Partners Group reports 10% revenue growth, raises dividend

Investing.com - Partners Group (SIX:PGHN) on Tuesday reported a 10% increase in total revenues for 2024, driven by higher performance fees, and proposed an 8% dividend hike.

The Swiss private markets investment manager saw its stock rise 1.78% following the earnings release.

The company's total revenues climbed to CHF 2.136 billion in 2024, up from CHF 1.945 billion in the previous year. Performance fees surged 38% to CHF 511 million, accounting for 24% of total revenues, while management fees grew 3% to CHF 1.625 billion.

EBITDA rose 10% to CHF 1.357 billion, with the EBITDA margin remaining stable at 63.6%. Profit increased by 12% to CHF 1.128 billion. The company proposed a dividend of CHF 42.00 per share, up 8% YoY.

"We experienced significant progress in our exit pipeline in the second half of 2024, driven by the sale of direct assets," said David Layton, Partner and Chief Executive Officer. "This lifted full-year realizations by 53% YoY to USD 18 billion."

For 2025, Partners Group expects total new client assets of USD 26 to 31 billion, including USD 4 billion from the acquisition of Empira Group. The company reaffirmed its guidance for performance fees to account for 20-30% of total revenues in 2025 and 25-40% from 2026 onwards.

“PGHN will return to EBITDA margin as its key profit metric, partly driven by an increased focus on M&A. Given recent o/p, the shares may tread water until the CMD slides released,” Jefferies said in a note.