Partners Group, a prominent player in the private equity sector based in Switzerland, has announced an impressive 8% increase in its 2024 dividend following a robust financial performance characterized by significant advancements in its exit pipeline in the latter half of the year. For the fiscal year ending December 31, 2024, Partners Group reported a remarkable profit of 1.13 billion francs, reflecting a 12% increase from the previous year's figure of 1 billion francs.
The company's EBITDA also saw substantial growth, rising to 1.36 billion francs from 1.23 billion francs, maintaining a strong EBITDA margin of 63.6%. The company's net revenue from management services surged to 2.02 billion francs, up from 1.86 billion francs. Additionally, total revenue reached 2.14 billion francs, boosted by a significant 38% hike in performance fees, which amounted to 510.5 million francs, constituting 24% of the group's total revenue.
"As exit markets recovered in the second half, we executed several key exits across our direct private equity and infrastructure portfolios, which contributed to a notable rise in performance fees," stated Joris Gröflin, the Chief Financial Officer. Highlighting the organization's positive trajectory, the board has proposed a dividend of 42 francs per share for 2024, an increase from 39 francs per share granted in the previous year.
Looking toward the future, Partners Group has reiterated its expectations that performance fees will comprise 20% to 30% of total revenue by 2025, and between 25% to 40% by 2026 as more direct investments come to fruition. The group is anticipating an inflow of new client assets ranging from $26 billion to $31 billion in 2025.
"As we move forward, we are aware of a USD 19 billion pipeline of direct assets that we anticipate realizing over the next 2-3 years. This insight boosts our confidence in our ability to generate performance fees that will constitute 25-40% of our revenues from 2026 onwards," Gröflin added. As of Tuesday morning, the company's shares were experiencing a nearly 1% increase in Zurich..