Partners Group Private Equity (PEY) has released its annual results for the year ended 31 December 2024, showing a solid NAV total return of 11.4%, driven largely by value creation within its portfolio of 12.8%. PEY’s share price total return for the year was 10.0%, ending 2024 with the shares trading at a 29% discount to NAV. The NAV per share stood at €15.03 as at year-end. Key contributors to performance included Vishal Mega Mart, SRS Distribution, and the International Schools Partnership. PEY paid a dividend of €0.71 per share, equivalent to 5% of 2023 year-end NAV, resulting in a 6.6% yield based on the year-end share price of €10.70.
Strong cash inflows and portfolio activity
Distributions for the year totalled €144m, with €93m stemming from the full exits of SRS and Civica. PY says that an improving IPO environment allowed for partial exits from Vishal and Galderma, generating a further €28m, while the remaining €23m came primarily from other direct investments.
On the investment side, PEY deployed €31m, with new allocations to ROSEN Group, Velvet Care, and FairJourney Biologics, alongside follow-on investments into existing portfolio companies. In early 2024, PEY increased its commitment to the Partners Group Direct Equity V fund by €20m, taking its total to €50m.
PEY ended the year with a strengthened liquidity position, having fully repaid its €140m revolving credit facility. €19m in cash and equivalents remained on the balance sheet.
Strategic progress and shareholder engagement
Chair Peter McKellar noted that 2024 was a year of “material progress” as PEY implemented previously announced changes, enhanced shareholder engagement, and improved both market communication and company branding. He also reiterated the board’s commitment to a robust capital allocation policy, centred around paying a dividend of 5% of year-end NAV and deploying surplus free cash flow for buybacks when the discount to NAV is material.
Looking ahead, McKellar acknowledged macroeconomic uncertainty, particularly political developments in the US, as a potential drag on growth and disinflation, but pointed to a potentially brighter outlook for global M&A and private equity exit activity. He emphasised the investment manager’s active sourcing strategy as key to sustaining NAV accretion and reiterated the board’s focus on performance and discount narrowing. He added: “I would like to thank shareholders for their continued support and to remind existing and potential shareholders, as well as market participants, that I am available to meet and I enjoy interacting and discussing the Company, its peers and the broader private equity market.”
Capital allocation policy reaffirmed
Originally announced in March 2024, PEY says that its capital allocation policy continues to be viewed as progressive and sector-leading. It adds that its focus remains on maintaining the 5% dividend target and enhancing NAV through opportunistic share buybacks. With distributions expected to continue, the board anticipates that surplus free cash flow for buybacks will materialise in the coming year.
