
Net defined benefit asset/(obligation) before asset ceiling as of 31
December
13.7
11.2
Impact of asset ceiling as of 1 January
(17.3)
Included in profit or loss
Interest income/(expense)
(0.4)
Included in other comprehensive income
Change in asset ceiling excluding amounts included in interest income/
(expense)
17.7
Impact of asset ceiling as of 31 December
—
—
Net defined benefit asset/(obligation) as of 31 December
13.7
11.2
In millions of Swiss francs
2024
2023
Asset allocation for the Swiss Pension Fund
—
Public debt
0.1%
0.2%
Public equity
34.1%
34.9%
Private markets
53.8%
51.3%
Semi-liquid
2.5%
Alternatives/other
3.7%
1.6%
Total
100.0%
100.0%
Asset allocation as of 31 December
2024
2023
Cash
8.3%
9.5%
Principal actuarial assumptions for the Swiss Pension Fund
—
The calculation of the net defined benefit asset/(obligation) included the following principal actuarial
assumptions:
Discount rate
0.9%
1.5%
Interest rate on retirement credits
1.3%
1.5%
Average future salary increases
2.0%
2.0%
Future pension increases
0.0%
0.0%
Mortality tables used
BVG 2020 (GT)
BVG 2020 (GT)
Mortality model used
BFS
BFS
Assumed average retirement age female
63
63
Assumed average retirement age male
63
63
Principal actuarial assumptions as of 31 December
2024
2023
Notes to the consolidated financial statements
Annual Report 2024
64
Weighted average duration of defined benefit obligation (years)
12.6
12.4
Assumed life expectancy at retirement age female
24.8
24.7
Assumed life expectancy at retirement age male
23.1
23.0
Principal actuarial assumptions as of 31 December
2024
2023
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:
Increase of discount rate (+0.5%)
7.4
0.7
Decrease of salary increase (-0.5%)
1.5
0.2
Increase of salary increase (+0.5%)
(1.6)
(0.2)
Shorter life expectancy (-1 year)
0.2
0.0
Longer life expectancy (+1 year)
(0.3)
(0.0)
In millions of Swiss francs
Impact on defined
benefit obligation
Impact on current
service cost
(employer)
Decrease of discount rate (-0.5%)
(8.6)
(0.8)
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 2025 are estimated to be CHF 6.4 million.
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.
Notes to the consolidated financial statements
Annual Report 2024
65
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:
Financial assets at amortized cost
Cash and cash equivalents
3.5.1. (b)
288.9
281.0
Fee receivables
3.1.1.
278.4
164.1
Other receivables
3.1.1.
49.3
66.8
Accrued revenue
3.1.1.
827.5
588.1
Short-term loans
3.5.1. (c)
1'634.2
1'617.4
Non-current accrued revenue
3.1.1.
384.2
283.4
Other financial assets
18.5
8.1
Total
3'481.0
3'008.9
Financial assets at fair value through profit or loss
Mandatorily measured at fair value through profit or loss
Derivative assets
5.4
33.2
Financial investments
3.1.2.
925.9
820.1
Assets held for sale
3.1.3.
534.6
317.3
Total
1'465.9
1'170.6
Total financial assets
4'946.9
4'179.5
In millions of Swiss francs as of 31 December
Note
2024
2023
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:
•
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. Compensation from short-term
loans is included in other operating income. Interest income from other 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.
Equity instruments are subsequently measured at fair value through profit or loss.
Notes to the consolidated financial statements
Annual Report 2024
66
3.1.1. Trade and other receivables and accrued revenue
Fee receivables
278.4
164.1
Other receivables
49.3
66.8
Accrued revenue
827.5
588.1
Trade and other receivables
1'155.2
819.0
Non-current accrued revenue
384.2
283.4
Total trade and other receivables and accrued revenue
1'539.4
1'102.4
In millions of Swiss francs as of 31 December
2024
2023
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.
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.
Movements in the Group's financial investments over the period were as follows:
Balance as of 1 January
820.1
766.5
Additions
127.3
108.2
Distributions/disposals
(146.7)
(64.6)
Transfers from assets and liabilities held for sale10
13.2
13.2
Change in fair value
73.8
58.2
Exchange differences
38.2
(61.4)
Balance as of end of period
925.9
820.1
In millions of Swiss francs
2024
2023
The Group's financial investments were split into the following operating segments:11
Private equity
449.4
393.0
Private credit
252.1
239.5
Real estate
79.3
71.0
Infrastructure
145.1
116.6
Financial investments
925.9
820.1
In millions of Swiss francs as of 31 December
2024
2023
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.
Notes to the consolidated financial statements
Annual Report 2024
67
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 68 for more details.
11 The Group refined the segment allocation of financial investments related to its multi-segment investment programs. Comparative amounts have been re-presented.
3.1.3. Assets and liabilities held for sale
The Group provides seed financing to certain early-stage investment programs that it manages. As of
31 December 2024, assets and liabilities of 13 (2023: six) 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
2024 comprised private equity, private credit, infrastructure, and royalties-related assets and liabilities
(2023: private equity, private credit, and infrastructure).
Assets held for sale
534.6
317.3
Liabilities held for sale
(26.6)
(0.7)
Assets and liabilities held for sale, net
508.0
316.6
In millions of Swiss francs as of 31 December
2024
2023
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"). 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. 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 the case of a subsequent remeasurement, the carrying
amounts of any assets and liabilities are remeasured in accordance with applicable IFRS Accounting
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.
Notes to the consolidated financial statements
Annual Report 2024
68
Partners Group campus | Denver, USA
3.2. Financial liabilities
As per reporting date, the Group’s financial liabilities were classified into the following categories:
Financial liabilities at amortized cost
Trade payables
3.2.1.
65.2
50.0
Goods and services received not yet invoiced
3.2.1.
90.8
38.2
Accrued revenue deductions
3.2.1.
181.4
121.8
Cash collateral for forward contracts
3.2.1.
41.2
Other payables
3.2.1.
43.1
16.5
Lease liabilities
5.3.
99.4
105.0
Credit facilities drawn
3.5.3.
715.0
240.0
Debt
3.2.2.
1'329.6
1'130.0
Other long-term liabilities
3.2.3.
105.1
59.0
Total
2'629.6
1'801.7
Financial liabilities at fair value through profit or loss
Mandatorily measured at fair value through profit or loss
Liabilities held for sale
3.1.3.
26.6
0.7
Derivative liabilities
3.2.1.
10.8
7.1
Other long-term liabilities
3.2.3.
0.3
0.2
Total
37.7
8.0
Total financial liabilities
2'667.3
1'809.7
In millions of Swiss francs as of 31 December
Note
2024
2023
Accounting policy: Financial liabilities
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. 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
Trade payables
65.2
50.0
Goods and services received not yet invoiced
90.8
38.2
Derivative liabilities
10.8
7.1
Accrued revenue deductions
181.4
121.8
Cash collateral for forward contracts
41.2
Lease liabilities
5.3.
14.6
14.3
Other payables
43.1
16.5
Trade and other payables
405.9
289.1
In millions of Swiss francs as of 31 December
Note
2024
2023
Notes to the consolidated financial statements
Annual Report 2024
69
3.2.2. Debt
In millions of Swiss francs
2024
2023
Balance as of 1 January
1'130.0
799.4
Issuance of debt
499.3
330.4
Repayment of debt
(300.0)
Accreted interest
0.3
0.2
Balance as of end of period
1'329.6
1'130.0
In millions of Swiss francs as of 31 December
2024
2023
Current debt
299.9
Non-current debt
1'329.6
830.1
Total debt
1'329.6
1'130.0
The Group issued the following outstanding corporate bonds denominated in Swiss francs and listed on
the SIX Swiss Exchange:
CH0419041287
21 June 2019
498.3
482.0
500.0
0.400%
2027 100.098% 100.000%
CH1293714346
26 September 2023
158.2
154.2
150.0
2.250%
2028 100.528% 100.000%
CH1293714353
26 September 2023
199.0
190.7
180.0
2.400%
2033 100.132% 100.000%
CH1346742930
7 June 2024
210.3
200.0
1.900%
2030 100.169% 100.000%
CH1346742948
7 June 2024
326.4
300.0
2.150%
2034 100.000% 100.000%
ISIN
Date of
issue
Fair value
31.12.2024
Fair value
31.12.2023
Face value in
millions of
CHF
Coupon
in %
Year of
maturity
Issue price
in %
Redemption
price in %
The Group repaid its corporate bond (ISIN CH0361532895) with an outstanding amount of CHF 300.0
million and a coupon of 0.15% at the due date of 7 June 2024. There was no gain or loss recorded on this
redemption.
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. Other long-term liabilities
In millions of Swiss francs as of 31 December
Note
2024
2023
Long-term accrued revenue deductions
(90.4)
(57.4)
Long-term deferred revenue
4.5.
(12.4)
Other non-current liabilities
(2.6)
(1.8)
Other long-term liabilities
(105.4)
(59.2)
3.2.4. Commitments
As of 31 December 2024, the Group had capital commitment contracts of CHF 1'310.9 million (2023:
CHF 1'083.1 million), of which CHF 316.0 million (2023: CHF 320.5 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. In 2024, the Group committed to granting a loan of CHF 250 million to a third party, contingent
upon the fulfillment of certain conditions that had not been met as of the reporting date.
Notes to the consolidated financial statements
Annual Report 2024
70
3.3. Finance income and expenses
Interest income calculated using the effective interest
rate method
8.4
5.0
Net gains on fair value through profit or loss instruments
3.4.
112.5
67.4
Finance income
120.9
72.4
Interest expense calculated using the effective interest
rate method
(28.0)
(12.9)
Share of results of associates (Pearl)
4.2.
(0.7)
(0.9)
Bank charges and other finance expenses
(5.2)
(4.6)
Net foreign exchange losses
(25.9)
(38.0)
Finance expense
(59.8)
(56.4)
Total net finance income and (expense)
61.1
16.0
In millions of Swiss francs
Note
2024
2023
3.4. Fair value measurement
(a) Overview
—
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 at that date. The fair value of
a liability reflects its non-performance risk.
The Group measures fair values using the following fair value hierarchy, 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:
Derivative assets
5.4
5.4
Assets held for sale
534.6
534.6
Financial investments
0.0
925.9
925.9
Total
0.0
5.4
1'460.5
1'465.9
Derivative liabilities12
10.8
10.8
Liabilities held for sale
26.6
26.6
Other long-term liabilities
0.3
0.3
Total
—
10.8
26.9
37.7
In millions of Swiss francs as of 31 December
2024
Level 1
Level 2
Level 3
Total
Notes to the consolidated financial statements
Annual Report 2024
71
12 Presented in the line item trade and other payables in the consolidated statement of financial position.
Derivative assets
33.2
33.2
Assets held for sale
317.3
317.3
Financial investments
0.0
820.1
820.1
Total
0.0
33.2
1'137.4
1'170.6
Derivative liabilities13
7.1
7.1
Liabilities held for sale
0.7
0.7
Other long-term liabilities
0.2
0.2
Total
—
7.1
0.9
8.0
In millions of Swiss francs as of 31 December
2023
Level 1
Level 2
Level 3
Total
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.
The following tables show the reconciliation of all level 3 financial instruments in 2024 and 2023:
Balance as of 1 January
1'137.4
0.9
Additions
447.7
59.0
Distributions/disposals
(302.2)
(33.7)
Changes in fair value14
112.5
0.0
Exchange differences
65.1
0.7
Balance as of 31 December
1'460.5
26.9
In millions of Swiss francs
2024
Financial assets
Financial liabilities
Balance as of 1 January
871.0
73.3
Additions
429.1
0.0
Distributions/disposals
(146.0)
(70.1)
Changes in fair value14
67.4
0.0
Exchange differences
(84.1)
(2.3)
Balance as of 31 December
1'137.4
0.9
In millions of Swiss francs
2023
Financial assets
Financial liabilities
Change in fair value included unrealized gains of CHF 59.6 million (31 December 2023: unrealized gains
of CHF 4.0 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.
Notes to the consolidated financial statements
Annual Report 2024
72
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.
(b) Financial investments and assets and liabilities held for sale
—
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, is 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.
(c) Valuation techniques used to determine fair values of underlying investments
—
Financial investments held by the Group consist of underlying assets and liabilities within investment
programs. In turn, these investment programs are invested in direct and indirect equity and debt
instruments. The following valuation techniques are applied 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
Annual Report 2024
73
Income approach
Within the income approach, primarily the discounted cash flow method and the capitalization model
are applied. 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 during the ongoing 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, market-observable assumptions and inputs are applied in the valuation techniques for
indirect investments of investment programs managed by the Group. 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,
unobservable inputs are selected for use in valuation techniques based on a combination of historical
experience, derivation of input levels from similar investment programs with observable price levels, and
knowledge of current market conditions and valuation approaches.
Within valuation techniques, different unobservable input factors are typically used. Significant
unobservable inputs include EV/EBITDA multiples, discount rates, capitalization rates, price/book
ratios, price/earnings ratios, and EV/sales multiples. Original transaction prices, recent transactions in
the same or similar instruments, and completed third-party transactions in comparable instruments are
also considered, and the model is adjusted as deemed necessary. Further inputs consist of external
valuation appraisals and third-party quotes. A significant portion of the investment programs’ direct
equity investments are measured using EV/EBITDA multiples, which show wide ranges.
The value of level 3 direct investments valued by using unobservable input factors is 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 millions of Swiss francs as of 31 December
2024
2023
Adjusted net asset value (1% increase)
14.3
11.4
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
Annual Report 2024
74
Critical accounting estimate: Determination of fair values
A significant portion of the Group’s assets and, to a lesser extent, liabilities is 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 investments in the areas of private equity,
private credit, real estate, infrastructure and royalties, 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 mainly comprise 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 judgment 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
Annual Report 2024
75
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, diversifies its banking counterparties, 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 2024 is composed of more than
350 customers (31 December 2023: more than 350) of which the largest represents less than 10% (31
December 2023: less than 10%). The historic default rate over the past 5 years has been consistently at
0.0% (2023: 0.0%) on the annual revenues. No material receivables overdue as of the reporting date
were still open as of the publication of this report (31 December 2023: 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 2024, the Group recorded CHF 0.4 million in expenses for
such write-offs and reversals (2023: CHF 0.1 million). Based on its assessment as of 31 December 2024,
the Group’s expected credit losses are immaterial (31 December 2023: immaterial). Therefore, the
Group has not recognized an allowance as of 31 December 2024 (31 December 2023: none
recognized).
(b) Cash and cash equivalents
—
Cash and cash equivalents include cash on hand, call deposits, and positions in money market funds
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 30
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
Annual Report 2024
76
On that basis, the expected credit loss on cash and cash equivalents as at 31 December 2024 was
determined as follows:
Scale 10-6: Low risk
A
288.9
100.0%
0.0%
0.0
Scale 5-3: Fair risk
B
Scale 2-1: Doubtful
C
Scale 0: Loss
D
Total
288.9
100.0%
0.0
In millions of Swiss francs as of 31 December
2024
Company internal proprietary risk scoring15
Link to
international
credit
ratings16
Gross
carrying
amount
% Gross
carrying
amount
Weighted
average
expected
credit loss
rate
Expected
credit loss
Scale 10-6: Low risk
A
281.0
100.0%
0.0%
0.0
Scale 5-3: Fair risk
B
Scale 2-1: Doubtful
C
Scale 0: Loss
D
Total
281.0
100.0%
0.0
In millions of Swiss francs as of 31 December
2023
Company internal proprietary risk scoring15
Link to
international
credit
ratings16
Gross
carrying
amount
% Gross
carrying
amount
Weighted
average
expected
credit loss
rate
Expected
credit loss
Cash and cash equivalents amounted to CHF 288.9 million as of 31 December 2024 (31 December
2023: CHF 281.0 million). The risk-weighted average rating of the overall cash portfolio was "low risk" as
of 31 December 2024 (31 December 2023: "low risk"). The largest bank exposure represents 16% of
cash and cash equivalents, with a rating of 9 (equivalent to A-1 as per Standard & Poor's) as of 31
December 2024 (31 December 2023: 47% 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 2024, the Group has not identified
any material expected credit losses (31 December 2023: not material) and has not recognized an
allowance (31 December 2023: none recognized).
(c) Loans
—
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 to
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.
Notes to the consolidated financial statements
Annual Report 2024
77
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).
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.
NAV loans
Low
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) typically remains
within 30% of the NAV.
Pre-financing
loans
Fair
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.
Risk weight per loan
Loan type
Risk weight
Characteristics
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 2024 and 2023:
Bridging loans
Low
1'585.6
1.3
Credit facility loans
Low
4.7
0.0
NAV loans
Low
42.2
0.5
Pre-financing loans
Fair
1.7
0.1
Total
1'634.2
—
—
1.9
In millions of Swiss francs as of 31 December
2024
Loan types
Internal risk weight
Nominal carrying
amounts Stage 1
Nominal carrying
amounts Stage 2
Nominal carrying
amounts Stage 3
Expected credit
loss 17
Bridging loans
Low
1'598.6
1.7
NAV loans
Low
11.5
0.0
Pre-financing loans
Fair
7.3
0.2
Total
1'617.4
—
—
1.9
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
As of 31 December 2024, the number of outstanding short-term loans was 800 (31 December 2023:
735) and the average amount per outstanding loan was CHF 2.0 million (2023: CHF 2.2 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 10% (31 December 2023: not more than 11%) of
the overall loan portfolio. In 2024, the Group received arm’s length compensation on short-term loans of
CHF 103.5 million (2023: CHF 85.0 million) for the granting of short-term loans as part of its
maintenance of investment programs, and hence as part of its operating activities.
Notes to the consolidated financial statements
Annual Report 2024
78
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.
Based on its assessment as of 31 December 2024, the Group has not identified any material expected
credit losses in relation to its short-term loans and has not recognized any allowance for credit losses
(31 December 2023: 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 US
dollars (USD), Euros (EUR), British pounds (GBP), and Singapore dollars (SGD). Under its hedging and
exposure policy framework related to foreign currency risk, the Group economically hedges the risk
with the objective of limiting the volatility of Swiss francs against other denominated transactional
currencies. In addition, the Group’s risk management framework entails a maximum foreign exchange
exposure limit on the Group’s equity. In line with this framework, the Group partly hedges its foreign
currency exposures related to loans to its products and, since 2023, hedges its employee benefit
liabilities denominated in a currency other than the functional currency. Since 2024, a tail risk foreign
exchange hedge limits the maximum possible loss to equity. 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
Closing rate
% change against
2023
Average rate
% change against
2023
USD
0.9060
+7.7%
0.8806
-2.0%
EUR
0.9382
+0.9%
0.9525
-1.9%
GBP
1.1347
+5.8%
1.1251
+0.7%
SGD
0.6642
+4.1%
0.6589
-1.5%
2024
2023
Currency
Closing rate
% change against
2022
Average rate
% change against
2022
USD
0.8415
-9.1 %
0.8985
-5.9 %
EUR
0.9297
-5.8 %
0.9714
-3.3 %
GBP
1.0723
-3.7 %
1.1169
-5.3 %
SGD
0.6379
-7.5 %
0.6691
-3.4 %
Notes to the consolidated financial statements
Annual Report 2024
79
Sensitivity
The Group’s foreign currency exposure at the end of the reporting period on the unhedged positions,
expressed in CHF, was as follows:
Cash and cash equivalents
17.1
6.6
5.1
0.7
5.1
3.9
4.0
3.4
0.3
1.7
Trade and other
receivables
309.6
129.6
45.1
2.5
19.5
172.7
88.0
19.9
1.1
10.6
Non-current accrued
revenue
18.0
58.3
7.8
15.7
30.2
3.5
Other financial assets
7.6
0.8
0.0
Trade and other payables
(53.7)
(79.9)
(9.8)
(0.1)
(10.3)
(25.9)
(56.0)
(5.4)
(0.1)
(8.8)
Other long-term liabilities
(13.7)
(32.0)
(2.8)
(11.6)
(19.6)
(0.2)
Net intercompany
positions
156.6
228.8
(93.2)
(111.6)
(36.5)
100.8
36.1
(100.7)
(117.4)
(23.2)
Net exposure
433.9
319.0
(47.8) (108.5)
(22.2)
255.6
83.5
(79.5)
(116.1)
(19.7)
Sensitivity on net exposure
USD
CHF
EUR
CHF
GBP
CHF
SGD
CHF
Others
CHF
USD
CHF
EUR
CHF
GBP
CHF
SGD
CHF
Others
CHF
5% appreciation to CHF18
21.7
16.0
(2.4)
(5.4)
(1.1)
12.8
4.2
(4.0)
(5.8)
(1.0)
Impact on profit before
tax
21.7
16.0
(2.4)
(5.4)
(1.1)
12.8
4.2
(4.0)
(5.8)
(1.0)
In millions of Swiss francs
as of 31 December
2024
2023
Foreign currency exposure
USD
CHF
EUR
CHF
GBP
CHF
SGD
CHF
Others
CHF
USD
CHF
EUR
CHF
GBP
CHF
SGD
CHF
Others
CHF
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 assets 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 on the date the fair value is determined.
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.
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
Annual Report 2024
80
18 Other assumptions remain unchanged and a depreciation to CHF of 5% would have the converse effect.
(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 loans typically granted
to investment programs, its cash and cash equivalents held at banks, and its short-term borrowings
under its credit facilities. Due to the short-term nature of most 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:
Variable rate instruments
Financial assets
Cash and cash equivalents
288.9
281.0
Short-term loans
1'633.9
1'617.3
Long-term loans
10.3
Total
1'933.1
1'898.3
Financial liabilities
Cash collateral for forward contracts
(41.2)
Credit facilities drawn
(715.0)
(240.0)
Total
(715.0)
(281.2)
Total variable rate instruments
1'218.1
1'617.1
In millions of Swiss francs
2024
2023
Fixed rate instruments
Financial assets
Short-term loans
0.3
0.1
Long-term loans
0.1
2.1
Other
8.1
6.0
Total
8.5
8.2
Financial liabilities
Lease liabilities
(99.4)
(105.0)
Debt
(1'329.6)
(1'130.0)
Total
(1'429.0)
(1'235.0)
Total fixed rate instruments
(1'420.5)
(1'226.8)
In millions of Swiss francs
2024
2023
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.
