Partners Group reports strong half year

Swiss alternative assets fund of funds manager has almost tripled profits in the six months to the end of June, undistracted by its recent flotation, but cautions more modest growth to come.

Just five months after floating, Partners Group, a Swiss alternative asset manager set up by three ex-Goldman Sachs bankers, has almost tripled profits in the first half of the year.

The company, which manages private equity and hedge fund of funds, said net profits rose from Sfr 27m (€17m) in the six months to June 30, 2005 to Sfr 75m this half.

It has increased its assets under management by Sfr 2.9bn to Sfr 13.8bn, driven by an increase of Sfr 2.1bn in its private equity assets.

Hedge fund assets rose by Sfr 500m, with private debt and wealth management contributing the remaining Sfr 300m to the overall increase.

The company said it was optimistic about further development of assets under management in the second half of the year, but anticipates nominal growth to be “more in line with previous periods”. Overall, it expects “a very positive result for the 2006 financial year”.

It has closed four funds so far this year: it raised a €282m ($361m) global mezzanine fund in July, a €279m European buyout fund in June, and a $375m (€293m) Asian fund of funds along with another mezzanine fund in May.

The company floated in Switzerland in March.