Partners Group (OTCPK:PGPH.F) Update / briefing Transcript

Summary of Partners Group Conference Call (January 14, 2026) Company Overview - Company: Partners Group (OTCPK: PGPH.F) - Date: January 14, 2026 - Context: Announcement of Assets Under Management (AUM) as of December 31, 2025 Key Points Industry and Market Environment - The investment environment in 2025 was characterized by macroeconomic uncertainty and geopolitical instability, yet Partners Group managed to grow its AUM by 21% overall [2][4] - The industry remains below peak levels, with a bifurcation between successful firms and those struggling [4] Financial Performance - AUM Growth: Increased by 21%, adding $30.2 billion in total new assets, exceeding the guidance of $26-$31 billion [2][26] - Fundraising: Achieved $26 billion in fundraising, marking the highest year for new client demand in the company's history, a 22% increase from the previous year [2][15] - Investment Deployment: Deployed $27 billion in 2025, a 26% increase year-over-year [3][11] - Realizations: Realizations were up 47%, primarily from pre-2022 vintages, with an average premium at exit [3][5] Investment Strategy - Partners Group positions itself as a leading provider of portfolio solutions in private markets, with bespoke solutions contributing 72% of inflows [3][4] - The company has a strong thematic pipeline, particularly in infrastructure, digitization, and energy transition platforms [11][12] - Notable investments include: - Infinity Fincorp Solutions: Customized secured loans in India, benefiting from economic growth and digitization [12] - Life Cycle Power: Mobile power generation solutions in the US, capitalizing on increased data center power demand [13] - Royalties Business: Investment in a royalty spec note for The Weeknd, diversifying cash flows across sectors [13] Performance Fees and Guidance - Performance fees for 2025 are expected to exceed 30% of revenue, with a pull-forward effect from transactions like PCI Pharma Services [8][9] - For 2026, performance fee expectations are set between 25%-40% of revenues, with a cautious outlook due to the pull-forward effect [9][29] - The company anticipates $26 billion to $32 billion in new assets for 2026, reflecting strong fundraising momentum [29] Evergreen Platform and Private Wealth - The Evergreen platform saw inflows of $9.4 billion, a 12% year-on-year increase, with 59% of total inflows coming from new funds [18][19] - Redemption levels increased to 11% in 2025, consistent with a maturing market, but are expected to be offset by NAV growth [20][21] Strategic Partnerships - The company is focused on building strategic relationships with large institutions and expanding its mandate offerings, particularly in Asia and the Middle East [29] - A partnership with Deutsche Bank aims to create a flagship private markets offering for over 20 million clients [24][25] Future Outlook - The company is well-positioned to navigate a complex environment in 2026, with a focus on expanding its diversified Evergreen platform and capturing new client segments [29][30] - Anticipated tail-downs for 2026 are estimated at $10-$13 billion, driven by close-ended traditional funds [30] Additional Insights - The company emphasizes the importance of customization in its offerings, particularly in response to the evolving needs of private wealth clients [19][20] - The performance of Evergreen funds is influenced by vintage share exposure, with newer funds showing strong returns [22][23] This summary encapsulates the key points discussed during the Partners Group conference call, highlighting the company's performance, strategic initiatives, and outlook for the future.