100bp increase
100bp decrease
100bp increase
100bp decrease
Impact on profit before tax
12.2
(12.2)
16.2
(16.2)
In millions of Swiss francs
2024
2023
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.
Notes to the consolidated financial statements
Annual Report 2024
81
(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.
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, infrastructure, or royalty 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.
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
2024
2023
Carrying amount
Volatility
Carrying amount
Volatility
Financial investments19
Private equity
449.4
18.0%
393.0
18.0%
Private credit
252.10
8.0%
239.5
8.0%
Real estate
79.3
15.0%
71.0
15.0%
Infrastructure
145.10
12.0%
116.6
12.0%
Assets and liabilities held for sale
Assets and liabilities held for sale
508.0
14.8%
316.6
15.0%
Total
1'433.9
1'136.7
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:
In millions of Swiss francs
2024
2023
Financial investments19
Private equity
80.9
70.7
Private credit
20.2
19.2
Real estate
11.9
10.7
Infrastructure
17.4
14.0
Assets and liabilities held for sale
Assets and liabilities held for sale
75.2
47.5
Impact on profit before tax
205.6
162.1
Notes to the consolidated financial statements
Annual Report 2024
82
19 The Group refined the segment allocation of financial investments related to its multi-segment investment programs. Comparative amounts have been re-presented.
3.5.3. Liquidity risk
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
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 30 days.
(a) Financing arrangements
—
The Group maintains the following lines of credit:
As per reporting date, the Group maintains two unsecured syndicated credit facilities of CHF 562
million (31 December 2023: CHF 622 million) and CHF 585 million (31 December 2023: 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 covenants, particularly regarding financial indebtedness, which have
been met throughout the current and prior year.
Additionally, the Group has bilateral credit facilities amounting to a total of CHF 365 million that can be
used for current account overdrafts or for fixed advances with a maturity of up to six months (31
December 2023: CHF 30 million). Interest is set at a margin above prevailing short-term market rates.
Some of these facilities are subject to covenants, particularly regarding financial indebtedness, which
have been fulfilled during both the current year and the previous year.
As of 31 December 2024, CHF 715 million of these facilities were drawn (31 December 2023: CHF 240
million).
Notes to the consolidated financial statements
Annual Report 2024
83
(b) Maturity of financial liabilities and commitments
—
The following table discloses the financial liabilities and commitments with their contractual maturities:
Trade payables20
3.2.1.
65.2
65.2
65.2
50.0
50.0
50.0
Goods and services received not yet invoiced20
3.2.1.
90.8
90.8
77.9
12.9
38.2
38.2
35.8
2.4
Derivative liabilities20
3.2.1.
10.8
10.8
10.8
7.1
7.1
7.1
Accrued revenue deductions20
3.2.1.
181.4
181.4
159.3
22.1
121.8
121.8
110.7
11.1
Cash collateral for forward contracts20
3.2.1.
41.2
41.2
41.2
Lease liabilities
5.3.
99.4
116.1
9.5
8.2
15.8
37.6
45.0
105.0
121.6
7.6
7.3
15.8
40.6
50.3
Other payables20
3.2.1.
43.1
43.1
38.6
4.5
16.5
16.5
16.5
Credit facilities drawn
3.5.3. (a)
715.0
715.0
715.0
240.0
240.0
240.0
Debt
3.2.2.
1'329.6
1'476.6
12.4
7.7
20.1
702.8
733.6
1'130.0
1'199.1
302.6
7.7
9.8
677.3
201.7
Other long-term liabilities21
3.2.3.
105.4
105.4
66.3
0.9
38.2
59.2
59.2
1.6
36.5
21.1
Commitments
3.2.4.
566.0
566.0
320.5
320.5
Total
2'640.7
3'370.4
1'654.7
55.4
102.2
741.3
816.8
1'809.0
2'215.2
1'132.0
28.5
27.2
754.4
273.1
In millions of Swiss francs as of 31 December
2024
2023
Note
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
Notes to the consolidated financial statements
Annual Report 2024
84
20 Presented in the line item trade and other payables in the consolidated statement of financial position.
21 This line item includes long-term accrued liabilities related to the investment programs and other third parties.
4. Partners Group and related parties
4.1. Subsidiaries
4.1.1. Changes in scope of consolidation
The Group added the following entities to its scope of consolidation:
Partners Group Middle East Limited
6 November 2024
Operating company
Partners Group IBCP US Mgmt GP, LLC
1 August 2024
Special purpose vehicle
Partners Group Royalties Management S.à r.l.22
1 July 2024
Investment manager
Partners Group Operator Sub-Holdings (Luxembourg) S.à r.l.23
12 April 2024
Special purpose vehicle
PG Trinity Holding LLC
9 April 2024
Special purpose vehicle
Partners Group US Operator Investment Holdings LLC
5 April 2024
Investment administrator
Partners Group Cayman Management VI Limited
11 March 2024
Investment manager
Partners Group Finance IBCP (USD), LLC
16 January 2024
Special purpose vehicle
Partners Group Finance IBCP (EUR) L.P. Inc.24
21 December 2023
Special limited partner
Partners Group Finance SLP (USD), LLC
26 October 2023
Special limited partner
Partners Group (Hong Kong) Private Limited
17 October 2023
Investment manager
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
Partners Group Cayman Management V Limited
25 August 2023
Investment manager
Partners Group Cayman Client Access Management I Limited
10 August 2023
Investment manager
Name
Date
Principal activity
Planeta Industries S.A. Compartment PGGLF II
5 May 2023
Financing/treasury
Partners Group Finance (USD) AG25
1 February 2023
Treasury service provider
Partners Group Operator Investments Holding AG
10 January 2023
Investment administrator
Name
Date
Principal activity
4.1.2. Subsidiaries
Details of the Group's operating subsidiaries as of the reporting date are set out below:
Partners Group AG
Baar-Zug
Switzerland
CHF 200
100%
100 %
Partners Group Advisors
(DIFC) Limited
Dubai
UAE
USD 300
100%
100 %
Partners Group Japan
Kabushiki Kaisha
Tokyo
Japan
JPY 10'000
100%
100 %
Partners Group Middle East
Limited
Abu Dhabi
UAE
USD 10
100%
Partners Group Private
Markets (Australia) Pty Ltd
Sydney
Australia
AUD 200
100%
100 %
Partners Group Prime Services
Solutions (Philippines), Inc.
Taguig City,
Metro Manila
Philippines
PHP 13'734
100%
100 %
Place of incorporation and operation
Name of the subsidiary
Registered
office
Country of
incorporation
Share Capital in
thousands
Interest %
Interest %
31 December
2024
31 December
2024
31 December
2023
Notes to the consolidated financial statements
Annual Report 2024
85
22 The company has been renamed from EGW Management Lux S.à r.l. to Partners Group Royalties Management S.à r.l. as of 18 December 2024.
23 The company has been renamed from PG Investment Company 70 S.à r.l. to Partners Group Operator Sub-Holdings (Luxembourg) S.à r.l. as of 13 August 2024.
24 The company has been renamed from Partners Group Finance SLP (EUR) L.P. Inc. to Partners Group Finance IBCP (EUR) L.P. Inc. as of 31 January 2024.
25 The company has been renamed from Partners Group Treasury AG to Partners Group Finance (USD) AG as of 9 January 2024.
Partners Group (Brazil)
Investimentos Ltda.
São Paulo
Brazil
BRL 795
100%
100 %
Partners Group (Canada) Inc.
Halifax
Canada
CAD 0
100%
100 %
Partners Group (EU) GmbH
Munich
Germany
EUR 32
100%
100 %
Partners Group (Guernsey)
Limited
St Peter Port
Guernsey
GBP 31'500
100%
100 %
Partners Group (Hong Kong)
Private Limited
Hong Kong
Hong Kong
HKD 7'000
100%
100 %
Partners Group (India) Private
Limited
Mumbai
India
INR 29'615
100%
100 %
Partners Group (Luxembourg)
S.A.
Luxembourg
Luxembourg
EUR 1'350
100%
100 %
Partners Group (Shanghai) Co.,
Ltd.
Shanghai
China
CNY 12'363
100%
100 %
Partners Group (Singapore)
Pte. Ltd.
Singapore
Singapore
SGD 1'250
100%
100 %
Partners Group (UK) Limited
London
UK
GBP 35'569
100%
100 %
Partners Group (USA) Inc.
Delaware
USA
USD 75
100%
100 %
Place of incorporation and operation
Name of the subsidiary
Registered
office
Country of
incorporation
Share Capital in
thousands
Interest %
Interest %
31 December
2024
31 December
2024
31 December
2023
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:
Financing/treasury
Switzerland
2
2
Holding of land and property
Switzerland
1
1
Investment administrator
Switzerland
1
1
General partner to investment programs
Guernsey
18
18
General partner to investment programs
Scotland
3
3
General partner to investment programs
Germany
1
1
General partner to investment programs
Cayman Islands
11
10
Manager to investment vehicles
USA
4
4
Holding of land and property
USA
1
1
Investment services
USA
2
1
Management services to investment
programs
USA
2
1
Manager to investment vehicles
UK
1
1
Manager to investment programs
Luxembourg
14
13
Financing/treasury
Luxembourg
3
2
Client access management
Guernsey
1
1
Financing/treasury
Guernsey
6
6
Management services to investment
programs
Guernsey
3
3
Carry vehicles
USA
2
Principal activity as of 31 December
Place of incorporation and
operation
Number of subsidiaries
2024
2023
Notes to the consolidated financial statements
Annual Report 2024
86
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 judgment: 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 structured entities which predominantly consist of investment programs managed by
the Group.
Critical accounting judgment: Control assessment and accounting for
structured entities
The Group assesses its involvement with structured entities (typically 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 structured entities, 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 structured entities 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 structured entities.
This exposure consists of a combination of the stake the Group holds in a structured entity and the Group's
remuneration for the services it provides to the investee. IFRS 10 does not provide clear-cut thresholds for
determining whether or not a structured entity 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 structured entities. Exceptions are 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
Annual Report 2024
87
4.2. Investments in associates
The Group accounted for investments in associates as of 31 December 2024 as summarized below:
Pearl Holding Limited, Guernsey
("Pearl")
Private equity
investments
4.6
4.6
28.2%
LGT Private Equity Advisers AG,
Liechtenstein ("LGT")
Asset
management
0.3
0.3
40.0%
Citivale Group Holdings Limited, UK
("Citivale")
Property development and
asset management
6.4
6.4
30.2%
Trinity Real Estate Investments LLC,
US ("Trinity")26
Property development and
asset management
14.1
14.1
10.0%
Investments in associates
25.4
In millions of Swiss francs as of 31 December
2024
Principal
activity
Fair
value
Carrying
value
Ownership
Balance as of 1 January
9.9
13.4
Purchase of investments in associates
19.6
Redemption of shares (Pearl)
(4.3)
(1.9)
Share of results (finance income and expenses)
3.3.
(0.7)
(0.9)
Share of results (other operating income)
1.1.
0.1
(0.1)
Exchange differences
0.8
(0.6)
Balance as of end of period
25.4
9.9
In millions of Swiss francs
Note
2024
2023
Citivale and Trinity were acquired as of 11 January 2024 and 12 April 2024, respectively, to strengthen
the Group's real estate business.
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, Citivale and
Trinity is disclosed as other operating income (see note 1.1.). The Group assesses these results as
comparable to management services and therefore discloses them 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.).
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
Issued as of 1 January
26'700'000
26'700'000
Issued during the period
Issued as of 31 December - fully paid in
26'700'000
26'700'000
In effective number of shares
2024
2023
The issued share capital of the Company comprises 26’700’000 registered shares (2023: 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.
Notes to the consolidated financial statements
Annual Report 2024
88
26 The Group has determined it has significant influence over Trinity because it has meaningful representation on governing bodies of the associate. In addition, there is interchange of managerial personnel between the Group and Trinity, and the Group provides essential technical information to Trinity.
(a) Legal reserves
—
Legal reserves comprise the reserves which are to be maintained due to the legal requirements as
indicated in the Swiss Code of Obligations. The Group’s legal reserves amount to CHF 218'100 as of
31 December 2024 (31 December 2023: CHF 218'100), consisting of CHF 217'100 (31 December 2023:
CHF 217'100) for legal reserves from capital contributions and of CHF 1'000 (31 December 2023:
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 795'965 (2023: 719'717) 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.
(d) Dividends
—
The Company pays an annual dividend following the approval of the appropriation of available earnings
by the owners of the Company at the annual general meeting, typically held in May. The Company paid a
dividend of CHF 39.00 per share on 28 May 2024 (31 May 2023: CHF 37.00). As the Company's
treasury shares are not eligible for a dividend payment, the dividend distribution of CHF 1'041.3 million
approved in May 2024 (May 2023: CHF 987.9 million) was not fully distributed, i.e. a total of CHF 1'018.0
million was paid out (May 2023: CHF 959.2 million). After the reporting date, the BoD proposes a
dividend distribution of CHF1'121.4 million (CHF 42.00 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 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 2024 and
2023.
Capital band
At the annual general meeting of shareholders on 22 May 2024, Partners Group's shareholders
introduced a capital band (Kapitalband). Under the capital band, the Board of Directors is authorized to
increase the share capital of the Company up to the amount of CHF 293'700. The Board of Directors is
authorized within the capital band to increase the share capital until 22 May 2029 once or several times
and in any amounts up to the upper limit. The capital increase(s) may be effected by issuing up to
2'670'000 fully paid-in registered shares with a par value of CHF 0.01 per share. If the share capital is
increased from conditional capital (see below), the upper limit of the capital band increases accordingly.
Capital reductions are not allowed under the capital band.
Conditional capital
The Company has conditional capital of up to a maximum amount of CHF 40’050. The Company's share
capital may be increased as a result of exercised options and granting of shares through the issuance of
up to 4'005'000 fully paid-in registered shares with a par value of CHF 0.01 per share, if sourced from
the conditional capital. The conditional capital is exclusively reserved for share-based incentive plans of
the Group.
Notes to the consolidated financial statements
Annual Report 2024
89
(f)
Outstanding shares
—
The computation of the weighted average number of ordinary shares outstanding during the period is
based on the following figures:
Balance as of 1 January
26'700'000
719'717
25'980'283
Purchase of treasury shares
416'954
(416'954)
Disposal of treasury shares
(340'706)
340'706
Balance as of 31 December
26'700'000
795'965
25'904'035
Weighted average number of shares outstanding
during the period (360 days)
25'983'451
Shareholders above 5% (in % of shares issued)
Shares held
in %
Dr. Marcel Erni
1'341'483
5.02%
Alfred Gantner together with family members27
1'341'506
5.02%
Urs Wietlisbach
1'355'083
5.08%
BlackRock Inc.
1'340'353
5.02%
UBS Fund Management (Switzerland) AG
1'336'968
5.01%
In effective number of shares
2024
Shares
issued
Treasury
shares
Shares
outstanding
Balance as of 1 January
26'700'000
790'189
25'909'811
Purchase of treasury shares
67'367
(67'367)
Disposal of treasury shares
(137'839)
137'839
Balance as of 31 December
26'700'000
719'717
25'980'283
Weighted average number of shares outstanding
during the period (360 days)
25'929'206
Shareholders above 5% (in % of shares issued)
Shares held
in %
Dr. Marcel Erni
1'339'694
5.02%
Alfred Gantner together with family members27
1'339'689
5.02%
Urs Wietlisbach
1'353'294
5.07%
BlackRock Inc.
1'340'353
5.02%
In effective number of shares
2023
Shares
issued
Treasury
shares
Shares
outstanding
4.4. Related party transactions
The Group has related party relationships with its key management personnel and entities controlled by
them, its investments in associates (see note 4.2.) as well as with its pension funds (see note 2.3.2.).
(a) Key management personnel and entities controlled by them
—
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:
Notes to the consolidated financial statements
Annual Report 2024
90
27 The shareholder group was formed in 2023 based on a shareholders' agreement with Alfred Gantner acting as representative of the shareholder group.
Board of Directors
Short-term employment benefits
2.7
3.0
Other compensation
0.1
0.1
Share-based payment expenses
7.7
6.3
Other long-term benefits (MCP)
0.5
0.9
Post-employment benefits
0.2
0.2
Total
11.2
10.5
Executive Team
Short-term employment benefits
11.0
9.9
Other compensation
0.5
0.3
Share-based payment expenses
18.1
15.8
Other long-term benefits (MCP)
5.8
2.6
Post-employment benefits
0.7
0.8
Total
36.1
29.4
Total Board of Directors and Executive Team
47.3
39.9
In millions of Swiss francs
2024
2023
At the relevant reporting date, the BoD and the Executive Team were holding the following number of
options, non-vested shares, and unrestricted shares:
Options and non-vested shares
Board members (vested options)
4'570
Members of the Executive Team (options and non-vested shares)
148'703
133'793
Total
148'703
138'363
In effective number of options and non-vested shares as of
31 December
2024
2023
Share ownership (unrestricted)
Board members
4'393'820
4'386'177
Members of the Executive Team
33'856
37'317
Total
4'427'676
4'423'494
In effective number of shares as of 31 December
2024
2023
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 2024.
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 2.0 billion as of 31 December 2024 (31 December 2023:
CHF 2.3 billion), of which CHF 1.6 billion (2023: CHF 1.9 billion) is committed to closed-ended programs
and CHF0.4 billion (2023: CHF0.4 billion) to evergreen programs.
Transactions with entities controlled by key management personnel of the Group
The Group acquired the royalty business from an entity controlled by key management personnel.
Refer to note 4.5. for more details on the business combination.
In addition, effective November 2024, the Group commenced leasing out premises to an entity
controlled by key management personnel under a rental agreement with a minimum lease term of five
years. The rental income recognized during the reporting period amounted to CHF 0.1 million.
These transactions were conducted on terms equivalent to those that prevail in arm's length
transactions.
Notes to the consolidated financial statements
Annual Report 2024
91
(b) Transactions with other related parties
—
In 2024, associates purchased services from the Group in the amount of CHF 0.8 million (2023: CHF 1.2
million).
As of 31 December 2024, loans to employees of the Group amounted to CHF 12.6 million (2023: CHF
9.4 million) and were included in other financial assets. The loans to related parties of the Group bear
interest at market-related interest rates.
The Group purchased treasury shares at arm’s length from its shareholders employed by the Group as
follows:
In effective number of shares
2024
2023
Purchase of treasury shares from shareholders employed by the Group
16'730
22'582
Average purchase price per share (in Swiss francs)
1'277.28
1'014.39
4.5. Acquisitions
(a) Royalty business
—
As of 1 July 2024, the Group acquired the royalty business from a related party (see note 4.4.). This
transaction involved the purchase of a 100% stake of a Luxembourg-based investment management
entity. In addition, the Group replaced the seller as the investment manager of the acquired funds, and
selected key employees transitioned to the Group. The acquired set constitutes a business.
The acquisition of the royalty business has enabled the Group to make royalties available to the Group's
investors through the firm's range of bespoke solutions and the launch of dedicated royalties vehicles.
The Group is currently building up its tailored mandate solutions for existing and new institutional clients
and its structured private wealth products. Royalties represent the fifth asset class on the Group's
private markets platform and constitute a new operating segment.
For the six months ended 31 December 2024, the royalty business contributed revenue of CHF 0.9
million. If the acquisition had occurred on 1 January 2024, management estimates that consolidated
revenue for the year would have been CHF 1.6 million.
Net assets and goodwill acquired were as follows:
In millions of Swiss francs as of 31 December
2024
Intangible assets
10.8
Other identifiable assets and liabilities
0.0
Net assets acquired at fair value
10.8
Deferred revenue
(12.4)
Goodwill
15.5
Total purchase consideration paid in cash
13.9
Cash acquired
0.0
Net cash outflow on acquisition
13.9
The goodwill is mainly attributable to the benefits to be achieved from integrating the royalty business
into the Group's existing private markets platform and to the skills and technical talent of the acquired
business’ workforce.
The Group incurred acquisition-related costs of CHF 0.4 million, which were recognized in the
consolidated statement of profit or loss as other operating expenses.
The acquisition of the royalty business was accompanied by a linked transaction where the Group
committed to providing complimentary management services to the seller. This resulted in the
recognition of deferred revenue amounting to CHF 12.4 million, reflecting the fair value of the future
services expected to be rendered.
Notes to the consolidated financial statements
Annual Report 2024
92
(b) Empira Group
—
Following the transaction’s announcement in December 2024, the Group closed the acquisition of a
100% stake in Empira AG and its subsidiaries ("Empira Group") on 7 January 2025. Empira Group is a
vertically integrated real estate investment manager and developer and enhances the Group's vertical
depth in sectors like residential and transition to green assets with a focus on the DACH region.
The total purchase price for the business combination will be settled partly in cash and partly in shares,
includes contingent consideration, and depends on Empira Group's balance sheet movements until the
closing date of the transaction. Since Empira Group's financial statements as of the closing date of the
transaction were still being prepared, the purchase price remained undetermined at the time this report
was published. Consequently, the allocation of the purchase price for this transaction was still in
preparation as of the publication of this report.
No new debt financing and no new shares were issued in connection with this transaction.
