RE continues to boost Partners Group growth

The quoted Swiss alternative asset manager saw its private markets business, including real estate and private equity, grow by $3.4bn over the past year. However foreign exchange and hedge fund outflows hit the overall increase in assets under management in its pre-close statement.

The global alternative asset manager, Partners Group, has seen its estimated assets under management rise by CHF 1.0 billion ($974 million; €621 million) to CHF 25.4 billion, compared to 12 months ago.

Overall direct asset growth, including new assets raised and changes to existing investment programmes, amounted to CHF 3.8 billion, according to a statement from the Baar-Zug, Switzerland-based firm.

Partners Group’s private markets business lines, which include private real estate, private equity and private debt, have enjoyed sustained demand with direct asset growth of CHF 3.5 billion, corresponding to an annualized growth of 39 percent.

The firm said the increase reflected the continued “shift” by investors towards private market allocations, with investors putting emphasis on investments in Asia-Pacific, secondary and mezzanine opportuntiies and European small and mid cap buyout investments.

Partners' chief strategist for private equity real estate, Nori Gerardo Lietz, recently told delegates at the PERE Forum: Europe 2008 conferencde that investors were increasingly looking to invest in specialized regional funds as opposed to “global” investment strategies. She also added that although capital continued to flow into the opportunistic sector, a tail-off was to be expected. Asia Pacific and emerging markets would get a “disproportionate” amount of the capital flow, she insisted.

however Partners' net asset growth was temporarily slowed by CHF 1.4 billion owing to adverse foreign exchange developments and, to a lesser extent, negative performance effects in the liquid strategies and redemptions of CHF 1.4 billion in its hedge fund business.

Partners Group is in the process of redefining its hedge fund strategy, it said in the statement.