Notes to the consolidated financial statements
Annual Report 2024
93
Partners Group campus | Denver, USA
5. Other disclosures
5.1. Property, equipment, and right-of-use assets
Cost
Balance as of 1 January
62.6
87.1
160.3
169.6
12.9
37.9
16.7
547.1
63.2
93.9
117.5
87.5
12.5
33.1
14.8
422.5
Additions
10.2
3.2
30.3
10.0
60.4
3.4
117.5
52.3
83.5
1.4
13.8
3.3
154.3
Transfers
182.3
(199.7)
8.4
7.5
(1.5)
1.3
(1.3)
—
Disposals
(10.4)
(0.5)
(5.6)
(0.4)
(16.9)
(0.1)
(6.8)
(0.3)
(7.2)
Exchange differences
0.4
6.2
6.6
0.6
1.4
0.7
15.9
(0.6)
(8.1)
(9.4)
(0.1)
(1.0)
(2.2)
(1.1)
(22.5)
Balance as of 31 December
63.0
285.8
159.7
0.2
31.4
94.1
27.9
662.1
62.6
87.1
160.3
169.6
12.9
37.9
16.7
547.1
Accumulated depreciation
Balance as of 1 January
(9.3)
(61.3)
(9.7)
(17.1)
(12.8)
(110.2)
(8.0)
(48.0)
(8.7)
(21.9)
(12.3)
(98.9)
Depreciation
(2.8)
(18.9)
(1.8)
(4.6)
(2.8)
(30.9)
(1.9)
(16.2)
(1.8)
(2.9)
(1.6)
(24.4)
Disposals
9.6
0.5
5.4
0.4
15.9
0.1
6.8
0.3
7.2
Exchange differences
(0.6)
(1.7)
(0.5)
(0.4)
(0.6)
(3.8)
0.6
2.8
0.8
0.9
0.8
5.9
Balance as of 31 December
—
(12.7)
(72.3)
—
(11.5)
(16.7)
(15.8)
(129.0)
—
(9.3)
(61.3)
—
(9.7)
(17.1)
(12.8)
(110.2)
Carrying amount
As of 1 January
62.6
77.8
99.0
169.6
3.2
20.8
3.9
436.9
63.2
85.9
69.5
87.5
3.8
11.2
2.5
323.6
As of 31 December
63.0
273.1
87.4
0.2
19.9
77.4
12.1
533.1
62.6
77.8
99.0
169.6
3.2
20.8
3.9
436.9
Impairment losses incurred
nil
nil
In millions of Swiss francs
2024
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
Total
Notes to the consolidated financial statements
Annual Report 2024
94
Accounting policy: Property, equipment, and right-of-use assets
Asset class
Useful life
Nature and policy
Buildings
20-60 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.
Office furniture
5-15 years
Interior fittings
5-30 years
Equipment and IT fittings
3-5 years
Land
Indefinite
Land is stated at cost.
Right-of-use assets
Typically the lease
period
Refer to note 5.3. for policies relating to lease
accounting. Depreciation is calculated using the
straight-line method.
Construction in progress
Not yet depreciated
Construction in progress is stated at cost and
transferred to the respective class when available for
use.
Notes to the consolidated financial statements
Annual Report 2024
95
Partners Group campus | Baar-Zug, Switzerland
5.2. Intangible assets and goodwill
Cost
Balance as of 1 January
28.0
4.0
19.5
92.4
5.7
149.6
30.3
4.2
24.3
97.2
11.8
167.8
Additions
10.8
2.8
13.2
26.8
2.2
4.5
6.7
Change in scope of consolidation - additions
15.5
10.8
26.3
Transfers
1.5
1.5
Disposals
(4.1)
(3.7)
(7.8)
(7.0)
(4.5)
(6.1)
(17.6)
Exchange differences
1.2
0.2
0.0
2.7
4.1
(2.3)
(0.2)
0.0
(4.8)
(7.3)
Balance as of 31 December
44.7
15.0
19.7
115.4
5.7
200.5
28.0
4.0
19.5
92.4
5.7
149.6
Accumulated amortization and impairment losses
Balance as of 1 January
(4.0)
(16.4)
(64.4)
(3.7)
(88.5)
(4.2)
(20.5)
(59.3)
(9.2)
(93.2)
Amortization
(0.5)
(2.5)
(14.2)
(0.5)
(17.7)
(2.9)
(13.2)
(0.6)
(16.7)
Disposals
4.1
3.7
7.8
7.0
4.5
6.1
17.6
Exchange differences
(0.3)
(0.0)
(2.1)
0.0
(2.4)
0.2
0.0
3.6
3.8
Balance as of 31 December
—
(4.8)
(14.8)
(77.0)
(4.2)
(100.8)
—
(4.0)
(16.4)
(64.4)
(3.7)
(88.5)
Carrying amount
As of 1 January
28.0
—
3.1
28.0
2.0
61.1
30.3
—
3.8
37.9
2.6
74.6
As of 31 December
44.7
10.2
4.9
38.4
1.5
99.7
28.0
—
3.1
28.0
2.0
61.1
Impairment losses incurred
nil
nil
In millions of Swiss francs
2024
2023
Goodwill
Acquired
client
contracts
Software
Contract
costs
Other
intangible
assets
Total
Goodwill
Acquired
client
contracts
Software
Contract
costs
Other
intangible
assets
Total
Notes to the consolidated financial statements
Annual Report 2024
96
Goodwill
Indefinite
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.
Acquired client contracts 3-10 years
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.
Software
3-5 years
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 a service
contract, for which costs are expensed as incurred.
Contract costs
4-5 years
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.
Accounting policy: Intangible assets and goodwill
Intangible asset class
Useful life
Nature and policy
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.
Accounting policy: Intangible assets and goodwill
Intangible asset class
Useful life
Nature and policy
Impairment testing for CGUs containing goodwill
The carrying amount of goodwill as of 31 December 2024 of CHF 44.7 million (2023: CHF 28.0 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 16.1 million (2023: CHF 15.0 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 13.1 million (2023: CHF 13.0 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.
•
Goodwill of CHF 15.5 million relating to the acquisition of the royalty business in 2024 has been
allocated to the royalties segment (for further information see note 4.5.).
For the private equity CGU, the free cash flow of the year 2024 exceeds the total identifiable net assets,
including goodwill. The Group does not expect this to change in the foreseeable future. For the real
estate CGU, the impairment test performed did not result in any impairment requirement. No further
indicators were identified which could lead to an impairment and accordingly, no impairment was
recognized in 2024 (2023: none).
Notes to the consolidated financial statements
Annual Report 2024
97
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, which 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
Lease liabilities as of 1 January
105.0
77.5
Additions
3.0
47.8
Removals
(0.0)
(0.9)
Accreted interest
2.3
3.7
Lease payments
(16.1)
(15.8)
Exchange differences
5.2
(7.3)
Lease liabilities as of 31 December
99.4
105.0
Current liabilities
14.6
14.3
Non-current liabilities
84.8
90.7
Lease liabilities as of 31 December
99.4
105.0
In millions of Swiss francs
2024
2023
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
Annual Report 2024
98
5.4. Other operating expenses
Third-party services
(35.1)
(31.6)
Property-related costs
(7.7)
(7.6)
Administrative expenses
(52.0)
(46.7)
Travel and representation expenses
(25.0)
(21.6)
Other operating expenses
(119.8)
(107.5)
In millions of Swiss francs
2024
2023
5.5. Income taxes
5.5.1. Income tax expenses
Current tax expenses
Current income taxes
(185.8)
(184.8)
Pillar Two income taxes
(18.0)
Total current tax expenses
(203.8)
(184.8)
Deferred tax expenses/(income)
Deferred tax (expenses)/income, net
relating to the origination and reversal of temporary
differences
5.5.2.
(38.4)
(20.4)
Total deferred tax (expenses)/income
(38.4)
(20.4)
Income tax expenses
(242.2)
(205.2)
In millions of Swiss francs
Note
2024
2023
The differences between the expected tax expenses computed at the weighted average expected
Group tax rate and the effective income tax expenses were as follows:
Profit before tax
1'369.9
1'208.6
Weighted average expected Group tax rate28
18.07%
17.24%
Expected tax expenses
(247.6)
(208.4)
Non-tax-deductible expenses and non-taxable income
8.1
13.4
Applicable tax rates differing from expected rate
2.5
2.2
Non-refundable withholding taxes
(10.0)
(7.7)
Adjustments for current taxes of prior periods
5.6
(6.1)
Other impacts
(0.8)
1.4
Income tax expenses
(242.2)
(205.2)
In millions of Swiss francs
2024
2023
The Group is in scope of the OECD base erosion and profit shifting ("BEPS") Pillar Two rule set and is
impacted by new local tax legislation in countries where it has a taxable presence.
The Group has applied the International Tax Reform - Pillar Two Model Rules (Amendments to IAS 12)
issued by the IASB. Pillar Two legislation has been enacted and/or implemented in several jurisdictions
in which the Group operates. The impact is reflected in the Group's effective tax rate. Due to several
ongoing geopolitical discussions around this topic, a certain level of uncertainty remains.
Notes to the consolidated financial statements
Annual Report 2024
99
28 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.
5.5.2. Deferred tax assets and liabilities
(a) Development of deferred tax assets and liabilities
—
Deferred tax assets and liabilities are recognized in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. The following table shows the development of deferred tax assets and deferred tax
liabilities.
Deferred tax assets
63.9
105.1
Deferred tax liabilities
(9.5)
(6.7)
Deferred tax assets/(liabilities), net
54.4
98.4
In millions of Swiss francs as of 31 December
2024
2023
Balance as of 1 January, net
98.4
103.4
Changes recognized in profit or loss
(38.4)
(20.4)
Changes recognized in equity
(9.3)
22.5
Changes recognized in other comprehensive income
(0.4)
(1.7)
Exchange differences
4.1
(5.4)
Balance of deferred tax assets/(liabilities) as of 31 December, net
54.4
98.4
In millions of Swiss francs
2024
2023
(b) Analysis of deferred tax assets and liabilities
—
The following table shows the development of deferred tax assets and liabilities by category:
Balance as of 1 January, net
1.7
(5.7)
(1.3)
32.8
41.6
29.3
98.4
Changes recognized in profit or loss
(2.3)
(1.4)
1.6
(2.0)
(3.3)
(31.0)
(38.4)
Changes recognized in equity
(9.3)
(9.3)
Changes recognized in other
comprehensive income
(0.4)
(0.4)
Exchange differences
0.2
(0.5)
0.0
2.1
2.5
(0.2)
4.1
Balance as of 31 December, net
(0.4)
(7.6)
(0.1)
23.6
40.8
(1.9)
54.4
In millions of Swiss francs
2024
Financial
investments
Other
non-current
assets
Defined
benefit
plans
Share-
based
payment
transactions
Accrued
variable
compen-
sation &
MCP
Others
Total
Balance as of 1 January, net
2.2
(5.3)
0.4
10.4
46.0
49.7
103.4
Changes recognized in profit or loss
(0.3)
(0.9)
2.2
(1.1)
(20.3)
(20.4)
Changes recognized in equity
22.5
22.5
Changes recognized in other
comprehensive income
(1.7)
(1.7)
Exchange differences
(0.2)
0.5
(0.0)
(2.3)
(3.3)
(0.1)
(5.4)
Balance as of 31 December, net
1.7
(5.7)
(1.3)
32.8
41.6
29.3
98.4
In millions of Swiss francs
2023
Financial
investments
Other
non-current
assets
Defined
benefit
plans
Share-
based
payment
transactions
Accrued
variable
compen-
sation &
MCP
Others
Total
Notes to the consolidated financial statements
Annual Report 2024
100
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
As of 31 December 2024, the Group has undistributed earnings of CHF 94.2 million (31 December 2023:
CHF 67.4 million) which, if paid out as dividends, would be subject to tax in the hands of the recipient. For
CHF 75.6 million (31 December 2023: CHF 50.8 million) of this temporary difference, deferred tax
liabilities amounting to CHF 3.8 million were recognized (31 December 2023: CHF 2.5 million). For the
remaining temporary difference of CHF 18.6 million (31 December 2023: CHF 16.6 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 1.5 million (31 December 2023: CHF 1.3 million).
Accounting policy: Income tax expenses
Income tax expenses for the period comprise current and deferred tax expenses. 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 2024 and 7 March 2025 that would require material
adjustments to the amounts recognized in these consolidated financial statement.
Notes to the consolidated financial statements
Annual Report 2024
101
Annual Report 2024
102
Report of the
auditors on the
consolidated
financial
statements
Report of the auditors on the consolidated financial statements
Annual Report 2024
103
Report of the auditors on the consolidated financial statements
Annual Report 2024
104
Report of the auditors on the consolidated financial statements
Annual Report 2024
105
107
Statement of profit or loss of
Partners Group Holding AG
108
Statement of financial position of
Partners Group Holding AG
110
Notes to the financial statements of
Partners Group Holding AG
118
Proposal by the Board of Directors of Partners Group
Holding AG for the appropriation of available earnings
119
Report of the auditors on the financial statements of
Partners Group Holding AG
Annual Report 2024
106
Index to the
financial
statements of
Partners Group
Holding AG and
report of the
auditors
Other finance income
3.
74.0
106.9
Other income
8.8
0.1
Total income
1'209.3
1'065.3
Third party services
(3.2)
(2.3)
General and administrative expenses
(10.4)
(9.8)
Travel and representation expenses
(0.1)
(0.2)
Finance expense
4.
(180.7)
(186.8)
Profit before tax
1'014.9
866.2
Direct taxes
Profit for the period
1'014.9
866.2
In millions of Swiss francs
Note
2024
2023
Dividend income
2.
1'126.5
958.3
Annual Report 2024
107
Statement of
profit or loss of
Partners Group
Holding AG
Assets
Cash and cash equivalents
39.4
11.1
Other current receivables
5.
1'048.1
1'189.9
Accrued income
2.
820.2
740.0
Total current assets
1'907.7
1'941.0
Financial assets
6.9
Participations
6.
4'280.8
3'077.2
Total non-current assets
4'287.7
3'077.2
Total assets
6'195.4
5'018.2
Liabilities and equity
Liabilities
Current interest-bearing liabilities
7.
2'930.3
2'122.8
Other current liabilities
8.
15.3
15.4
Total current liabilities
2'945.6
2'138.2
Non-current interest-bearing liabilities
7.
1'330.0
830.0
Other non-current liabilities
1.1
Provisions
9.
3.5
3.1
Total non-current liabilities
1'333.5
834.2
Total liabilities
4'279.1
2'972.4
In millions of Swiss francs as of 31 December
Note
2024
2023
Annual Report 2024
108
Statement of
financial
position of
Partners Group
Holding AG
In millions of Swiss francs as of 31 December
Note
2024
2023
Equity
Share capital
0.3
0.3
Legal capital reserves
Reserves from capital contributions
0.2
0.2
Legal retained earnings
Legal retained earnings in the narrower sense
0.0
0.0
Treasury shares
10.
(893.9)
(767.4)
Available earnings
Profit brought forward
1'794.8
1'946.5
Profit for the period
1'014.9
866.2
Total shareholders' equity
1'916.3
2'045.8
Total liabilities and equity
6'195.4
5'018.2
Statement of financial position of Partners Group Holding AG
Annual Report 2024
109
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 Unternehmer-Park 3, 6340 Baar, 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 820.0 million (2023: CHF 740.0 million) of dividend
income related to the 2024 available earnings of its subsidiary Partners Group AG in 2024. As this
dividend will not be paid until 2025, this amount has been recorded as accrued income.
Annual Report 2024
110
Notes to
the financial
statements of
Partners Group
Holding AG
3. Other finance income
Foreign exchange gains
40.8
73.4
Gain on treasury share transactions
1.4
0.4
Total other finance income
74.0
106.9
In millions of Swiss francs
2024
2023
Interest income
31.8
33.1
4. Finance expense
Foreign exchange losses
(22.8)
(89.6)
Loss on treasury share transactions
(74.5)
(41.5)
Other finance expense
(1.6)
(1.2)
Total finance expense
(180.7)
(186.8)
In millions of Swiss francs
2024
2023
Interest expense
(81.8)
(54.5)
5. Other current receivables
Subsidiaries
977.9
1'055.6
Total other current receivables
1'048.1
1'189.9
In millions of Swiss francs as of 31 December
2024
2023
Third parties
70.2
134.3
6. Participations
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%
Partners Group (Luxembourg) S.A.,
Milan Branch1
Milan
Italy
Partners Group (Singapore) Pte.
Limited
Singapore
Singapore
SGD
1'250
100%
100%
Partners Group (Singapore) Pte. Ltd.
Korea Branch1
Seoul
South Korea
Partners Group Private Markets
(Australia) Pty. Ltd.
Sydney
Australia
AUD
200
100%
100%
Partners Group (Brazil) Investimentos
Ltda.
São Paulo
Brazil
BRL
795
100%
100%
Partners Group (Canada) Inc.
Halifax
Canada
CAD
0
100%
100%
Partners Group Cayman Management
I Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
II Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
III Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
IV Limited
George Town Cayman Islands
USD
0
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
111
1 Branch Office
Partners Group Cayman Management
V Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
Direct Equity V Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
VI Limited2
George Town Cayman Islands
USD
0
100%
Partners Group Cayman Management
Direct Infra IV Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
REO II Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Management
Secondary VIII Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group Cayman Client
Access Management I Limited
George Town Cayman Islands
USD
0
100%
100%
Partners Group (Shanghai) Co.,
Limited
Shanghai
China
CNY
12'363
100%
100%
Partners Group Management
(Deutschland) GmbH
Munich
Germany
EUR
25
100%
100%
Partners Group (Guernsey) Limited3
St Peter Port
Guernsey
GBP
31'500
100%
100%
Partners Group Access Finance
Limited
St Peter Port
Guernsey
USD
20
100%
100%
Partners Group Client Access 10 MP
Management Limited
St Peter Port
Guernsey
USD
0
100%
100%
Partners Group Client Access
Management I Limited
St Peter Port
Guernsey
EUR
20
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Partners Group Finance ICC Limited
St Peter Port
Guernsey
CHF
—
100%
100%
Partners Group Finance CHF IC
Limited
St Peter Port
Guernsey
CHF
—
100%
100%
Partners Group Finance EUR IC
Limited
St Peter Port
Guernsey
EUR
—
100%
100%
Partners Group Finance GBP IC
Limited
St Peter Port
Guernsey
GBP
—
100%
100%
Partners Group Finance SGD IC
Limited
St Peter Port
Guernsey
SGD
0
100%
100%
Partners Group Finance USD IC
Limited
St Peter Port
Guernsey
USD
—
100%
100%
Partners Group Management
(Guernsey) LLP3
St Peter Port
Guernsey
GBP
—
100%
100%
Partners Group Management Limited
St Peter Port
Guernsey
EUR
3'640
100%
100%
Partners Group Management II
Limited
St Peter Port
Guernsey
EUR
7'270
100%
100%
Partners Group Management III
Limited
St Peter Port
Guernsey
EUR
8'520
100%
100%
Partners Group Management IV
Limited
St Peter Port
Guernsey
GBP
20
100%
100%
Partners Group Management V
Limited
St Peter Port
Guernsey
USD
13'820
100%
100%
Partners Group Management VI
Limited
St Peter Port
Guernsey
EUR
4'820
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
112
2 The company was incorporated on 11 March 2024.
3 The company is indirectly held by Partners Group Holding AG.
Partners Group Management VII
Limited
St Peter Port
Guernsey
USD
32'620
100%
100%
Partners Group Management VIII
Limited
St Peter Port
Guernsey
EUR
94'500
100%
100%
Partners Group Management IX
Limited
St Peter Port
Guernsey
EUR
42'020
100%
100%
Partners Group Management X
Limited
St Peter Port
Guernsey
USD
92'420
100%
100%
Partners Group Management XI
Limited
St Peter Port
Guernsey
USD
13'000
100%
100%
Partners Group Management XII
Limited
St Peter Port
Guernsey
EUR
54'020
100%
100%
Partners Group Management XIII
Limited
St Peter Port
Guernsey
AUD
78'020
100%
100%
Partners Group Management XIV
Limited
St Peter Port
Guernsey
USD
16'020
100%
100%
Partners Group Management XV
Limited
St Peter Port
Guernsey
CHF
20
100%
100%
Partners Group Finance IBCP (EUR)
L.P. Inc.4
St Peter Port
Guernsey
EUR
—
100%
100%
Partners Group Private Equity
Performance Holding Limited
St Peter Port
Guernsey
EUR
10
100%
100%
Pearl Holding Limited5
St Peter Port
Guernsey
EUR
—
28%
28%
Pearl Management Limited
St Peter Port
Guernsey
EUR
12'020
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Princess Management Limited
St Peter Port
Guernsey
EUR
3'000
100%
100%
Partners Group (Hong Kong) Private
Limited
Hong Kong
Hong Kong
HKD
7'000
100%
100%
Partners Group (India) Private Limited
Mumbai
India
INR
29'615
100%
100%
Partners Group Japan Kabushiki
Kaisha
Tokyo
Japan
JPY
10'000
100%
100%
LGT Private Equity Advisers AG5
Vaduz
Liechtenstein
CHF
—
40%
40%
Partners Group Investment
Management S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management I S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management II S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management REO II
S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management III S.à r.l.
Luxembourg
Luxembourg
EUR
31
100%
100%
Partners Group Management Direct
Infra IV S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management IV S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management Direct
Equity V S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
113
4 The company has been renamed from Partners Group Finance SLP (EUR) L.P. Inc. to Partners Group Finance IBCP (EUR) L.P. Inc. as of 31 January 2024. The company is indirectly held by Partners Group Holding AG.
5 For associated companies refer to note 4.2. of the consolidated financial statements in the Annual Report 2024.
Partners Group Management V S.à r.l.
Luxembourg
Luxembourg
GBP
15
100%
100%
Partners Group Management VI S.à r.l.
Luxembourg
Luxembourg
USD
20
100%
100%
Partners Group Management VII
S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Management
Secondary VIII S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Operator Sub-
Holdings (Luxembourg) S.à r.l.6,7
Luxembourg
Luxembourg
USD
15
100%
Partners Group Orbit S.à r.l.
Luxembourg
Luxembourg
EUR
12
100%
100%
Partners Group Royalties
Management S.à r.l.8
Luxembourg
Luxembourg
USD
15
100%
Partners Group Prime Services
Solutions (Philippines), Inc.
Taguig City,
Metro Manila
Philippines
PHP
13'734
100%
100%
Partners Group Management
(Scotland) Limited7
Edinburgh
Scotland
GBP
—
100%
100%
Partners Group Management (Scots)
LLP7
Edinburgh
Scotland
GBP
—
100%
100%
Partners Group Management (Scots)
II LLP7
Edinburgh
Scotland
GBP
—
100%
100%
Partners Group AG
Baar-Zug
Switzerland
CHF
200
100%
100%
Partners Group Finance (USD) AG9
Baar-Zug
Switzerland
USD
119
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Partners Group Investment Services
AG
Baar-Zug
Switzerland
CHF
100
100%
100%
Partners Group Operator Investments
Holdings AG
Baar-Zug
Switzerland
CHF
100
100%
100%
Partners Group Property AG
Baar-Zug
Switzerland
CHF
100
100%
100%
Partners Group Advisors (DIFC)
Limited
Dubai
UAE
USD
300
100%
100%
Partners Group Middle East Limited10
Abu Dhabi
UAE
USD
10
100%
Citivale Group Holdings Ltd11
North Yorkshire
UK
GBP
—
30%
Partners Group (UK) Limited
London
UK
GBP
35'569
100%
100%
Partners Group (UK) Management
Limited
London
UK
GBP
20'527
100%
100%
Partners Group (USA) Inc.
Delaware
USA
USD
75
100%
100%
Partners Group Colorado Propco,
LLC
Delaware
USA
USD
101'140
100%
100%
Partners Group Finance SLP (USD),
LLC7
Delaware
USA
USD
0
100%
100%
Partners Group US Investment
Services LLC7
Delaware
USA
USD
—
100%
100%
Partners Group US Management CLO
LLC7
Delaware
USA
USD
—
100%
100%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
114
6 The company was incorporated on 12 April 2024.
7 The company is indirectly held by Partners Group Holding AG.
8 The company was acquired on 1 July 2024 and renamed from EGW Management Lux S.à r.l. to Partners Group Royalties Management S.à r.l. as of 18 December 2024.
9 The company has been renamed from Partners Group Treasury AG to Partners Group Finance (USD) AG and the share capital was converted into USD.
10 The company was incorporated on 6 November 2024.
11 For associated companies refer to note 4.2. of the consolidated financial statements in the Annual Report 2024.
Partners Group US Management
LLC12
Delaware
USA
USD
—
100%
100%
Partners Group US Management II
LLC12
Delaware
USA
USD
—
100%
100%
Partners Group US Management III
LLC12
Delaware
USA
USD
—
100%
100%
Partners Group Finance IBCP (USD)
LLC12,13
Delaware
USA
USD
—
100%
Partners Group IBCP US
Management GP LLC12,14
Delaware
USA
USD
—
100%
Partners Group US Operator
Investment Holdings LLC12,15
Delaware
USA
USD
3'000
100%
PG Trinity Holding LLC12,16
Delaware
USA
USD
10'000
100%
Trinity Real Estate Investments LLC17
Delaware
USA
USD
—
10%
Participations as of 31 December
2024
2023
Registered
office
Country of
incorporation
Share Capital in
thousands
Ownership and voting
interest
7. Interest-bearing liabilities
Third parties
2'045.0
1'370.0
Group companies
2'215.3
1'582.8
Total interest-bearing liabilities
4'260.3
2'952.8
Current interest-bearing liabilities
2'930.3
2'122.8
Non-current interest-bearing liabilities
1'330.0
830.0
Total interest-bearing liabilities
4'260.3
2'952.8
In millions of Swiss francs as of 31 December
2024
2023
The Company issued the following corporate bonds denominated in Swiss francs and listed on the SIX
Swiss Exchange:
CH0419041287
21 June 2019
500.0
0.400%
2027
100.098%
100.000%
CH1293714346
26 September 2023
150.0
2.250%
2028
100.528%
100.000%
CH1293714353
26 September 2023
180.0
2.400%
2033
100.132%
100.000%
CH1346742930
7 June 2024
200.0
1.900%
2030
100.169%
100.000%
CH1346742948
7 June 2024
300.0
2.150%
2034
100.000%
100.000%
ISIN
Date of issue
Face value in
millions of CHF
Coupon in %
Year of
maturity
Issue price
in %
Redemption
price in %
The Group repaid its corporate bond (ISIN CH0361532895) with an outstanding amount of CHF 300.0
million and a coupon of 0.15% at the due date of 7 June 2024. There was no gain or loss recorded on this
redemption.
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
115
12 The company is indirectly held by Partners Group Holding AG.
13 The company was incorporated on 16 January 2024.
14 The company was incorporated on 1 August 2024.
15 The company was incorporated on 5 April 2024.
16 The company was incorporated on 9 April 2024.
17 For associated companies refer to note 4.2. of the consolidated financial statements in the Annual Report 2024.
8. Other current liabilities
Accrued audit expenses
0.5
0.4
Other accrued expenses
12.2
13.1
Tax liabilities
0.2
0.3
Other liabilities
2.4
1.6
Total other current liabilities
15.3
15.4
In millions of Swiss francs as of 31 December
2024
2023
9. Provisions
Provisions for compensation to board members
Option grants
2.8
2.4
Management carry program
0.6
0.7
Social security expenses on management carry program
0.1
0.0
Total provisions
3.5
3.1
In millions of Swiss francs as of 31 December
2024
2023
10. Treasury shares
Balance as of 1 January 2023
790'189
1'072.88
847.8
Purchase of treasury shares
67'367
994.55
67.0
Disposal of treasury shares
(137'839)
1'069.36
(147.4)
Balance as of 31 December 2023
719'717
1'066.14
767.4
Number of
shares
Weighted average
price in Swiss francs
Total value in millions
of Swiss francs
Balance as of 1 January 2024
719'717
1'066.14
767.4
Purchase of treasury shares
416'954
1'197.49
499.3
Disposal of treasury shares
(340'706)
1'094.20
(372.8)
Balance as of 31 December 2024
795'965
1'123.04
893.9
Number of
shares
Weighted average
price in Swiss francs
Total value in millions
of Swiss francs
The Company had 1'008'676 (31 December 2023: 1'133'230) outstanding employee options and non-
vested shares (see also note 2.2. of the consolidated financial statements in the Annual Report 2024).
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.
11. Share and option grants to members of the Board of
Directors and the Executive Team
Board of Directors
Shares
592
1'251.00
0.7
795
1'116.50
0.9
Executive Team
Shares
4'400
1'251.00
5.5
112
1'116.50
0.1
Options
55'555
149.65
8.3
49'878
187.47
9.4
2024
2023
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
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
116
12. Commitments and contingent liabilities
Guarantees for subsidiaries
1'512.0
1'237.0
In millions of Swiss francs as of 31 December
2024
2023
The Company and certain subsidiaries maintain the following lines of credit as of 31 December 2024
(see note 3.5.3. (a) of the consolidated financial statements in the Annual Report 2024):
Two unsecured syndicated credit facilities
•
CHF 562 million (31 December 2023: CHF 622 million)
•
CHF 585 million (31 December 2023: CHF 585 million)
Bilateral credit facilities amounting to a total of
•
CHF 365 million (31 December 2023: CHF 30 million)
The amounts drawn by subsidiaries are guaranteed by the Company.
As of 31 December 2024, CHF 715 million were drawn (31 December 2023: CHF 240 million).
13. Shareholders above 5%
As of 31 December 2024, the Company had received notification of five significant shareholders whose
voting rights exceed 5%.
Dr. Marcel Erni
5.02%
5.02%
Alfred Gantner together with family members18
5.02%
5.02%
Urs Wietlisbach
5.08%
5.07%
BlackRock Inc.
5.02%
5.02%
UBS Fund Management (Switzerland) AG
5.01%
Shareholders above 5% as of 31 December
2024
2023
14. Full-time employees
The Company did not have any employees in the reporting year or in the previous year.
15. Subsequent events
No events took place between 31 December 2024 and 7 March 2025 that would require material
adjustments to the amounts recognized in these statutory financial statements.
Notes to the financial statements of Partners Group Holding AG
Annual Report 2024
117
18 The shareholder group was formed in 2023 based on a shareholders' agreement with Alfred Gantner acting as representative of the shareholder group.
Profit brought forward
1'794.8
Profit for the period
1'014.9
Total available earnings
2'809.7
Proposal by the Board of Directors to the Annual General Meeting of shareholders
To be distributed to shareholders
(1'121.4)
To be brought forward
1'688.3
In millions of Swiss francs as of 31 December
2024
Annual Report 2024
118
Proposal by
the Board of
Directors of
Partners Group
Holding AG
for the
appropriation
of available
earnings
Annual Report 2024
119
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
Annual Report 2024
120
Report of the auditors on the financial statements of Partners Group Holding AG
Annual Report 2024
121
Flora Zhao member of the Board of Directors and Chairwoman
of the Nomination & Compensation Committee
Dear clients, business
partners, and fellow
shareholders
The 2024 Annual General Meeting (AGM) of
Shareholders demonstrated strong support for
our Compensation Report 2023, with an 84%
approval rate. This positive outcome
underscores our commitment to transparent
and fair compensation practices. We continue to
prioritize annual engagement with our
stewardship teams and value these
conversations for the insights they provide.
A focus area of this year's report is the
Nomination & Compensation Committee's
(NCC) comprehensive review of the Executive
Team and executive Board members'
compensation based on external data and peer
comparisons. The last such review was held in
2017. For all LTI plans that were awarded since
the last review, the NCC disclosed actual
payouts (detailed in section 1.3.2.2).
2024 performance
The year 2024 marked a period of transition as
markets gradually returned to normal activity
levels. Our strategy of focusing on high-
conviction investment themes and
entrepreneurial ownership continued to serve
us well during this time.
We saw significant increases in our business
activities compared to the previous year. Our
investment activity rose by 66%, while
realizations increased by 53%, both rebounding
from low levels in 2023. This growth occurred
against a backdrop of modest improvements in
overall transaction volumes across the private
markets industry.
Irrespective of these higher activity levels, the
total base compensation for the Executive Team
remained stable, reflecting our commitment to
compensation that is tied to individual function
and contribution. Our equity-based LTI pool
increased 23% compared to the previous year
as a result of our quantitative and qualitative
assessment (detailed in section 1.3.2.).
Improved disclosure on payouts
We introduced the Management Performance
Plan (MPP) in 2017 and have since received
feedback to be more transparent about its
payouts. Initially, payouts were either zero or
very low because each program takes at least
Annual Report 2024
122
Compensation
Report
five years to commence payouts. Now that
these programs are maturing, we are seeing
initial distributions of Partners Group Holding
AG shares to our Executive Team and the
executive members of the Board. To improve
our transparency, the NCC shows current
payout levels as a percentage of the target and
discloses how many shares were delivered
under each MPP program since 2017. It is
worthwhile to note that no new shares were
issued for these payouts as the firm used
treasury shares it had previously bought from
the market to cover these plans. This approach
has enabled the firm to avoid diluting its share
capital since our initial public offering (IPO) in
2006. The NCC is of the opinion that these
equity-based LTI programs have been
optimized since their introduction in 2017 and
decided to keep this element of the
compensation unchanged.
Executive compensation review
In 2024, the NCC conducted an internal
evaluation of the total Executive Team
compensation, as it does on a periodic basis.
The last review was conducted in 2017,
coinciding with the introduction of MPP. Since
then, there have been no substantial
modifications to the remuneration framework.
This most recent review's key outcome was to
reintroduce the Management Carry Program
(MCP), labeled "ExMCP", as an additional
performance fee-based LTI program. The MCP,
in alignment with industry standards, grants
participants rights to future performance fees
from investments made in the review year and
therefore ties rewards to long-term and
sustainable investment performance. It is highly
aligned with client interests and fosters a shared
commitment across Partners Group's senior
employees, who receive their compensation
based on the same metric. MCP differentiates
from MPP, in that the latter is being equity-based
and tied to profitable management fee growth.
Executive Team members at Partners Group
have no longer been eligible for MCP since 2017
as their entire long-term compensation was
replaced by equity-based LTI programs. At that
time, shareholders and proxy advisors raised
concerns about MCP, particularly regarding the
high variability of payouts and the lack of an
appropriate cap on potential remuneration.
We would like to emphasize that these previous
concerns about the MCP have been
acknowledged, and new features have been
implemented to address them. Specifically, we
have introduced a cap on payouts to limit
potential remuneration and significantly
improved transparency on payout disclosure.
These changes aim to alleviate the concerns
raised by stakeholders and enhance the overall
structure of our compensation programs.
The NCC conducted a dual-approach analysis,
examining compensation structures of listed
private market managers globally and reviewing
US private mid-market manager compensation
data. The outcome was that US peers typically
offer higher total compensation, primarily due to
larger LTI plans. With the additional ExMCP
2024, the average total compensation for the
CEO and members of the Executive Team falls
only in the second quartile1 of the benchmark
(detailed in section 1.3.3.), i.e. below the median.
The new ExMCP 2024 will be allocated in three
equal tranches over three years, starting from
2024. The total notional value of the first tranche
stands at USD 33 million for the Executive Team.
The plan is funded from a reserved, but
unallocated portion of these MCP pools,
incurring no additional cost to shareholders and
maintaining the firm's target earnings before
interest and taxes (EBIT) margin of ~60% for
newly generated management fees (assuming
stable foreign exchange rates) as well as for
performance fees. The ExMCP therefore strikes
an optimal balance between improving the
retention of Executive Team members while
being neutral for shareholders.
The ExMCP is designed with stringent,
ambitious performance conditions, with
maximum payouts only attainable through
exceptional outperformance. These rigorous
performance targets ensure that the plan's
rewards are genuinely at risk, including the
possibility of zero payout for underperformance.
Additionally, to avoid excessive payouts, the
ExMCP is capped at 1.20x the grant value.
In light of the additional performance fee-based
LTI, the NCC has committed to a three-year
freeze on total base compensation for the entire
Executive Team. During this period, this policy
will remain in effect unless an Executive Team
member undergoes a meaningful change in role,
or a new member joins with substantially
increased responsibilities.
In conjunction with that of the Executive Team,
the NCC also reviewed the compensation of
executive members of the Board, where a similar
gap was identified and addressed. In contrast to
the Executive Team, the executive members of
the Board are mandated to represent
shareholder interests and are responsible for
the firm's sustainable growth strategy. The NCC
deemed it important to ensure that the LTI of
executive member of the Board is tied to both
the profitable growth of the firm and the
interests of shareholders. The equity-based
MPP does exactly that. It aligns the Board's
incentives with Partners Group's profitable
growth strategy and shareholder value creation
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1 Compensation quartiles defined as follows: 1st quartile = lowest compensation quartile, 4th quartile = highest compensation quartile.
through a rising share price. Based on the above,
the NCC granted a total top-up to each
executive member of the Board, with a
combined total value of CHF 5 million (detailed in
section 1.3.3.).
Reflecting on my third 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 the NCC, I would like to thank you
for your continued trust and support.
Yours sincerely,
Flora Zhao
Chairwoman of the Nomination & Compensation Committee
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Partners Group campus | Baar-Zug, Switzerland
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 so called "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 continues to separate the Executive
Team's compensation into two types: total base
compensation and LTI, which includes an equity-
based and a performance fee-based plan.
Exhibit 1: Executive Team compensation
Total compensation
Total base compensation
Long-Term Incentives
Cash-based
Equity-based
Performance fee-based
Based on function and
responsibility
Not variable, equal to
cash base salary
Start LTI assessment based on last year's LTI pool
Grants rights to future performance fees from investments
made in the review year and therefore ties rewards to long-
term and sustainable investment performance.
Quantum for each executive determined based on function,
funded by unallocated portion of carried interest.
Hence, no additional costs to shareholders.
To avoid excessive payouts, the MCP is capped
at 1.20x the grant value.
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
(SPP)
Management Performance
Plan (MPP)
Management Carry
Plan (MCP)
Granted either
in options or in shares
Step 1:
Management
Fee EBIT
growth
Step 2:
Performance
fees
generation
Meeting minimum ex-ante
defined return targets
for client portfolios
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,
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125
disability, death, and 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 2024, no adjustments have
occurred.
1.3.2. Equity-based LTI
At Partners Group, we promote
entrepreneurship and long-term thinking
through our equity-based LTI program. We base
the calculation of the compensation factor for
this year's LTI pool on two types of targets.
Exhibit 2 provides more details on those targets.
• Quantitative targets: measure the
company's financials and investment
development.
• Qualitative targets: evaluate progress on
strategic goals (six key areas) and
Environmental, Social, and Governance (ESG)
objectives.
The compensation factor is multiplied by the
previous year's LTI pool to determine the current
year's pool. There is no floor to the
compensation factor and it is capped at 2.0
times the previous year's pool. A factor of 1.0
means the LTI pool stays the same as last year
(adjusted for team changes). A factor below 1.0
indicates underperformance, while those above
1.0 show outperformance. In extreme cases, a
factor of 0.0 would result in no LTI pool for the
year.1
Once the value of this equity-based LTI pool of
the current year is determined, it is split equally
across SPP and MPP.
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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.
Partners Group campus | Baar-Zug, Switzerland
Exhibit 2: Executive Team-level objectives for equity-based LTI
Quantitative
50%
Investment
platform
• Achieve sustainable expansion and scale of investment capacity
• Create long-term value in portfolio assets
50%
Financials
• Focus on continuous growth through client satisfaction and therefore assets
under management (AuM) advancement
• Balance cost growth vs revenue growth
Qualitative
Partners Group's six strategic focus areas
80%
Transformational
investing
• Deepen and expand thematic market insight in future growth sectors and
expand pipeline of target assets
• Drive institutional entrepreneurship at scale with portfolio asset boards at the
center of vision, strategy, and accountability
Expand the investment
platform
• Become a leader in extended middle markets and in providing all-
encompassing private equity solutions
• Expand into growth equity strategies across direct equity and infrastructure;
build out middle market leadership, ancillary credit strategies and key
thematic real estate platforms; grow cross-sector royalties
Differentiate with
bespoke solutions
• 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
Develop new markets
• Expand across regions, including in the US, Asia, and Middle East, in order to
reach new clients and increase local presence
• Release new private markets solutions, such as evergreen solutions for
global royalty investments and ancillary solutions in credit
Organize for
effectiveness
• Leverage technology to allow for scale and improved efficiency across the
platform
• Further realize efficiencies of scale across our services organization by
leveraging external service providers and systems to build effectiveness
Live the PG way
• Take ownership and work with an entrepreneurial mindset to reduce
complexity, come with solutions, and ultimately deliver better results for all
stakeholders
• Attract, retain, and develop diverse talent to realize full potential of private
markets, encouraging employee engagement with a culture of innovation
20%
ESG
• Corporate level - create a positive and lasting impact for all stakeholders
• Portfolio asset level - build better and more sustainable assets and
businesses
Exhibit 3: Key characteristics of SPP, MPP and MCP
Instrument
Equity incentive scheme
(single-component)2
Equity incentive scheme
(multi-component)
Performance fee-based cash
incentive scheme
Philosophy
Promotes ownership mentality
and drives operational
performance of the firm
Promotes profitable earnings
growth and investment
performance
Promotes investment
performance
Performance
condition
Dependent on instrument
chosen:
• Yes, if options are selected
(payouts only achievable
through share price
appreciation)
• No, if shares are selected
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
Yes, payouts only achievable if
return thresholds are reached.
Not meeting the thresholds of
some funds gradually reduces
target payouts. If return
thresholds are not met, payouts
are zero
Vesting4
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. 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
Vests linearly over a five-year
period, subject to a minimum five-
year tenure in the respective
committee
Payout
In Partners Group Holding AG
(PGHN) shares or cash,
dependent on conversion
approach
In PGHN shares, between years
six and fourteen
In cash, typically between year
five and twelve; payouts are
capped at 1.20x the grant value.
Dilution
None. Share will be delivered out
of current treasury pool. Partners
Group is well covered.
None. Share will be delivered out
of current treasury pool. Partners
Group is well covered.
None. Performance fee revenues
will match performance fee-
related costs, all is cash-based.
SPP
MPP
MCP
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2 Starting in 2023, 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 19.
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.
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. As in 2023, the Executive
Team members have the choice of receiving
their SPP in the form of either PGHN share
options (with strike set "at the money") or PGHN
shares, or a mix of PGHN share options and
shares. Executive Team members elected to
receive all or a portion of their SPP in PGHN
share options. Disclosure on allocations can be
found in the footnotes to Exhibit 19.
1.3.2.2. MPP
MPP reinforces an alignment of interests with
clients and stakeholders through two
independent conditions. Achieving only one
condition while not the other results in no
payout. The MPP granted in 2024 follows the
same principles as MPP granted in 2023.
• 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.5 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
equals 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)6. 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 2024
MPP, the minimum annual growth rate did not
change compared to last year and was set at 2%
p.a. The cap was calibrated at an annual growth
rate of 12%, resulting in a maximum payout factor
of 6.0x (2023: 7.4x) as shown in Exhibit 4.
Example: a Management Fee EBIT growth rate
of 8% p.a. after the assessment period results in
a factor of the initial grant value of 3.3x. If the
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128
5 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 2024 starting on page 34. 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.
6 Starting with the 2023 MPP program, MPP recipients can elect to exercise their MPP right in years five, six, or seven.
Exhibit 4: Minimum Management Fee EBIT
growth of 2% required for MPP value creation
initial grant value in 2024 was CHF 1.0 million,
then the intrinsic value of the MPP would be CHF
3.3 million. In any case, the intrinsic value of the
2024 MPP participation right cannot exceed
6.0x of the grant fair value which is applicable for
growth rates of 12% or higher (the cap).
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.7 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 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 6 shows actual payouts for Partners
Group's globally diversified carry plans over a
period from 2010 to 2024 as of 31 December
2024. Expected future payouts of each vintage
pool are based on the most recent available
performance assessment of assets and/or
funds defining these vintage pools as of 30
September 2024.
Exhibit 6: Actual performance fee payouts,
relevant for MPP (and also MCP) vintages
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129
7 Investment period is defined as Q4 of the prior year until Q3 of the respective financial year under review.
Timing
—
MPP payout occurs as performance fees of
investment vintage materialize (see Exhibit 7).
The payout of the intrinsic value typically spans
over a period of 14 years, starting in year 6. The
timing of the payouts is dependent on the time
that the performance fees are earned and
recognized.8 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.9
Payouts of previous MPP programs
—
The LTI consideration of previous years in the
form of MPP has resulted in payouts in Partners
Group shares for the Executive Team and the
executive members of the Board. Partners
Group issued no additional shares for the payout
of these programs as all required shares were
already bought in advance from the market.
Since the IPO in 2006, Partners Group has not
diluted its share capital.
Any MPP plan that achieves its performance
condition is expected to pay out in the sixth year
after grant. This means that in 2025, we expect
the first payout for MPP 2019 and continue to
expect payments for MPP 2018 and 2017. We
summarized all share distributions since the
launch of MPP until 31 December 2024.
Program
# of Partners Group shares
distributed to participants
MPP 2017
19'484
MPP 2018
43'525
MPP 2019
Zero payout today;
payouts only commence
in the sixth year after grant
MPP 2020
MPP 2021
MPP 2022
MPP 2023
MPP 2024
In section 2.3.1, we provide enhanced
transparency regarding David Layton's realized
compensation as CEO of Partners Group over
the past three years. This comprehensive
overview presents the total annual payout,
including base salary, deferred cash payments,
and all vested and/or paid deferred performance
awards. Realized pay represents the culmination
of awards granted and approved by
shareholders since the implementation of the
MPP in 2017. This approach provides a more
accurate picture of the CEO's actual earnings,
as opposed to potential or projected
compensation.
1.3.3. Performance fee-based LTI
The NCC conducted an internal review of the
total Executive Team compensation, as it does
on a periodic basis. The NCC emphasized that
retaining Executive Team members to support
the firm's future growth in the next private
markets cycle is crucial. This coming cycle will
be pivotal for the industry, separating those
managers who will emerge as leading global
platforms from those which will remain local or
regional players with limited breadth. The firm’s
strategic focus on growing our North American
business exemplifies this trend. North America
represents around 50% of total private markets
AuM, while North American clients account for
24% of Partners Group's AuM as of 31
December 2024. We aim to close this gap in
order to tap into a larger pool of capital which we
expect to only expand as private wealth and the
US defined contribution systems continue to
increase their respective allocations to our
industry.
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8 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.
9 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.
Exhibit 7: MPP payout occurs as performance
fees of investment vintage materialize
Following the review, the NCC recommended
reintroducing the MCP as an additional
performance fee-based LTI. Before 2017,
Executive Team members at Partners Group
have not been eligible for the MCP, as it was
entirely replaced by two equity-based LTI
programs. At that time, shareholders and proxy
advisors raised select concerns about the MCP,
particularly regarding the lack of a cap on
potential remuneration.
We would like to emphasize that these previous
concerns about the MCP have been
acknowledged, and new features have been
implemented to address them. Specifically, we
have introduced a cap on payouts to limit
potential remuneration and significantly
improved transparency in payout disclosure.
These changes aim to alleviate the concerns
raised by stakeholders and enhance the overall
structure of our compensation programs.
The MCP, in alignment with industry standards,
grants participants rights to future performance
fees from investments made in the year under
review. It therefore directly ties rewards to long-
term investment performance. The NCC
believes that the reintroduction of MCP for
Executive Team members further aligns our
compensation structure with the prevailing
industry standard. In addition, it aims to reward
the Executive Team and Executive Board
members for their client- and investment-related
work, ensuring a 1:1 alignment with investment
performance and by extension client returns.
Our review
—
The NCC has adopted a dual approach to
evaluate our global competitiveness with
regards to compensation. It has looked at listed
private market managers globally and has also
reviewed the compensation data for different US
mid-market private markets managers.
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Partners Group campus | Denver, USA
Exhibit 8: Global private markets manager (Mkt cap in USDbn, 31 December 2024)10
1 Blackstone
211
US
2 KKR
131
US
3 Apollo
93
US
4 Brookfield AM
89
US
5 Ares
56
US
6 Partners Group
36
EU
7 Blue Owl
35
US
8 EQT
34
EU
9 CVC
23
EU
10 TPG
23
US
11 Carlyle
18
US
12 Hamilton Lane
8
US
13 Stepstone
7
US
14 Bridgepoint
4
EU
15 Antin Infra
2
EU
1. Listed private markets manager
In terms of market capitalization, Partners Group
belongs to the top 10 industry-leading managers
ranking number six as of 31 December 2024
(see Exhibit 8). The NCC therefore determined
that it was essential to conduct a comprehensive
global review of compensation structures
among the largest listed private market
managers, focusing on senior executive
compensation. The last compensation review
was conducted in 2017, coinciding with the
introduction of MPP. Since the implementation,
there have been no substantial modifications to
our remuneration framework.
The US market provides broader transparency
on compensation levels of executives. On the
other hand, in Europe, performance fees
allocated to executives across many listed
private market managers are not disclosed to
shareholders at an individual or at a committee
level.11 Since European peers disclose very little
information about the full extent and structure of
their executive compensation, it was not
possible to conduct meaningful market
benchmarks which included this region.
Our analysis therefore focused on US listed
private markets managers. The review showed
that almost all US peers offer a combination of
equity and carried interest as LTI for senior
executives. In terms of magnitude, US managers
often provide higher total compensation, driven
by the larger performance fee-based and equity-
based incentives which they allocate. In addition,
we observed that company size and role
differences significantly impact LTI levels. The
benchmarking shows that for executives in the
two middle quartiles, over 90% of their total
compensation comes from performance fee-
based and equity-based LTI.
The outcome of our review indicated that even
with the additional MCP, average total
compensation consideration of an Executive
Team member at Partners Group falls below the
peer group's median. The CEO's compensation,
while higher, still remains below the median.
Essentially, the additional MCP enhances the
competitiveness of our compensation structure
when compared to US managers' total
compensation packages, while still not being
excessive when compared to the peer group.
We believe it strikes a balance between
improving our ability to fairly compensate our
global Executive Team members and ensuring a
shareholder-friendly compensation approach
(as the compensation adjustment lies within
Partners Group's communicated target EBIT
margin and therefore comes at no additional
cost to shareholders).
2. US private markets compensation data
In addition to the listed private markets manager
we analyzed various sets of compensation data
for Managing Directors and Partners of US mid-
market private equity managers.12 We
benchmarked this data against our employees of
the same seniority in the Investment and Client
pillars to validate the current LTI quantum.
The analysis revealed that the compensation
package for an average Executive Team
member at Partners Group falls below the
median Managing Director and Partner
compensation in this peer group. We believe this
is partly justified as the compensation in private
markets in the US is structurally higher than in
Europe.
For benchmarking the CEO's compensation, we
utilized the same data set used for Managing
Directors and Partners from US mid-market
private equity firms. However, we expanded the
upper end of the compensation range from the
75th percentile to the 90th percentile to reflect
the additional responsibilities of a CEO.
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10 Source: Bloomberg, January 2025.
11 Managers that make performance fees paid to their executive team transparent: KKR, Blackstone, Ares Corporation, Apollo, Carlyle Group and TPG. Managers that do not make it transparent: Antin Infrastructure, Intermediate Capital Group, CVC Capital and EQT Group.
12 Mid-market managers defined by most recent flagship fund size of USD 10+ billion.
Exhibit 9: 3-year average total compensation in
USDm13,14
Why benchmark against the US?
—
Benchmarking private markets compensation
against the US market is more appropriate and
strategic than using European comparisons for
several reasons:
•
Market leadership: the US leads the global
private markets industry in terms of size,
innovation, and sophistication, setting the
standard for best practices and
compensation structures. Currently, the US
represents approximately 50% of total private
markets AuM globally. Partners Group has
invested over USD 100 billion in North
America across asset classes to date, making
it one of the largest non-US headquartered
private markets managers in the region.
• Talent competition: to attract and retain top-
tier talent, firms must compete on a global
scale; particularly, firms which have a large US
presence. The US market often sets the bar
for competitive compensation packages,
which are applied industry-wide. Carried
interest is the primary compensation
consideration used by all private markets
managers globally. The fund manager's
location is thereby secondary for a global firm.
It is the fund's size that is the driving factor for
compensation. On a global scale, Partners
Group's North American investment
professionals represent 41% of all investment
professionals with our US headquarters in
Colorado being our second largest office after
our headquarters in Zug, Switzerland
• Deal flow and capital: the US market has the
largest concentration of private markets
transactions and available capital, making it a
crucial reference point for industry dynamics
and compensation trends. At Partners Group,
45% of the firm's total net asset value (NAV) is
invested in North America, making it the
strategically most relevant region for the firm.
• Global nature of the industry: private
markets are increasingly global, with many
European firms managing significant US
operations. Using US benchmarks
acknowledges this international scope.
• Client return expectations: many
institutional investors, including those from
Europe, use US performance and operational
standards as benchmarks. Aligning
compensation with these expectations can
enhance investor confidence.
• Innovation in US structures: the US market
often leads in developing new structures that
better align with clients' interests. For
instance, Partners Group leads innovation in
private wealth and manages the largest
private equity evergreen program for US
private wealth clients globally. The firm
launched seven new evergreen programs in
2024, of which three target the US market.
By benchmarking against a US peer group, we
believe we can ensure that we remain
competitive on a global scale, attract top talent,
and align with the industry's leading practices
and investor expectations.
How MCP works
—
Annually, MCP participants are granted rights to
a percentage of future performance fees from
investments made in a given year. Payouts occur
after investments are realized and a pre-defined
minimum return hurdle is met. Up to 40% of
performance fees are distributed to employees.
The remainder goes to the firm and its
shareholders. The payout process typically
spans over 8-12 years from the grant date.
Performance fees are derived from investment
outcomes, which are variable and cannot be
predicted over the extended performance
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13 Peer group for the "average Executive Team member" compensation analysis includes Blackstone Inc., KKR & Co. Inc., Apollo Global Management Inc., Brookfield Asset Management, Ares Management Corporation, Blue Owl Capital, TPG Inc., Carlyle Group, Hamilton Lane Inc., and StepStone Group Inc. For the "average CEO" compensation analysis, the same
peer group is used; however, in two instances where CEO compensation was >85% lower than the average Executive Team member compensation (specifically Apollo Global Management Inc. and Blue Owl Capital), the values for average Executive Team compensation of the company under review were applied for the average CEO compensation.
14 Total compensation extrapolated from Managing Director (MD) and Partner base salaries, bonuses, and carried interest for mid-market funds with assets under management (AuM) exceeding USD 10 billion for their latest raised fund. Data sourced from Heidrick & Struggles' 2024 North American Private Equity Investment Professional Compensation Survey
(available at www.heidrick.com/en/insights/private-equity/2024-north-american-private-equity-investment-professional-compensation-survey) and another proprietary, reputable data provider analyzing 2024 US Carried Interest information as well as 2022 US private markets compensation considerations across quartiles (study released in 2023).
period. If the minimum return hurdle is not met,
MCP payouts may be zero. In all scenarios,
Partners Group's clients remain the primary
beneficiaries of generated returns, followed by
shareholders who receive the majority of
performance fees through dividends.
ExMCP: composition & quantum
—
The ExMCP combines three regular MCP plans
from vintages 2022, 2023, and 2024 ("MCP Pool
2022-2024"). Partners Group allocates up to
40% of its performance fees to employees, with
the NCC and Board determining annually the use
of unallocated portions for different employee
considerations. The ExMCP is funded from the
unallocated portion of these MCP pools. This
means that the additional MCP will come at no
additional cost to shareholders and the firm will
stay within its target EBIT margin of ~60%.
Furthermore, the ExMCP is considered subject
to performance conditions. Underperformance
may generate zero payout.
The total notional value of ExMCP is expected to
be USD 100 million and granted to the Executive
Team in three tranches over three years (USD
33.3 million per annum), subject to annual
general meeting of shareholders (AGM)
approval in the respective years and the
recipients continued employment at Partners
Group.
Cap
—
In the case of strong outperformance of
underlying client portfolios, the actual payout
can be higher than initially anticipated. To avoid
excessive payouts above target, the ExMCP
payout is capped at 1.20x of the grant value.
This cap will be applied to the full additional MCP
grant and not per tranche. Thus, given that the
MCP consists of three separate vintage year
pools (2022, 2023 and 2024), individual vintage
year pools may exceed the cap as long as the
combined vintage pool payout across all three
years does not exceed the cap.
• Floor: 0% of grant value (e.g. USD 0)
• Target: 100% of grant value (e.g. USD 100)
• Cap: 120% of grant value (e.g. USD 120)
At the AGM, shareholders will be asked to
approve the maximum potential payout of the
first tranche of ExMCP 2024 grant. The amount
is greater than the initial grant value to cover any
potential increase in payout resulting from
outperformance in excess of the target. No floor
has been established for the ExMCP program
and therefore in the case of severe
underperformance, the payout can be 0%.
Performance conditions
—
Performance conditions of the additional MCP
are congruent to other MCP plans granted
across the organization. Return hurdles for
eligible funds and assets are established
individually based on their respective risk
profiles. Due to commercial sensitivity, we are
unable to fully disclose the specific targets.
Overall, there are dozens of categories
determining return targets:
•
Traditional closed-ended programs and
mandates: closed-ended programs and
mandates that contain investments belonging
to the 2022-2024 MCP Pools need to achieve
the applicable minimum return hurdle rate
which has been pre-agreed with clients.
Minimum return hurdles for equity strategies
are typically set at between a net Internal Rate
of Return (IRR) of 6-8% and between a net
IRR of 4-6% for credit strategies.
•
Evergreen programs: most of Partners
Group’s evergreen programs charge
performance fees based on a high-water
mark subject to an annual hurdle of 0-5%. If
not, conditions outlined above for traditional
closed-ended funds apply. As such,
evergreen programs that contain investments
belonging to the 2022-2024 MCP Pool need
to achieve a positive value creation net of
management fees (positive NAV
development) above such hurdles.
Not meeting the thresholds in traditional
programs, mandates as well as evergreen
programs will gradually reduce the target
payouts of the 2022-2024 MCP Pools. If none of
the eligible funds meet their return hurdles,
performance fee payouts are zero.
Exhibit 10 illustrates performance targets for
private equity and infrastructure asset classes,
as the two major contributors to Partners
Group's performance fees. There are 20 MCP
sub-buckets across all asset classes in the
global MCP Pool. No payout occurs if minimum
return hurdles are not met or if realizations fall
below investment costs.
To generate payouts, investments must yield
surplus returns and distributions exceeding 1.0x
of the invested capital. As outlined in Exhibit 10,
for direct strategies, we typically target net
Money-Over-Invested-Capital (MOIC) multiples
of greater than 2.0x. These targets usually
correspond to a net IRR between 14-16% to
achieve a payout level of 100%. It is worth noting
that private credit strategies, while having lower
net IRR and MOIC targets, have a substantially
lower contribution to overall performance fee
revenues due to their lower performance fee.
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To achieve these targets, we focus on:
• Thematic sourcing: we research high-
conviction sectors with growth potential,
identifying winning business models. We
strictly adhere to this approach for all control
investments, developing value creation plans
from the outset.
• Entrepreneurial governance: we manage
businesses with an entrepreneurial mindset,
fostering collaboration between the portfolio
company management, board, and our
investment team to align on strategic and
operational priorities.
• Portfolio management: We create
diversified portfolios across vintage years and
economic environments to deliver sustainable
long-term returns.
These elements drive our transformational
investing approach, enabling us to achieve
performance targets. These efforts are highly
resource-intense and require a deep
understanding of operational capabilities in
portfolio assets and businesses.
Exhibit 10: illustrative example of MCP payout
schedule for direct private equity &
infrastructure programs
Vesting
—
The ExMCP 2024 will be granted to the
Executive Team in three tranches over three
years, subject to AGM approval in the respective
years and the recipients continued employment
at Partners Group. Each tranche will have a 5-
year linear vesting schedule. This linear vesting
schedule is subject to a minimum five-year
tenure in the Executive Team. Should an
Executive Team member have not reached the
minimum tenure, each tranche
has a five-year cliff vesting until the minimum
tenure has been reached.15
Changes to the LTI of executive members
of the Board
—
In conjunction with the review of the Executive
Team, the NCC also reviewed the compensation
of executive members of the Board, where a
similar gap was identified. In contrast to the
Executive Team, the executive members of the
Board are mandated to represent shareholder
interests and are responsible for the firm's
sustainable growth strategy. As such, rather
than providing additional MCP benefits, the NCC
recommended maintaining the existing equity-
based LTI component and granting a top-up to
each executive member. In aggregate, they will
be granted an additional CHF 5 million in MPP for
2024. Exhibit 23 illustrates the total MPP
allocation to individual executive members.
The additional MPP grant is subject to AGM
approval and will have the same performance
characteristics as the regular MPP going
forward.
For the avoidance of doubt, the additional MPP is
also funded from a reserved, but unallocated
portion of these MCP pools, incurring no
additional cost to shareholders.
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15 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, so long as they have served for a period of 5 consecutive years in the respective
committee. The vesting relief is subject to the following: the employee (i) is considered a good leaver, (ii) agrees to sign a non-compete agreement and (iii) 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 to achieve an optimal outcome for the business and the employee nearing retirement
1.4. Equal pay analysis
Partners Group is an equal opportunity
employer and complies with all applicable fair
employment practice laws. In order to provide
equal employment and advancement
opportunities to all individuals, Partners Group
commits to making all employment decisions
based on merit, qualifications, and abilities.
On an annual basis, the human resources team
performs an equal pay analysis, which has
shown no pay inequalities in recent years.
Similar to the previous year, the 2024 analysis
will continue to be performed consistently using
the assessment methodology of the EDGE
certified Foundation. The results of the analysis
will be published in our 2024 Corporate
Sustainability Report which will be issued in April
2025. 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 in 2023. The 2024 results
will be independently audited and also published
in our 2024 Corporate Sustainability Report.
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136
Partners Group campus | Baar-Zug, Switzerland
1.5. Non-financial income /
benefits disclosed according
to Art. 732 - 735d of the Code
of Obligations
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.16 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
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.
Therefore, Partners Group's Board has
introduced the ECP to increase incentives for
employees to provide more substantial
commitments and also align an even greater
number of employees with clients. In line with
industry practice, Partners Group offers its
employees (including the Executive Team and
the Board of Directors) similar preferential terms
and conditions to invest in its private markets
programs, offering such investments at no
management fees and no performance fees.
According to 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 19 for the Executive Team and Exhibit 23
for the Board of Directors). The respective
revenues not generated due to the fees waived
for independent Board members are deemed
immaterial and are therefore not influencing 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 (i) to
reduce or fully forfeit unvested parts of the
performance entitlements, shares or options
and/or (ii) not to (fully) pay amounts or deliver
securities for vested performance entitlements,
share or options allocated under the global long-
term compensation plan, and/or (iii) 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, shares or
options ("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 of
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
2024, 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
Directive on Information relating to Corporate
Governance issued by SIX Exchange Regulation
AG require listed companies to disclose
information about the compensation of
members of the Board and Executive Team,
their equity participation in the firm, any loans
made to them, and their relevant mandates
outside the issuer. This annual report fulfills that
requirement. In addition, this annual report takes
into account the principles of the Swiss Code of
Best Practice for Corporate Governance of the
Swiss Business Federation (economiesuisse).
Compensation Report
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137
16 The firm does not generally earn any revenues on its own investments alongside clients as any fees levied are rebated.
Partners Group campus I Denver, USA
1.7.2. Compensation decision-
making authorities
Compensation allocation is an important and
demanding governance and leadership task. As
such, Partners Group's Board assigns the NCC
the task of carrying out a systematic process on
an annual basis. The NCC 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.17 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 11.
Exhibit 11: Approval authorities
Board of Directors, Executive Team
NCC
Q4
Shareholders' AGM
May
(following year)
Group-level budget
NCC
Q3
Board of Directors
ratifies
Q4
Department-level budget
Chairman and CEO Q3
NCC approves
Q4
Compensation pools
Budget/proposal
Timing
Approval
Timing
Chairman of the Board of Directors
Chair of the NCC
Q4
Board of Directors
approves
Q4
Members of the Board of Directors18
NCC
CEO
NCC and
Chairman
Executive Team
Chairman and CEO
Q4
NCC approves, Board
of Directors ratifies
Q4
Senior Members of Management
Executive Team
Members of Management and other
professionals
Department Heads
Executive Team
approves
Individual compensation
Proposal
Timing
Approval
Timing
1.7.3. Committee members
As of 31 December 2024, the members of the
NCC were Flora Zhao (Chairwoman), Anne
Lester, and Gaëlle Olivier. All NCC members are
independent Board members according to the
independence criteria outlined in our Corporate
Governance Report (section 3.1.). The members
were elected by shareholders for a one-year
term with the possibility of re-election.
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 2024, 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 equity-based as
well as performance fee-based LTI. During
the meeting, the Committee defines
guidelines for the allocation of the various
compensation pools.
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138
17 For the full Articles of Association please see: www.partnersgroup.com/articlesofassociation.
18 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.
• 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 11. Partner and Senior
Members of Management-level promotions
and compensation are ratified individually.
2. Executive Team
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.
2.1. 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. We outlined the NCC's approach to the
total base compensation for the CEO and
Executive Team members in Exhibit 12.
Partners Group has committed to a three-year
freeze on total base compensation for the entire
Executive Team, in light of the addition of the
performance fee-based LTI for the next three
years. This policy will remain in effect unless an
Executive Team member undergoes a
meaningful change in role or a new member joins
with substantially increased responsibilities.
Exhibit 12: Total base compensation
for Executive Team members in 2024
(in thousands)
CEO
USD 1'000
USD 1'000
USD 2'000
Executive Team
Dependent on function
Equal to cash base salary
(a) + (b)
Function
Cash base salary (a)
Deferred cash payment (b)
Total cash compensation
Exhibit 13: LTI pool methodology for 2024
Financial performance (50%)
0.00x
1.47x
Investment development (50%)
0.56x
0.97x
Quantitative assessment multiple
0.28x
1.22x
Qualitative assessment (50%)
Strategic objectives (80%)
1.17x
1.29x
ESG targets (20%)
1.00x
1.00x
Qualitative assessment multiple
1.13x
1.23x
LTI pool multiple
(difference to prior year's LTI pool; prior year pool set to 1.00x)
0.71x
-29%
1.23x
+23%
Quantitative assessment (50%)
2023
2024
Cash base salary and pension benefits: the
total cash base salary received by the Executive
Team amounted to CHF 5.5 million (2023: CHF
5.0 million). The increase in cash base salary is
the net result of leavers and new joiners to the
Executive Team in 2024 compared to 2023.
Deferred cash payment: the total deferred
cash payments received by the Executive Team
amounted to CHF 5.5 million (2023: CHF 5.0
million). The increase in total deferred cash
payments was directly linked to the increase in
total cash base salaries.
2.2. LTI grant determination
2.2.1. Equity-based LTI
Based on the overall performance assessment
of the firm's two equally weighted quantitative
and qualitative measures, the NCC suggested to
increasing the overall equity-based LTI pool in
2024 by 23% to 1.23x last year’s pool. Exhibit 13
shows the calculation for this year's equity-
based LTI pool. The Executive Team was
granted nominal equity-based LTI amounting to
CHF 28.2 million in 2024 (2023: CHF 19.0
million), considering the net result of new joiners
and leavers in the Executive Team. Half of the
value was granted in SPP and half in MPP.
Exhibit 19 shows the total full-year
compensation of the Executive Team in greater
detail.
2.2.1.1 Quantitative measures (50%
weighting)
The 2024 performance evaluation based on the
two quantitative input components resulted in a
compensation factor of 1.22x. The assessment
was based on the financial performance and the
investment development outlined in greater
detail below.
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139
Financial performance (50% weighting)
—
Assessment: we assess financial performance
based on the year-on-year change in
Management Fee EBIT.
Result: the Management Fee EBIT19 considered
at the time by the NCC has increased by 15%
(target 10%). The financial performance
therefore outperformed expectations and
resulted in a compensation factor of 1.47x.
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 3% compared
to the prior year (target: equal to prior year). The
investment development therefore marginally
underperformed expectations and resulted in a
compensation factor of 0.97x (rounded).
Exhibit 14: Quantitative assessment 2024
2.2.1.2 Qualitative measures (50%
weighting)
The 2024 performance of the Executive Team,
based on qualitative measures, resulted in a
performance factor of 1.23x (2023: 1.13x). The
assessment is outlined in greater detail below. It
considered whether the firm made progress on
its six strategic focus areas (80% weighting of
1.29x 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 2024, the focus was on furthering
the progress of the six strategic focus areas.
Result: taken together, the Executive Team
exceeded expectations, resulting in a
performance factor of 1.29x (2023: 1.17x). The
individual result was as follows:
Transformational investing (1.25x)
• The Transformational Ownership Review
meeting confirmed well-defined business
strategies and systematic value creation
initiative reviews.
• PG Alpha was widely adopted across the
direct lead portfolio, enhancing transparency
beyond regular reporting obligations and
enabling leaders to better focus on strategic
milestone achievements.
• Portfolio quality and health remained strong;
the successful realization of four large assets
in Q4 during a year of generally low industry
distributions was testament to this this well.
Expand the Investment Platform (1.25x)
• The firm expanded its real estate platform by
acquiring Empira, a vertically integrated
investment platform in the DACH region.
Thereby enhancing its offerings and
introducing new products such as real estate
credit and transition to green residential.
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140
19 Management Fee EBIT Q3 2024 Last Twelve Months (LTM).
• Focus was placed on developing an M&A
pipeline of best-in-class managers creating
complementary investment content that is
financially accretive and culturally aligned.
• The firm diversified its offerings by launching a
new royalties asset class and expanding into
Growth Equity strategies, both with significant
growth potential.
Differentiate with bespoke solutions (1.50x)
• The firm partnered with additional distribution
partners to democratize private markets for
wealthy individuals and advisors, addressing
the allocation gap between institutional and
private wealth investors.
• Seven new evergreen programs were
launched, contributing to a strong year in
private wealth and evergreens, with over 20
evergreens now positioning the firm to attract
more client demand.
Develop new markets (1.25x)
• The firm expanded its global presence by
opening its seventh Asian office in Hong Kong,
bringing its total to 21 offices worldwide. This
move aims to capitalize on growing investor
interest in private markets in the Greater
China Area and further expand its private
wealth client base.
• New fundraising guidance is based on a large
pipeline of opportunities in private wealth and
strategic collaboration initiatives in the
insurance space which was developed
throughout 2024.
• The firm generated inflows in the highly
complex and regulated Defined Contribution
market with a new solution; this opened the
door for modest but scalable growth and
future opportunities.
Organize for effectiveness (1.00x)
• The firm enhanced efficiency and scalability
by leveraging external service providers and
systems to improve effectiveness across its
service organization.
• An 8% reduction in Full-Time Equivalent (FTE)
employees since early 2024 was achieved
through strategic transfers to external service
providers and elimination of redundancies
following a comprehensive process review
coupled with stringent performance
management measures.
Live the PG Way (1.50x)
• The Executive Team adhered to The PG Way
principles leading to successful initiatives
such as eliminating redundancies and
strategic outsourcing of non-core services.
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 2024, the
Executive Team was assessed on its
achievements and progress on the key targets
set for 2024, based on the Sustainability Report
2023.
Result: the Executive Team worked on projects
to meet and progress on specific and material
sustainability topics throughout the year. For
example, the Executive Team worked on a
dedicated initiative to develop a new
Sustainability Data Architecture to address
regulatory compliance through a data-driven
approach. The NCC assessed the Executive
Team to be in line with expectations, resulting in
a performance factor of 1.00x (2023: 1.00x).
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 320
greenhouse gas (GHG) emissions by 2030.
At the portfolio level, the firm has committed
to achieving net zero by 2050, in line with the
Net Zero Investment Framework . In order to
evaluate whether the firm is on track to
achieve these long-term goals, the following
achievements were considered for 2024:
•
More than 60 portfolio companies with active
carbon-reduction initiatives aligned with the
Paris Agreement
•
Adaptation of the Net Zero Investment
Framework (NZIF) across the full portfolio
•
More than 85 portfolio companies with GHG-
reduction strategy
•
More than USD 7.5bn committed to investing in
renewables
In 2024, the Executive Team was evaluated as
being on track to continue to achieve the firm's
2030 net zero emissions, and separately the net
zero emission goals for portfolio assets based
on the above achievements.
•
Social focus: at the corporate and
portfolio level the firm is committed to
promoting diversity and inclusion, recognizing
that a variety of perspectives enhances
performance. Initiatives include employee
networks and working groups dedicated to
fostering an inclusive workplace. Partners
Group emphasizes employee development
and engagement, offering development
programs such as the PG Academy and
supporting employee-run initiatives like PG
Impact, which focuses on creating positive
social impact. The Executive Team had the
following targets and achievements during
the year:
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141
20 Corporate level Scope 3 emissions exclude Scope 3 emissions from "category 15: investments" (GHG Protocol), which are addressed at the portfolio level.
•
More than 30% of our board members 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 2024 for
financial year 2023
•
Ensure 25 or more women are Partners,
Managing Directors, or Board members by
2025
In 2024, the Executive Team continued to
improve the social framework at both a
corporate and portfolio level. Due to various
internal and external factors, the progress on
certain targets (such as the ">25 women in
leadership positions by 2025") has been slower
than in previous years, but remains of strategic
importance to the firm.
•
Governance focus: as business builders,
Partners Group manages both its business
and its investment portfolio like founders and
entrepreneurs. The firm leads by example to
its portfolio companies and delivers a strong
sustainability governance triangle, which
enables the firm to build sustainably as a
responsible investor.
At corporate level, the firm performed and
implemented a formal Double Materiality
Assessment to evaluate how sustainability
factors affect both financial performance and
have a broader societal and environmental
impact. This approach has informed and shaped
their Sustainability Strategy and helps manage
risks and opportunities in operations and
investments.
At the portfolio level, the firm manages material
sustainability topics with the investment
portfolio with an entrepreneurial mindset,
emphasizing strong governance and
collaboration:
•
Conduct a Double Materiality Assessment and
ensure operationalization of materiality-based
approach to sustainability at the firm and the
portfolio
•
Advance the preparation for current and future
changes to sustainability regulations and
reporting standards
•
Educating key internal stakeholders on
sustainability regulations and material topics
The Executive Team made substantial progress
on the above targets and was determined to
have met expectations.
2.2.2 Performance fee-based LTI
The NCC reintroduced MCP for the Executive
Team with the new ExMCP Plan 2024. This
award complements the existing equity-based
LTI and allows our LTI mix to be better in line
with peers across the industry, in terms of
quantum and proportion of LTI relative to cash
compensation (more details in section 1.3.3).
For 2024, a notional allocation of USD 33 million
MCP, with payments capped at 1.20x, has been
granted to Executive Team members, of which
the firm's CEO was granted USD 10 million. The
NCC plans to grant similar MCP programs for
the fiscal years 2025 and 2026, subject to AGM
approval and the recipients continued
employment at Partners Group.
Partners Group office I London, UK
Compensation Report
Annual Report 2024
142
2.3. Compensation
disclosures
2.3.1. CEO compensation
David Layton, Partner and CEO of Partners
Group, receives his total base compensation in
USD. For the purpose of the below his
compensation is expressed in CHF.21 His full-
year 2024 total base compensation amounted
to CHF 1.76 million (2023: CHF 1.80 million using
2023 exchange rate and reported in our 2023
Compensation Report), of which CHF 0.88
million represents his base salary and CHF 0.88
million represents the deferred cash payment.
The NCC maintained his total base
compensation at the same level as prior year.
The total base compensation including other
compensation, such as pension benefits and
social security payments, amounted to CHF2.05
million (2023: CHF 1.93 million).
David Layton's equity-based LTI grant increased
by 19% to 1.19x the previous year’s LTI grant,
thus amounting to CHF 6.0 million in 2024
(2023: CHF 5.1 million), in line with the average
LTI pool increase of 23%. David Layton received
50% of the LTI value in SPP and 50% in MPP.
David Layton's performance fee-based LTI has
been reintroduced and was set based on
benchmarking data as well as budget available.
A detailed description of the additional ExMCP
2024 allocation is made in section 1.3.3. In 2024,
David Layton was granted ExMCP 2024
amounting to a notional value of CHF 8.8 million.
ExMCP 2024 is an entirely performance-based
LTI.
In Exhibit 15, we provide transparency on David
Layton's realized compensation over the past
three years. This comprehensive overview
presents the total annual payout, including base
salary, deferred cash payments, and all vested
and/or paid deferred performance awards.
Realized pay represents the culmination of
awards granted and approved by shareholders
since the implementation of the MPP in 2017.
Awards received before 2017 were not
considered. SPP values represent the value of
shares/options at vesting date and MPP values
represent the value of shares at payout date.
2.3.2. Executive Team member
compensation & highest paid
The total compensation of the Executive Team
can be found in Exhibit 19. The highest-paid
Executive Team member in 2024 was the firm's
CEO, David Layton.
Exhibit 15: Total realized vs. awarded
compensation for David Layton
Compensation Report
Annual Report 2024
143
21 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 2024. Source: Bloomberg.
In thousands of
Swiss francs
Realized Awarded
For the year
Cash base
salary
Deferred
cash
payment
Realized
equity-based
SPP (LTI)
Realized
equity-based
MPP (LTI)
Realized
performance
fee-based
MCP (LTI)
Realized in
respective
years relating
to past awards
(since 2017)
Awarded in
respective
years as new
grants
2024
881
881
2'251
10'305
0
14'319
16'569
2023
899
899
1'381
3'701
0
6'879
6'848
2022
859
859
1'242
0
0
2'960
8'968
2.4. Compensation ratios and limits
In our annual report 2017, we introduced
compensation caps which have not evolved
since, and where we fixed the granted LTI
nominal value to 5.0x22 of the total base
compensation of an Executive Team member.
Following the review of the LTI and the
introduction of the ExMCP Plan 2024, we
adjusted this ratio to accommodate for the
additional LTI where we will have a maximum
ratio of 10x for the CEO and 8x for the other
Executive Team member, which would include
both the equity-based LTI and the performance
fee-based LTI. It also reflects the compensation
structure that we see in our industry which
significantly overweight LTI considerations.
For 2024, the ratio between the Executive Team
members' LTI compared to their total base
compensation ranged from 1.37x to 6.76x,
excluding the CEO who has a ratio of 8.41x. This
range therefore falls below the new
compensation cap for the LTI and does not
exceed 8x the total base compensation of an
Executive Team member, and 10x for the CEO.
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
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144
22 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.
Partners Group campus | Denver, USA
Exhibit 16: 2024 Minimum shareholding
guidelines
CEO
6.0x
USD 1'000
USD 6‘000
Executive Team
3.0x
Example: CHF 500
Example: CHF 1'500
Function
Multiple of base salary
Cash base salary
(in thousands)
Minimum shareholding
requirement
(in thousands)
Of the Executive Team's ten members, six
members were found to be compliant with the
minimum shareholding guidelines. Wolf-Henning
Scheider, Joris Gröflin, Michael Marquardt were
not compliant yet, as well as Kirsta Anderson
who rolled out of the Executive Team in 2024.
Wolf-Henning Scheider, Joris Gröflin and
Michael Marquardt have 5 years from their year
of appointment 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 2024 are
shown in Exhibit 18.
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. 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 2024,
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 (2023: no loans were outstanding).
2.8. Employee contracts
(audited)
In the event of an Executive Team member's
departure, their compensation is governed by
standard terms without special provisions, such
as severance payments, "golden parachutes," or
accelerated vesting periods for stock, options
(SPP), MPP, or MCP (with the exception of
accelerated vesting in case of retirement).
Individual settlements will always be subject to
the review and approval of the NCC.
In 2023, an early vesting exception was granted
to a departing Executive Team member for the
shares awarded under Partners Groups SPP
with no additional cash payment. In 2024, a
similar early vesting exception was granted to a
departing Executive Team member for shares
awarded under Partners Groups SPP.
For avoidance of doubt, no further exceptions
were granted to current Executive Team
members during 2024.
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 MCP, whereby a percentage of the
potential future performance fees from
investments is allocated to senior professionals
as well as the Executive Team. The MCP was
designed as a long-term incentive plan which
aligns the rewards for the firm's professionals
with investment performance and the firm's
overall financial success.
For the years 2014 until 2017, under the
Ordinance against Excessive Compensation in
listed joint stock companies (OaEC) issued by
the Swiss Federal council, shareholders
expressed a binding vote on the MCP budgets of
the Board of Directors and Executive Team. As
of 31 December 2024, 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 2024
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.
Compensation Report
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145
Exhibit 17: Composition of the 2024 Executive
Team and function of its members
David Layton
2005
American
1981
Chief Executive Officer
Sarah Brewer
2008
British
1983
Clients
Co-Head Client Solutions
Roberto Cagnati
2004 Swiss/Italian
1978
Clients
Chief Risk Officer, Head
Portfolio Solutions
Joris Gröflin
2024
Swiss/
Dutch
1977
Finance
Chief Financial Officer
Juri Jenkner
2004
German
1975
Investments
President
Andreas Knecht
2009
Swiss
1969
Operations
Chief Operating Officer, Group
General Counsel, and Head
Legal & Compliance
Michael Marquardt
2024
American
1970
Head of Business Services
Esther Peiner
2015
German
1980
Head of Private Infrastructure
Wolf-Henning Scheider
2023
German
1962
Investments
Head Private Equity
Executive Team members until 31 January 2024
Kirsta Anderson
2020
American
1979
Chief People Officer
Name
Joined Partners
Group in
Nationality
Birth year
Pillar (Co)-
Leadership
Position
As of 1 January 2024, Juri Jenkner, Partner, took
on the newly created role of President of
Partners Group and Esther Peiner, Partner,
became Head of Private Infrastructure, and
joined the Executive Team, based in Zug. Lastly,
Joris Gröflin joined the firm as Partner and Chief
Financial Officer as well as member of the
Executive Team.
As of 31 January 2024, Kirsta Anderson, Partner
and Chief People Officer, transitioned into an
Advisory Partner function and rotated out of the
Executive Team.
As of 12 July 2024, Partners Group has
appointed Michael Marquardt, Partner and Head
Business Services, to the firm's Executive Team
with immediate effect. Michael joined Partners
Group from IQ-EQ, where he served as Regional
CEO for Asia.
As of 1 January 2025, Michael Marquardt
became Chief Operation Officer of Partners
Group Holding AG, taking over from Andreas
Knecht. Andreas Knecht retained his role as
Group General Counsel, and both will remain on
the Executive Team. Furthermore, Sarah Brewer
became the sole head of the Client Solutions
business department.
2.11. External Board mandates
(audited)
Information on the roles assumed by Executive
Team members in other companies can be
found starting on page 178 in the corporate
governance report (in the annual report 2024).
The information takes into account the
requirements of the SIX directive on corporate
governance and those of the Swiss Code of
Obligations (Art. 734e CO).
2.12. Share and option
holdings by members of the
Executive Team (audited)
All share and option holdings of Executive Team
members below are as of 31 December 2024
and include holdings from related parties.23
Compensation Report
Annual Report 2024
146
23 "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.
Partners Group campus | Baar-Zug, Switzerland
Exhibit 18: Share and option holdings by the
Executive Team (31 December 2024 and 31
December 2023) (audited)
Number of shares Non-vested shares
Related party
share holding
Options
Number of shares Non-vested shares
Related party
share holding
Options
David Layton
6'382
11'456
25'687
10'691
7'552
20'969
Sarah Brewer
163
2'942
22'891
2'919
2'670
35'182
Roberto Cagnati
1'889
2'003
12
17'739
1'663
2'229
12
25'252
Joris Gröflin
1'000
35
3'725
Juri Jenkner
10'153
4'342
100
15'414
12'051
4'725
100
8'935
Andreas Knecht
8'941
2'670
13'433
9'128
3'609
13'335
Michael Marquardt
29
3'240
Esther Peiner
4'996
759
8'563
Wolf-Henning Scheider
332
1'200
12'575
332
9'335
Total Executive Team
33'856
25'436
112
123'267
36'784
20'785
112
113'008
Kirsta Anderson
533
Total including former Executive Team members24
33'856
25'436
112
123'267
37'317
20'785
112
113'008
Executive Team
2024
2023
Compensation Report
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147
24 Former members until 31 January 2024.
2.13. Executive Team compensation (audited)
Exhibit 19: Executive Team compensation for the full year 2024 (audited)
David Layton, Chief
Executive Officer
881
881
288
2'049
3'001
3'000
8'806
16'857
Total Executive
Team31
5'489
5'489
1'235
12'212
14'080
14'075
29'354
69'721
Former members of
the Executive Team32
30
30
9
70
—
—
0
70
Total Executive Team
incl. former members
5'519
5'519
1'244
12'282
14'080
14'075
29'354
69'791
In thousands of Swiss
francs
2024
Cash base
salary
Deferred
cash payment
Other25
Subtotal cash
compensation26
LTI (SPP)27
LTI (MPP)28
MCP29
Total30
Exhibit 20: Executive Team compensation for the full year 2023 (audited)
David Layton, Chief
Executive Officer
899
899
136
1'933
2'525
2'525
0
6'983
Total Executive Team
4'467
4'467
911
9'846
9'476
9'475
0
28'797
Former members of
the Executive Team37
500
500
153
1'153
—
—
2'022
3'174
Total Executive Team
incl. former members
4'967
4'967
1'064
10'999
9'476
9'475
2'022
31'971
In thousands of Swiss
francs
2023
Cash base
salary
Deferred
cash payment
Other33
Subtotal cash
compensation
LTI (SPP)
LTI (MPP)34
MCP35
Total36
Compensation Report
Annual Report 2024
148
25 Other compensation includes payments by Partners Group for pension and other benefits such as social security payments.
26 At the AGM in May 2023, shareholders approved a revised maximum total short-term cash compensation budget of CHF 13.00 million for the Executive Team for the fiscal year 2024. 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 2024 for the Executive Team amounted to CHF 11.57 million, including newly appointed Executive Team members who joined during the fiscal year 2024. The amount awarded to Executive Team during 2024 did not exceed the short-term compensation approved by shareholders at the AGM in May 2023.
27 In 2024, SPP recipients were given the choice between receiving their SPP grant in the form of shares or options, or a mix of shares and options. Of the total 2024 SPP grant of CHF 14'080 thousand, CHF 8'576 thousand was granted in the form of options (55'555 options) and CHF 5'504 thousand in the form of shares (4'400 shares) . For further information
please refer to note 2.2. of the notes to the consolidated financial statements.
28 The valuation of MPP is outlined in the notes to the consolidated financial statement for the year 2024 (note 2.2.4. of the notes to the consolidated financial statements).
29 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 2024. The carry pool allocation above assumed an expected payout range from CHF 0 to CHF 35.9 million (cap at 1.20x) and used CHF 29.9 million as a base scenario for
illustrative purposes. Amounts disclosed average exchange rate USD/CHF for the year 2024. The values used in the table represent the ExMCP 2024 allocation in 2024 which is a performance fee-related compensation program, whereby a percentage of the potential future performance fees from investments is allocated to the Executive Team (see note 1.3.3
for more details).
30 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 69'905 thousand,
including CHF 114 thousand of waived fees. The total compensation of David Layton amounts to CHF 16'884 thousand, including CHF 28 thousand of waived fees.
31 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.
32 As of 31 January 2024, Kirsta Anderson, Partner and Chief People Officer, transitioned into an Advisory Partner function and rotated out of the Executive Team.
33 Other compensation includes payments by Partners Group for pension and other benefits such as social security payments.
34 The valuation of Management Performance Plan (MPP) is outlined in the notes to the consolidated financial statement for the year 2023 (note 2.2.4. to the 2023 consolidated financial statements).
35 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.
36 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 the 2023 Compensation 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.
37 Hans Ploos van Amstel, CFO and Marlis Morin, Head of Client Services: members until 30 June 2023.
3. Board of Directors
Partners Group's Board of Directors is entrusted
with the ultimate responsibility for Partners
Group's strategy and development. The Board
applies the same "entrepreneurial governance"
approach to its own firm as Partners Group
applies to its portfolio companies.
The Board consists of four executive Board
members - the Executive Chairman and the
three founders - and three 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 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,
contribution, and time allocated to their Board
mandates.
3.1. Compensation guidelines
The compensation of the executive members of
the Board of Directors was set as follows: the
cash base salary is fixed at CHF 0.30 million p.a.
LTI allocation changes for the executive
members of the Board follow those of the
Executive Team and increased by 23% to 1.23x
the amount granted in 2023. In addition,
executive members of the Board were granted
an additional CHF 5 million equity-based LTI
award following the compensation review of
executives, as explained in section 1.3.3.
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
21. 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 shares38 delivered
in one installment during the respective board
period. Independent Board members do not
receive LTI or pension benefits.
Compensation Report
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149
38 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.
Partners Group office | London, UK
Exhibit 21: Compensation framework:
independent Board members
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, OOC39
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
Additional Board meetings, including the preparation of meeting materials;
other additional meetings; regular calls; and team interaction
Chair: chaired by
executive member
Member: +100’000
CRT
Additional Board meetings, including the preparation of meeting materials;
other additional meetings; regular calls; and team interaction
Chair: chaired by
executive member
Member: +50’000
Larger
subsidiary
PG board
Board meetings, including standard board work, offsites; and other Board-
related work
Member: +50’000
Ad hoc Board
committee
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 around 10%
time allocation +100’000
Waived fees
Consistent with industry standards, independent Board members may also
invest into Partners Group's investment programs on a no-management fee
and no-performance fee basis. Waived fees claimed are shown further in
the full-year 2024 Board compensation table.
RAC: Risk & Audit Committee, NCC: Nomination & Compensation Committee, OOC: Operations Oversight Committee, IOC:
Investment Oversight Committee, COC: Client Oversight Committee, CRT: Crisis Response Team
Description
Compensation (in CHF)
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. 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 0.3 million (2023: CHF 0.3
million). He received the same equity-based LTI
compensation factor as the overall Executive
Team (1.23x) and was granted MPP amounting
to CHF 1.97 million (2023: CHF 1.60 million).
Additionally, he was granted CHF1.67 million
MPP, 33% of the total additional grant for
executive Board members, following the
compensation review of executives, as
explained in section 1.3.3. This brings his total
compensation to CHF 4.0 million (2023: CHF 2.0
million), including pension benefits as outlined in
Exhibit 23.
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
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 (2023: CHF 0.30
million). With regard to their equity-based LTI
allocation, each member was awarded an MPP
grant of CHF 1.31 million (2023: CHF 1.07 million).
This represents the same compensation factor
(1.23x) as the overall Executive Team and the
Executive Chairman of the Board. Additionally,
they were granted CHF 1.11 million MPP each,
representing 22% of the total additional MPP
grant each, following the compensation review
of executives as explained in section 1.3.3. This
Compensation Report
Annual Report 2024
150
39 The Operational Oversight Committee (OOC) is led by an Independent Board member.
brings the total compensation of Dr. Marcel Erni,
Alfred Gantner and Urs Wietlisbach to CHF 2.8
million (2023: CHF1.4million) each, including
pension benefits and waived fees, as outlined in
Exhibit 23.
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,
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 2024).
In 2024 following Dr. Strobel’s decision not to
stand for re-election, the Board consisted of four
executive and three independent members.
Partners Group’s Board is committed to best
practices in corporate governance and aims to
have at least half of its members considered
independent. An additional independent Board
member is expected to be nominated ahead of
the AGM in 2025.
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, CHF 0.05 million for
her work on the US local board and CHF
0.05 million for being a member of the NCC.
This brings her total compensation to CHF
0.40 million, including other compensation
such as social security costs in relation to her
board fees.
•
Gaëlle Olivier was paid a base Board fee of
CHF 0.10 million. She additionally received
CHF 0.15 million for being the chair of the
Risk & Audit Committee , CHF 0.10 million for
being the chair of the Operational Oversight
Committee, CHF 0.05 million for her work on
the UK local board and CHF 0.05 million for
being a member of the NCC. This brings her
total compensation to CHF 0.45 million,
including other compensation such as social
security costs in relation to her board fees.
•
Dr. Martin Strobel acted as Vice Chairman
and Lead Independent Director and was paid
for his mandate until 21 May 2024. Martin
Strobel's total prorated compensation
amounts to CHF 0.27 million, including other
compensation such as social security costs
in relation to her board fees.
•
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 each for being a member of
the Risk & Audit Committee as well as the
Investment Oversight Committee. In addition,
Ms. Zhao received CHF 0.05 million for her
role on the Singapore Board. This brings her
total compensation to CHF 0.48 million,
including other compensation such as social
security costs in relation to her board fees.
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 2024, 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
2023: 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
2023 and 2024.
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 parties40 mentioned below are as of
31 December 2024.
Compensation Report
Annual Report 2024
151
40 "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.
Exhibit 22: Share and option holdings by
members of the Board of Directors
Number of
shares
Non-vested
shares
Related party
share holding
Options
Number of
shares
Non-vested
shares
Related party
share holding
Options
Steffen Meister,
Executive Chairman
354'456
351'775
Dr. Marcel Erni
1'341'483
215
1'339'694
Alfred Gantner and
family members41
1'341'506
1'339'689
Anne Lester
477
347
Gaëlle Olivier
315
135
Urs Wietlisbach
1'355'083
1'997
1'353'294
1'197
Flora Zhao
500
320
Total Board of
Directors
4'393'820
2'212
4'385'254
1'197
Dr. Martin Strobel,
Vice Chairman42
923
4'570
Total including
former Board of
Directors members
4'393'820
2'212
4'386'177
1'197
4'570
Board of Directors
2024
2023
3.8. External Board mandates
(audited)
Information on the roles assumed by Board of
Directors in other companies can be found in the
respective CVs starting on page 163 in the
corporate governance report (in this annual
report 2024) .
The information takes into account the
requirements of the SIX directive on corporate
governance and those of the Swiss
Code of Obligations (Art. 734e CO).
Compensation Report
Annual Report 2024
152
41 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
42 Former member until 22 May 2024.
Partners Group campus I Baar-Zug, Switzerland
3.9. Board compensation (audited)
Exhibit 23: Board compensation for the full year 2024 (audited)
Steffen Meister, Executive Chairman
300
—
50
350
3'636
3'987
Dr. Marcel Erni
300
—
52
352
2'421
2'773
Alfred Gantner
300
—
53
353
2'421
2'773
Anne Lester
200
163
41
403
0
403
Gaëlle Olivier
225
225
—
450
0
450
Urs Wietlisbach
300
—
53
353
2'421
2'773
Flora Zhao
225
225
29
479
0
479
Total Board of Directors
1'850
613
277
2'740
10'898
13'638
Dr. Martin Strobel, Vice Chairman47
126
128
19
273
0
273
Total Board of Directors incl. former
members
1'976
741
296
3'013
10'898
13'911
In thousands of Swiss francs
2024
Cash
Shares
Other43
Subtotal
cash and share
compensation44
MPP45
Total46
Exhibit 24: Board compensation for the full year 2023 (audited)
Steffen Meister, Executive Chairman
300
—
53
353
1'600
1'953
Dr. Martin Strobel, Vice Chairman
325
326
41
692
0
692
Dr. Marcel Erni
300
—
59
359
1'065
1'424
Alfred Gantner
300
—
59
359
1'065
1'424
Anne Lester
175
175
—
350
0
350
Gaëlle Olivier52
150
151
18
319
0
319
Urs Wietlisbach
300
—
59
359
1'065
1'424
Flora Zhao
175
175
23
373
0
373
Total Board of Directors
2'025
827
313
3'165
4'795
7'960
Joseph P. Landy53
59
60
—
119
0
119
Total Board of Directors incl. former
members
2'084
888
313
3'285
4'795
8'080
In thousands of Swiss francs
2023
Cash
Shares
Other48
Subtotal
cash and share
compensation49
MPP50
Total51
Compensation Report
Annual Report 2024
153
43 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 other compensation to the remaining independent members of the Board exclusively represents social security costs in
relation to their board fees. Depending on country of residence, board members can be exempt from such social security payments in Switzerland.
44 At the AGM in May 2024, 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 2025. 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 136 thousand, received in 2024 was in aggregate below the approved compensation budget.
45 The valuation of MPP is outlined in the notes to the consolidated financial statement for the year 2024 (note 2.2.4. of the notes to the consolidated financial statements). The MPP value is inclusive of the additional MPP following the executive compensation review described under section 1.3.3. For Steffen Meister, an additional CHF 1.67 million and for Dr
Marcel Erni, Alfred Gantner and Urs Wietlisbach all three received an additional CHF 1.11 million of MPP each, on top of the MPP calculated with the same compensation factor used for equity-based LTI of the Executive Team.
46 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 CHF30'544
thousand, including CHF 16'632 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 4'079 thousand
•
Alfred Gantner: CHF6'123 thousand
•
Anne Lester: CHF 1 thousand
•
Gaëlle Olivier: CHF 10 thousand
•
Dr. Martin Strobel: CHF 6 thousand
•
Urs Wietlisbach: CHF 6'316 thousand
47 Board member until the Annual General Meeting of shareholders on 24 May 2024. Cash, share, and other compensation is prorated for the time served on the Board during the respective fiscal year.
48 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.
49 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.
50 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).
51 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 the 2023 Compensation 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
52 Board member effective from the Annual General Meeting of shareholders on 24 May 2023.
53 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.
Compensation Report
Annual Report 2024
154
Compensation Report
Annual Report 2024
155
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.
Group structure and shareholders
2.
Capital structure
3.
Board of Directors
4.
Executive Team
5.
Compensation, shareholdings, and loans
6.
Shareholders’ participation rights
7.
Changes of control and defense measures
8.
Auditors
9.
Information policy
10.
Quiet periods
11.
Non-applicability/negative disclosure
Annual Report 2024
156
Corporate
Governance
Report
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'.
Partners Group legal group structure
1
Formed for the purpose of purchasing, construction, maintenance or management of land and property (non-investment related)
2
Formed for the purpose of providing invoice handling, cash management, cost recharging and other related administrative services
3
Formed for the purpose of purchasing and holding pre-dominantly minority investments in real estate operating companies
4
Managed by Partners Group (Guernsey) Limited, its General Partner
Source: Partners Group, as of 31 December 2024. 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
Annual Report 2024
157
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 2024,
whereas the chart on this page provides an
illustration of the operational group structure as
of 31 December 2024. The composition of the
Executive Team changed throughout 2024.
Refer to section 4.1 (Members of the Executive
Team) for further details on Executive Team
changes. For more details on segment reporting
please refer to note 1.2. (Segment information)
to the consolidated financial statements for the
years ended 31 December 2024 and 2023 in the
Annual Report 2024.
Operational group structure (as of 31
December 2024)1
1.1.2. Listed companies belonging to
the Group
Partners Group Holding AG is a stock
corporation incorporated under Swiss law with
its registered office and headquarters at
Unternehmer-Park 3, 6340 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 2024 was CHF 32.8 billion. All other
group companies are privately held.
1.1.3. Non-listed companies
belonging to the Group
For detailed information on the non-listed
subsidiaries of Partners Group Holding AG as of
31 December 2024, including names, country of
incorporation, registered office, share capital,
and ownership interests, please see note 6
(Participations) to the financial statements of
Partners Group Holding AG in the Annual Report
2024.
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 holding over 3% of the shares
and voting rights of Partners Group Holding AG
as of 31 December 2024.
Significant shareholders (in %; as of
31 December 2024):
Urs Wietlisbach, Schindellegi, Switzerland
5.08%
Dr. Marcel Erni, Zug, Switzerland
5.02%
Alfred Gantner, Meggen, Switzerland, together
with family members2
5.02%
BlackRock, Inc., New York (NY), USA (Mother
Company)
5.02%
UBS Fund Management (Switzerland) AG
5.01%
As of 31 December 2024, Partners Group held
795'965 treasury shares, corresponding to
2.98% 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#/.
Corporate Governance Report
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158
1 Details on the organizational changes to senior management from 1 January 2025 can be found on page 165.
2 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
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
At the annual general meeting of shareholders
('Annual General Meeting') on 22 May 2024,
Partners Group's shareholders introduced a
capital band (Kapitalband). Under the capital
band, the Board of Directors of the company is
authorized to increase the share capital of the
company up to the amount of CHF 293'700 (the
upper limit). Capital reductions are not allowed
under the capital band.
The Board of Directors is authorized to
increase the share capital within the capital band
until 22 May 2029 once or several times and in
any amounts up to the upper limit of CHF
293'700. The capital increase(s) may be
effected by issuing up to 2'670'000 fully paid-in
registered shares with a par value of CHF 0.01
per share. If the share capital is increased from
conditional capital (see below), the upper limit of
the capital band increases accordingly. For
further details on the capital band (incl. the terms
and conditions of the capital increase and the
restriction or withdrawal of pre-emptive
subscription rights) please refer to Art. 3b of the
articles of association (available at
www.partnersgroup.com/
articlesofassociation).
As of 31 December 2024, 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 (Limitation on transferability, and nominee
registration) 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 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).
Partners Group has not issued (non-voting)
participation certificates (Partizipationsscheine).
2.5. Dividend-right certificates
Partners Group has not issued any dividend-
right certificates (Genussscheine).
2.6. 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
Corporate Governance Report
Annual Report 2024
159
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
agreements with such Nominees in relation to
disclosure requirements, representation of
shares, and exercise of voting rights.
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 2024, 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).
2.7. Bonds, convertible bonds,
and options
A summary of all bonds outstanding as of 31
December 2024 is listed below.
In June 2019, Partners Group issued a 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.
In June 2024, Partners Group issued two
corporate bonds. The firm raised CHF 200
million through a fixed-rate senior unsecured
bond (Tranche A) with a six-year tenor, a
coupon of 1.9%, and maturing on 7 June 2030
(ISIN: CH1346742930). Additionally, the firm
raised CHF 300 million through another fixed-
rate senior unsecured bond (Tranche B) with a
ten-year tenor, a coupon of 2.15%, and maturing
on 7 June 2034 (ISIN: CH1346742948).
The net proceeds from these bonds will be used
for general corporate purposes. The bonds are
issued in denominations of CHF 5,000 each and
are classified as senior unsecured debt without
the right to request physical delivery or
conversion into certificated securities. Please
see note 3.2.2. of the consolidated financial
statements in the Annual Report 2024 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 2024 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'.
As of 31 December 2024, the Board of Directors
consists of seven members: four executive
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160
Board members — the Executive Chairman and
the three founders — and three independent
Board members. All members were elected at
the Annual General Meeting 2024 for a one-year
tenure with the possibility of re-election. 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.
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 background
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: Anne
Lester, Gaëlle Olivier (ad-interim Lead
Independent Director), and Flora Zhao. The total
number of independent Board members
amounted to three as of 31 December 2024.
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 exercise any
official functions or hold a political post, nor do
they have any permanent management/
consultancy functions for significant domestic
and foreign interest groups.
Lead Independent Director
—
By deciding not to stand for re-election as a
member of the Board at the Annual General
Meeting on 22 May 2024, Dr. Martin Strobel
stepped down from the Board of Partners Group
Holding AG due to personal reasons. At the time
Corporate Governance Report
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161
he stepped down from the Board of Partners
Group Holding AG he also stepped down from
his other mandates within entities of the group.
The nomination of the regular Lead Independent
Director will be made in conjunction with the
replacement of Dr. Martin Strobel. In the
meantime, Gaëlle Olivier, as Chairwoman of the
Risk & Audit Committee, Operations Oversight
Committee, and conflict resolution board,
assumed this role ad-interim. Prior to the 2025
Annual General Meeting the Board is expected
to nominate and inform about the next Lead
Independent Director.
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Partners Group campus | Baar-Zug, Switzerland
Professional background and
education of each member of
the Board of Directors,
including their responsibilities
and other activities and
functions3,4
Steffen Meister, Chairman
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 Investment Oversight Committee and a member of
the Client Oversight Committee as well as of the
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 ETH, Switzerland.
•
External mandates (audited): Crossiety AG
(Chairman), FAIRTIQ AG (Member of the Board)
•
Other mandates: ETH Foundation's Board of
Trustees
Dr. Marcel Erni
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 Investment Oversight 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.
•
Partners Group-related mandates (incl. portfolio
companies): Alpha ABMD Holdco B.V. (Member of
Board)5, Telepass S.p.A. (Member of Board)
•
Other mandates: Verein Kompass
Alfred Gantner
Alfred Gantner 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 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
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.
•
External mandates (audited): PG3 AG
(Chairman), Hotel Guardavalsporz AG (Chairman),
Real North AG (Chairman), North Colours AG
(Member of Board), Community Climate Solutions
AG (Chairman), Real North America Inc (President)
•
Partners Group-related mandates (incl. portfolio
companies): Esentia Energy Systems (Member of
Board), Climeworks AG (Member of Board),
Breitling SA (Chairman)
•
Other mandates: Verein Kompass, Second Mile
Stiftung
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3 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.
4 Information provided considers the requirements of the SIX directive on corporate governance and Swiss Code of Obligations (Art. 734e CO); underlined mandates are mandates added in 2024.
5 Ammega has been rebranded and now operates under the name Alpha ABMD Holdco B.V.
New mandates
Anne Lester
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.
•
Partners Group-related mandates (incl. portfolio
companies): Board of Partners Group's US entity
(Member of Board)
•
Other mandates: Human Interest Advisors LLC
Gaëlle Olivier
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,
the Chairwoman of the Risk & Audit Committee, and a
member of the Nomination & Compensation
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 20 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.
• External mandates (audited): Descartes
Underwriting (Member of Board), CED Europe
(Member of Board), Galytix (Member of Board)
• Partners Group-related mandates (incl. portfolio
companies): Version 1 (Member of Board), Board of
Partners Group's UK entity (Member of Board)
• Other mandates: SpVie, Ekimetrics
Urs Wietlisbach
Urs Wietlisbach 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 the
Chairman of the Client Oversight 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.
•
External mandate (audited): Blue Earth Capital
(Chairman), Blue Earth Foundation (Chairman),
Entrepreneur Partners AG (Member of Board),
PG3 AG (Member of Board), LGT Private Equity
Advisers AG (Member of Board), WieRe AG
(Chairman), Power Source Holding AG (Member of
Board)
•
Partners Group-related mandates (incl. portfolio
companies): KR Group (Board observer)
•
Other mandates: HSG Stiftung, IWAI Leadership
Council, Verein Kompass (Member of Board),
Ursimone Wietlisbach Foundation
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 as well as of the Risk & Audit 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.
•
External mandates (audited): Temasek
International Pte Ltd (Senior Advisor), Pavilion
Energy Ltd (Director)
•
Partners Group-related mandates (incl. portfolio
companies): Board of Partners Group's Singapore
entity, Supervisor of Partners Group's Shanghai entity
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Organizational changes to the Board of
Directors
—
Dr. Martin Strobel decided not to stand for re-
election to the Board at the Annual General
Meeting on 22 May 2024 for personal reasons.
Therefore, he has stepped down from the Board
of Partners Group Holding AG. For further
details on Dr. Martin Strobel (professional
background, education, etc.), please refer to
page 161, in section 3.1 (Members of the Board of
Directors) of the Corporate Governance Report
2023, included in the Annual Report 2023
(available at https://www.partnersgroup.com/
annual-report.pdf).
On 27 February 2025, Partners Group
announced the nomination of Urban Angehrn for
election as a new independent member of its
Board of Directors of Partners Group Holding
AG. The nomination will be proposed at the next
Annual General Meeting of shareholders on 21
May 2025. Mr. Angehrn has 30 years of
experience in the financial services sector. He
was most recently CEO of FINMA, Switzerland’s
financial markets supervisory authority, from
November 2021 to September 2023. From 2015
to 2021, he was a member of the Executive
Committee and Group Chief Investment Officer
of Zurich Insurance Group (“Zurich”). In this role,
he was responsible for Zurich’s entire
investment portfolio including operations,
digitization, and sustainability strategy. Through
his Board committee assignments, Mr. Angehrn
will contribute to Partners Group’s strategic
Board-level initiatives with a focus on insurance-
related growth initiatives, portfolio and risk
management, digitization and corporate
operations
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 of the
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 &
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Partners Group campus | Baar-Zug, Switzerland
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
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').
Partners Group’s Board Diversity Policy is
available to download on the website at
www.partnersgroup.com/policiesanddirectives.
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 composed 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.
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Partners Group campus | Baar-Zug, Switzerland
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 163 and 164
for the Board composition as well as section 3.1.
(Members of the Board of Directors) 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 2024, five formal
meetings were held (2023: four), which lasted
approximately four and a half hours on average,
except for one meeting that lasted about 15
minutes. 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 as well as some matters decided via circular
resolutions.
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:
•
Risk & Audit Committee;
•
Nomination & Compensation Committee;
•
Client Oversight Committee;
•
Operations Oversight Committee;
•
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 Chair. 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.
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Partners Group campus | Denver, USA
Board member tenure, diversity, expertise and, committee membership & attendance
Tenure & role
Joined Board in
20137
1997
1997
2022
2023
1997
2022
2019
Independent / Executive
Chairman &
Executive
Executive
Executive
Independent
Independent
Executive
Independent
Vice Chairman &
Independent
Diversity
Gender
Male
Male
Male
Female
Female
Male
Female
Male
Birth year
1970
1965
1968
1964
1971
1961
1965
1966
Nationality
Swiss
Swiss
Swiss
American
French
Swiss
Singaporean
Swiss/German
Expertise
prior to current
Board assignment8
Private markets industry know-how
x
x
x
x
x
x
C-level experience
x
x
x
x
x
x
Risk management
x
x
x
x
x
x
Broad international exposure
x
x
x
x
x
x
x
x
Investment experience
x
x
x
x
x
x
x
x
Operations
x
x
x
x
x
x
Technology/Cyber security
x
x
HR/Compensation
x
x
x
x
x
x
Chairmanship of Board committee
Board, IOC
-
-
-
OOC, RAC
COC
NCC
RAC
Membership &
attendance
Board
5/5
5/5
4/5
5/5
5/5
4/5
4/5
3/3
Risk & Audit Committee ('RAC')
n/a
n/a
n/a
5/5
5/5
n/a
3/39
2/2
Nomination & Compensation Committee ('NCC')
n/a
n/a
n/a
2/2
2/2
n/a
2/2
Operations Oversight Committee ('OOC')
4/4
n/a
n/a
n/a
4/4
n/a
n/a
2/2
Investment Oversight Committee ('IOC')
4/4
3/4
3/4
n/a
n/a
n/a
4/4
n/a
Client Oversight Committee ('COC')
7/7
n/a
n/a
7/7
n/a
7/7
n/a
n/a
Meeting attendance record
100%
89%
78%
100%
100%
92%
93%
100%
Steffen Meister
Dr. Marcel Erni
Alfred Gantner
Anne Lester
Gaëlle Olivier
Urs Wietlisbach
Flora Zhao
Dr. Martin Strobel6
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6 Dr. Martin Strobel retired from the Board after the 22 May 2024 Annual General Meeting for personal reasons. He served on the Board from 2019, including assignments as a member of the Risk & Audit Committee and the Investment Oversight Committee.
7 Steffen Meister also served on the Board from 2001 to 2005.
8 Experience is taken into account when the Board member is considered to have five years of experience, with the exception of international exposure and investment experience where the Board member must have ten years of experience.
9 Flora Zhao replaced Dr. Martin Strobel as member of the Risk & Audit Committee.
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 22 May 2024, the members of the
committee were Dr. Martin Strobel (Chairman),
Anne Lester, and Gaëlle Olivier. As of the Annual
General Meeting in 2024, the members of the
RAC are Gaëlle Olivier (Chairwoman), Anne
Lester, and Flora Zhao. The RAC held five formal
meetings in 2024 (2023: seven), which lasted
approximately three to three and a half hours on
average, except for one meeting that lasted
about 20 minutes. The firm's external auditors
attended all five meetings. 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.
Until 22 May 2024, the members of the NCC
were Flora Zhao (Chairwoman), Anne Lester,
and Dr. Martin Strobel. As of the Annual General
Meeting in 2024, the members of the NCC are
Flora Zhao (Chairwoman), Anne Lester, and
Gaëlle Olivier. The NCC held two formal
meetings in 2024 (2023: 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
(Chairman), 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 2024 (2023: seven), which lasted
approximately three 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
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169
interactions with management and employees
across the firm on key client-related matters or
projects.
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
(Chairwoman) and Steffen Meister. The OOC
held four formal meetings in 2024 (2023: one,
year of establishment), which lasted
approximately one and a half to two hours on
average. The chair may invite additional
participants to its meetings, who do not need to
be members of the Board of Directors. In
addition to the formal meetings, the OCC
engaged in considerable additional informal
meetings with management and employees on
operational and project-related matters.
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 environmental, social, and
governance ('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.
The members of the IOC are Steffen Meister
(Chairman), Dr. Marcel Erni, Alfred Gantner, and
Flora Zhao. Furthermore, Dr. Stephan Schäli,
Partners Group’s Chief Investment Officer
('CIO'), is a non-voting member of the
committee. The IOC held four meetings in 2024
(2023: four), which lasted approximately three
hours each. The meetings of the IOC were also
attended by 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 Board10 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 and circular
resolutions. In 2024, aggregate attendance
levels amounted to 92% and all Board members
attended 75% or more of the meetings, a
threshold viewed as best practice by
shareholders and proxy advisors.
Self-assessment
—
The Board of Directors conducts regular
feedback sessions in its official Board meetings.
The Board of Directors conducts an annual self-
evaluation at the end of each year. In this, the
Board self-assesses its efficiency and
effectiveness with regard to its statutory duties
and supervisory tasks. It also considers the
collaboration between Board members in
strategic, corporate development-related areas
as well as the effectiveness of its interaction
across sub-committees (IOC, COC, and OOC).
The Board further self-assesses its interaction
with the Executive Team on the firm's strategic
pillars and identifies development areas for the
upcoming year.
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
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170
10 On the condition that a Vice Chairman has been appointed for the current period.
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 of the
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:
1.
Direct management as well as continual
monitoring of business activities within the
scope of, and in line with, the regulations,
guidelines, competencies, individual
resolutions, and restrictions imposed by
the Board;
2.
Conclusion of transactions subject to
regulations, guidelines, competencies,
individual resolutions, and restrictions
imposed by the Board of Directors;
3.
Establishing subsidiaries and founding
new Group companies (branches);
4.
Developing and issuing directives, policies
and job descriptions for employees to the
extent that such tasks are not reserved for
the Board of Directors;
5.
Employment and termination of
employees;
6.
Initiating legal actions and concluding
settlements up to CHF million p.a. (CHF
500'000 per individual case);
7.
Organization, management, and
implementation of accounting, financial
planning, and reporting, including
preparation of the company’s
management report and annual financial
statements for the attention of the Board
of Directors;
8.
Preparation of the financial plan (budget)
for approval by the Board;
9.
Execution of the Board of Directors’
resolutions;
10.
Organizing, assisting, and coordinating the
employment benefit plans;
11.
Organizing insurance management;
12.
Organizing risk management as well as
implementing and monitoring the internal
control system and compliance;
13.
Informing the senior management of
relevant resolutions made by the Board of
Directors and the Executive Team;
14.
Proposals for all transactions that have to
be submitted to the Board of Directors;
15.
Exercising the company’s shareholder
rights as a shareholder within group
companies, including the entitlement to
vote on the composition of the members of
management, accepting the annual
financial statements, and matters related
to this.
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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 structure11
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
Investment Committees,
Investment Business Department
Heads & Investment Specialists 2)
Financial Risk Management
Operational Risk Management
Regulatory, Legal and
Conduct Risk Management
Investment Risk Management
Risk assessment and risk reporting by the Chief Risk Officer
The Executive Team submits decisions beyond
the scope of ordinary management or decisions
that carry major implications to the relevant
Board Committee or Board of Directors,
including (but not limited to) decisions
specifically reserved for the Chairman, the
relevant Board Committee, or Board of
Directors.
3.7.1. Risk governance
Partners Group identifies, assesses, manages,
and monitors risks on an aggregate basis for
relevant business activities across the
organization. Partners Group has put in place a
risk governance structure comprising the
following elements and related responsibilities:
3.7.1.1. Board
The Board of Directors of Partners Group
Holding AG is responsible for stipulating risk
management and governance principles in line
with its obligations under applicable laws, as
further defined in the ROOs.
3.7.1.2. Risk & Audit Committee
The RAC advises and supports the Board in the
area of audit and risk control, as described in
further detail in section 3.5 (Internal
organizational structure) above. The RAC has
the responsibility to review the risk profile of
Partners Group and to ensure that appropriate
processes regarding ongoing risk management
and audit are in place. It advises and evaluates
the effectiveness of group-wide financial
reporting, group-wide internal control systems,
and general risk monitoring. It 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, as
further defined in the ROOs). The IOC’s
responsibilities are described in further detail in
section 3.5 (Internal organizational structure)
above.
3.7.1.4. Crisis Response Team
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 Chairman, 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.
3.7.1.5. Group Internal Audit
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
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
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11 1) Specialists include the Chief Technology Officer, Chief Information Security Officer, etc. 2) Investment Specialists include the Chief Investment Officer, Chairman Global Investment Committee, etc.
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 RAC.
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.
3.7.1.8. Chief Risk Officer
To support the risk governance bodies set out
above, the Executive Team appoints the Chief
Risk Officer ('CRO'). The CRO’s responsibilities
are as follows:
•
Collecting, consolidating, and assessing risk
information from within the organization to
enable the 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.
3.8. Risk culture
Partners Group has a strong risk culture in line
with the purpose and values of the firm as
articulated in the Partners Group Charter. At the
core of Partners Group’s risk culture are the
following elements:
•
Good 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.
investment due diligence, ESG, portfolio
management, and semi-liquid products).
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Partners Group Risk Framework
Identification &
Assignment
Measurement &
Assessment
Reporting
Risk Themes
Enterprise
Risk
Taxonomy
Risk Categories
Risk Areas
Risk / Controls
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.
A key aspect of the ERT is the definition of Risk
Claims articulating the level and type of risks
Partners Group is willing to take in order to
achieve its strategic objectives. Risk Claims
shape the requisite controls and dictate risk
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.
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
collaborate and communicate effectively on an
ongoing basis.
Enterprise Risk Taxonomy
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
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
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Board of Directors
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.
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;
•
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 where they become
aware of material breaches of Risk Claims and
irregularities where these are not reported and
addressed by the respective Risk Owner.
3.9.3. Identification and designation
The identification of risks and the assessment of
their impact is an ongoing process to ensure all
material risks are known, well understood,
clearly assigned, and pro-actively managed
based on defined standards. The identification
of risks is assigned to the respective Risk
Category Owner and Risk Area Owner,
respectively, as further discussed above.
Upon the identification of a risk, the respective
Risk Category Owner assigns ownership and
approves the related Risk Claim.
3.9.4. Risk measurement and
management
Risk measurement and management is the
ongoing process involving both the respective
Risk Owner and Validation Owner, where
available, to ensure risks are monitored against
defined Key Risk Indicators and managed in
accordance with defined Risk Claims.
Where necessary, corrective measures (and
escalation) are pro-actively 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.
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.
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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).
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Partners Group campus | Denver, USA
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 2024 (unless indicated differently):
David Layton
2005
American
1981
Chief Executive Officer
Sarah Brewer
2008
British
1983
Clients
Co-Head Client Solutions
Roberto Cagnati
2004
Swiss/Italian
1978
Clients
Chief Risk Officer, Head Portfolio Solutions
Joris Gröflin
2024
Swiss/Dutch
1977
Finance
Chief Financial Officer
Juri Jenkner
2004
German
1975
Investments
President
Andreas Knecht
2009
Swiss
1969
Operations
Chief Operating Officer, Group General Counsel, and Head Compliance, Legal & Tax
Michael Marquardt
2024
American
1970
Head Business Services12
Esther Peiner
2015
German
1980
Head Private Infrastructure
Wolf-Henning Scheider
2023
German
1962
Investments
Head Private Equity
Name
Joined Partners
Group in
Nationality
Birth year
Pillar
(Co)-Leadership
Title/Position
4.1. Members of the Executive Team
As also outlined in section 3.6 (Definition of areas of responsibility) 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.
Corporate Governance Report
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12 See page 181 for further details.
Professional background and
education of each member of
the Executive Team, including
other activities and functions13
David Layton
Partner, Chief Executive Officer
David Layton 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 and Private Markets Relative
Value 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 Nobel Learning Communities,
MicroPoise Measurement Systems, Cabot Credit
Management, and Pacific Bells. 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.
Sarah Brewer
Partner, Co-Head Client Solutions
Sarah Brewer is Co-Head of the Client Solutions
business department, based in London. She co-leads
Partners Group's Clients Pillar and 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.
Roberto Cagnati
Partner, Chief Risk Officer, Head Portfolio Solutions
Roberto Cagnati 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 and is a member of the Executive Team,
the Global Executive Board as well as the Global
Portfolio 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.
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178
13 All titles are reflective of the Executive Team members’ roles and titles as of 31 December 2024.
Joris Gröflin
Partner, Chief Financial Officer
Joris Gröflin is Partners Group's Chief Financial
Officer, based in Zug. He leads the Finance
department and is a member of the Executive Team
and the Global Executive Board. He has been with
Partners Group since 2024 and has over 20 years of
industry experience. Prior to joining Partners Group, he
was Chief Financial Officer and Member of the
Executive Board at Axpo Holding AG (2019-2023). He
also worked in various roles at Rieter Holding AG
(2006-2011), including as Chief Financial Officer and
Member of the Group Executive Committee
(2011-2019), and held positions at Kearney
(2001-2006). He holds a licentiate and a CEMS
Master's degree in Business Administration from the
University of St. Gallen (2001).
Juri Jenkner
Partner, President
Juri Jenkner is the President of Partners Group, 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. Prior to becoming
President in 2024, he served as the Head of the Private
Infrastructure Business Department and previously as
Co-Head of the Private Debt Business Department. 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,
Switzerland. He is also a Certified European financial
analyst.
• Other mandates: Member of the Board of Directors
of the Swiss-American Chamber of Commerce
Andreas Knecht
Partner, Chief Operating Officer, Group General
Counsel, and Head Compliance, Legal & Tax
Andreas Knecht is the Chief Operating Officer and
General Counsel of Partners Group, based in Zug. He
leads the firm's Operations Pillar, is Head of the
Compliance, Legal & Tax 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.
Michael Marquardt
Partner, Head Business Services
Michael Marquardt is the Head of the Business
Services business department, based in Singapore. He
is a member of the Executive Team and leads the
Operations Pillar starting from 1 January 2025. He has
30 years of industry experience with large financial
services companies including IQ-EQ, from 2021 to
2024 where he was the Asia Regional CEO, and
BlackRock (2000-2017) where his final role was the
Asia-Pacific Chief Operating Officer (inclusive of his
time at Barclays Global Investors which was acquired
by BlackRock in 2009). He holds an MBA from Boston
University, Massachusetts, USA, and a Bachelor's
degree in economics from Clark University,
Massachusetts, USA.
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Esther Peiner
Partner, Head Private Infrastructure
Esther Peiner is the Head of the Private Infrastructure
business department, based in Zug. She is a member of
the Executive Team and Global Executive Board as
well as a member of the Private Infrastructure
Investment Committee. Esther is also a sponsor of the
Women's Network. Furthermore, she is a member of
the Board of Directors of the firm's portfolio companies
EOLO, atNorth, Lifelink, and CapeOmega. In addition,
she was responsible for the execution of the control
investments in German renewable developer VSB
(2020), UK/Irish interconnector developer Greenlink
(2019), Norwegian Gas Transportation Company
CapeOmega (2019), and German offshore wind farm
developer Merkur ( 2016). She has over 20 years of
industry experience. Prior to joining Partners Group,
she gained experience in investment banking with
Macquarie Capital (2003-2012) and Macquarie
Infrastructure and Real Assets (2012-2014). She holds
a Master's degree in finance and marketing from
Maastricht University, Netherlands.
Wolf-Henning Scheider
Partner, Head Private Equity
Wolf-Henning Scheider is Head of the Private Equity
business department, based in Zug. He is the Head of
the Private Equity Technology business unit and is a
member of the Executive Team as well as the Global
Executive Board. 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,
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.
• External mandates (audited): Member of the
Supervisory Board of Michelin Group
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180
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.
As of 1 January 2024, Juri Jenkner, Partner, took
on the newly created role of President of
Partners Group and Esther Peiner, Partner,
became Head of Private Infrastructure, and
joined the Executive Team, based in Zug. Lastly,
Joris Gröflin joined the firm as Partner and Chief
Financial Officer as well as member of the
Executive Team. .
As of 31 January 2024, Kirsta Anderson, Partner
and Chief People Officer, transitioned into an
Advisory Partner function and rotated out of the
Executive Team.
As of 12 July 2024, Partners Group has
appointed Michael Marquardt, Partner and Head
Business Services, to the firm's Executive Team
with immediate effect. Michael joined Partners
Group from IQ-EQ, where he served as Regional
CEO for Asia.
As of 1 January 2025, Michael Marquardt
became Chief Operation Officer of Partners
Group Holding AG, taking over from Andreas
Knecht. Andreas Knecht retained his role as
Group General Counsel, and both will remain on
the Executive Team. Furthermore, Sarah
Brewer became the sole head of the Client
Solutions business department.
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 (Members of the Executive Team) for
each respective member. None of the members
of the Executive Team hold permanent
management or consultancy functions for
important Swiss or foreign interest groups, and
none of the members have official functions or
hold political posts. None of the members of the
Executive Team have carried out tasks for
Partners Group prior to joining the firm.
4.3. Number of mandates
pursuant to the Swiss Code of
Obligations
In accordance with Art. 626 para. 2 item 1 of the
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 (Number of permitted
activities) 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 Senior Member of
Management, Member of Management as well
as senior managerial employees of different
departments/units and regions across the firm’s
offices globally.
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 2024 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. In the
Compensation Report, the firm outlines its
compensation principles, components, and
method. The Compensation Report can be
found in the Annual Report 2024 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
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Annual Report 2024
181
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 of the 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 2024 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
set forth in section 2.6 (Limitation on
transferability, and nominee registration). 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) by 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 2025, the annual general meeting of
shareholders is scheduled for 21 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
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
Corporate Governance Report
Annual Report 2024
182
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
(Shares and participation certificates) and 2.6
(Limitation on transferability, and nominee
registration). The qualifying date for the
registration of shares is defined by the Board of
Directors for every shareholders' meeting.
7. Changes of control and
defense measures
7.1. Opting out
Partners Group has elected to opt out of the rule
that an investor acquiring 33 1/3 % of all voting
rights has to submit a public offer for all
outstanding shares (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
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 2024. KPMG AG was first elected
statutory and group auditor on 21 November
2001. Due to the completion of the applicable
seven-year rotation interval, the former lead
auditor, Thomas Dorst, has been replaced by
Philipp Rickert, who is the new lead auditor since
the Annual General Meeting 2024. He will
remain in this position until the Annual General
Meeting 2025, where the Company proposes its
shareholders to elect PricewaterhouseCoopers
('PwC') as new statutory auditors.
8.2. Auditing fees
In the financial year 2024, KPMG AG and other
KPMG companies received a total of CHF 2.2
million (2023: CHF 2.3 million) for audit services.
8.3. Additional fees
In addition, KPMG AG and other KPMG
companies received CHF 0.2 million (2023: CHF
0.1 million) in fees for consulting services (tax,
regulatory, and International Financial Reporting
Standards) rendered to Partners Group and its
subsidiaries in the financial year 2024.
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 2024 financial year, the
external auditors (KPMG) participated in all five
meetings of the Risk & Audit Committee in order
to discuss audit processes as well as regulatory
guidelines and monitoring. Further, the incoming
external auditors (PwC) – that will take over the
auditor mandate next year, subject to election at
the 2025 Annual General Meeting – also
participated in three meetings of the Risk & Audit
Committee. Among others, the external auditors
were also involved in evaluating findings on risk
factors and processes.
Corporate Governance Report
Annual Report 2024
183
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 (Internal
organizational structure) 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 Annual General
Meeting for voting and ratification. The new
auditor will be the 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.
Partners Group’s Interim and Annual Reports
are available for download on the website at
www.partnersgroup.com/financialreports.
Key dates for 2025 are as follows:
Announcement of AuM as of 31 December 2024
14 January 2025
Publication of Financial Results as of 31 December 2025
11 March 2025
Capital Markets Day 2025
12 March 2025
Annual General Meeting of shareholders
21 May 2025
Ex-dividend date
23 May 2025
Dividend record date
26 May 2025
Dividend payment date
27 May 2025
Announcement of AuM as of 30 June 2025
15 July 2025
Publication of Interim Financial Results & Report as of 30 June 2025
2 September 2025
Event
Date
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 additionally or instead thereof
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 2024 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 2024 Annual Report.
Corporate Governance Report
Annual Report 2024
184
For all investor inquiries, Philip Sauer can be
reached as follows:
Philip Sauer
Unternehmer Park 3
6340 Baar-Zug
Switzerland
T: +41 41 784 66 60
Email: shareholders@partnersgroup.com
Headquarters:
Unternehmer-Park 3
6340 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
and trading restriction requirements. These
rules are designed to protect Partners Group
and its employees.
Partners Group employees may transact in
'PGH Securities' defined as: Partners Group
Holding AG listed shares ('PGHN') and
derivatives which are valued based on the price
of PGHN and listed debt instruments issued by
Partners Group Holding AG or any of its
subsidiaries.
Partners Group employees are permitted to
transact 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 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 2025:
Annual financial results
13 March - 25 May
Interim financial results
3 September - 18
November
Public announcement
Order Window
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 after the
end of the Order Window. After an Order
Window closes, no adjustments to orders are
permitted, including terminating the order.
During the reporting year 2024, all decisions
made by Partners Group employees in regard to
PGH Securities were made within the
prescribed Order Windows or in line with the
exception process per the Personal Account
Dealing Directive.
The Chairman or the Vice Chairman of the Board
together with the General Counsel or his deputy
have the authority to amend or terminate an
Order Window.
If Partners Group’s employees are in the
possession of price-sensitive, non-public
information in respect to PGH Securities due to
the work they perform, 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).
Corporate Governance Report
Annual Report 2024
185
Partners Group campus | Baar-Zug, Switzerland
Annual Report 2024
186
Contacts
Shareholder relations contact
shareholders@partnersgroup.com
Media relations contact
media@partnersgroup.com
www.partnersgroup.com/en/linkedin/
www.partnersgroup.com
Zug
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Switzerland
T +41 41 784 60 00
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The Exchange
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Broomfield, CO 80021
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T +44 1481 737 800
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Peninsula Corporate Park
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Mumbai-400013
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T +352 27 48 28 1
Manila
18/F Seven/NEO Building
5th Avenue Corner 26th Street
Bonifacio Global City, Taguig
Metro Manila 1634
Philippines
T + 632 8 804 7100
New York
The Grace Building
1114 Avenue of the Americas, 37th Floor
New York, NY 10036
USA
T+1 212 908 2600
Milan
Via della Moscova 3
20121 Milan
Italy
T +39 02 888 369 1
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
São Paulo
Rua Joaquim Floriano 1120, 11º andar
CEP 04534-004, São Paulo – SP
Brazil
T +55 11 3528 6500
Munich
Lenbachpalais
Lenbachplatz 3
80333 Munich
Germany
T +49 89 383 89 200
Hong Kong
George Room, 17F
Edinburgh Tower, The Landmark
15 Queen's Road Central
Hong Kong
T +852 3610 0408
Disclaimer
This report may not be reproduced,
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part, for any purpose. Failure to comply with this
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applicable securities laws. This report does not
constitute or form part of and should not be
construed as, an offer to sell or issue or the
solicitation of an offer to buy or acquire
securities of Partners Group Holding AG (the
"Company") in any jurisdiction or an inducement
to enter into investment activity. No part of this
report, nor the fact of its distribution, should form
the basis of, or be relied on in connection with,
any contract or commitment or investment
decision whatsoever. This report does not
constitute a prospectus or a similar
communication within the meaning of articles 35
et seqq. and 69 of the Swiss Federal Act on
Financial Services ("FinSA") or a listing
prospectus within the meaning of the listing
rules of the SIX Swiss Exchange.
Figures provided have been rounded for report
purposes and in certain instances rounding
anomalies may arise. The figures represented in
this report are as of 31 December 2024 (unless
otherwise indicated). The Company is not under
any obligation to update or keep current the
information contained herein. Accordingly, no
report or warranty or undertaking, express or
implied, is given by or on behalf of the Company
or any of their respective members, directors,
officers, agents or employees or any other
person as to, and no reliance should be placed
on, the accuracy, completeness or fairness of
the information or opinions contained herein.
Nothing herein shall be relied upon as a promise
or report as to past or future performance.
Neither the Company nor any of their respective
members, directors, officers or employees nor
any other person accepts any liability
whatsoever for any loss howsoever arising from
any use of this report or its contents or
otherwise arising in connection with the report.
This report includes forward-looking
statements, beliefs or opinions, including
statements with respect to plans, objectives,
goals, strategies, estimated market sizes and
opportunities which are based on current
beliefs, expectations and projections about
future events. The words "believe," "expect,"
"anticipate," "intends," "estimate," "forecast,"
"project," "will," "may," "should" and similar
expressions identify forward-looking
statements. The forward-looking statements in
this report are based upon various assumptions,
many of which are based, in turn, upon further
assumptions, including, without limitation,
management’s examination of data available
from third parties. Although the Company
believes that these assumptions were
reasonable when made, these assumptions are
inherently subject to significant uncertainties
and contingencies which are difficult or
impossible to predict and are beyond its control,
and the Company may not achieve or
accomplish these expectations, beliefs or
projections. Neither the Company nor any of its
members, directors, officers, agents, employees
or advisers intend or have any duty or obligation
to supplement, amend, update or revise any of
the forward-looking statements contained in this
report. The information and opinions contained
herein are provided as at the date of the report
and are subject to change without notice.