Annual Report 2020 - Partners Group

1 Annual Report 2020As of 31 December 2020 Christina Han Head Investment Research | Patrick Xin Du Private EquityPARTNERS Group Annual Report 2020 Contents Key figures 4 Message from the Chairman and the Co-CEOs 62020 at a glance Partners Group s business model and review of financial performance Investments 9 Clients 15 Financials 19 Appendix 26 Key definitions and alternative performance metrics (APM) 28 Consolidated financial statements 30 Financial statements of Partners Group Holding AG 102 Compensation Report 118 Corporate Governance Report 143 Contacts 174 Partners Group | 3 Annual Report 2020As in the past, the breadth and clear strategic direction of our platform has enabled us to successfully navigate through these challenging times, reflected in a robust set of 2020 financials.

2 Our transformational approach to investment and our entrepreneurial approach to governance remain at the core of our activities, enabling us to generate superior returns and look ahead with , combined with the dedication of our employees and the trust of our clients, business Partners and shareholders , positions us well to continue to create lasting, positive impact for all our stakeholders, irrespective of the economic | Partners Group Annual Report 20201'53320 USD 109 billionCHF 1'41 2 millionCHF 875 millionCHF 2 7. 5 0 per shareCHF 805 million1 . 51%Total AuM3)(in USD bn) of professionals201720182019202020162015201 41'0361'2031'4641'533930840746 Share price development since IPO5)200820062010201220142016201820201'6 00%1'400%1'200%1'000%800%600%400%200%0%- 200% Partners Group +1'551%Bloomberg European Financial Index-57%Profit4)(in CHF m)20172018201920202016201520147527699008 05558396336professionalsoffices around the worldassets under managementrevenues1)EBIT profitproposed dividendrevenue margin1), 2)Key figures1) Revenues from management services, net, and other operating income.

3 2) Based on average AuM of CHF billion in 2020 (2019: CHF billion), calculated on a daily basis. 3) Assets under management exclude discontinued public alternative investment activities and divested affiliated companies. 4) Partners Group adjusted its profit for specific non-cash items related to the capital-protected product Pearl Holding Limited until 2014; the successful conversion of Pearl in September 2014 has consequently made Partners Group s adjusted net profit equal to its IFRS profit from 2015 onwards. 5 ) As of 31 December 2020. Partners Group | 5 Annual Report 2020 Annual Report 2020 Key performance indicators20192020 Assets under management as of the end of the year (in USD bn) margin1),2) (in CHF m)2) 1'6101'412 EBIT margin63%62%EBIT (in CHF m)1'0 08875 Financial result (in CHF m)3053 Profit (in CHF m) 900805 Net cash position at end of year (in CHF m)3) 1'0351'102 shareholders equity (in CHF m)2'2882'275 return on shareholders equity (ROE)42%35%Equity ratio58%56%1) Based on average AuM of CHF billion in 2020 (2019: CHF billion), calculated on a daily basis.

4 2) Revenues from management services, net, including other operating income. 3) Comprises cash & cash equivalents and short-term loans for investment programs provided by the firm, net of long-term information as of 31 December 2020 Share price (in CHF) 1' shares 26'700'000 Market capitalization (in CHF bn) 27. 8 Free float1) shares (weighted average)26'505'234 Diluted earnings per share (in CHF) per share (in CHF)2)27. 5 0 Dividend yield per share3) ticker symbol PGHN SWReuters ticker symbol ) According to the SIX Swiss Exchange definition. 2) As per proposal to be submitted to the next ordinary Annual General Meeting of shareholders on 12 May 2021. 3) Yield as of 31 December calendar12 May 2021 Annual General Meeting of shareholders17 May 2021Ex-dividend date18 May 2021 Dividend record date19 May 2021 Dividend payment date15 July 2021 Assets under management announcement as of 30 June 20217 September 2021 Publication of Interim Report as of 30 June 2021 Key figures6 | Partners Group Annual Report 2020 Message from the Chairman and the Co-CEOsDear clients, business Partners and fellow shareholders ,We start this letter by acknowledging the unprecedented events of the past year, precipitated by the outbreak of the COVID-19 pandemic.

5 Safeguarding the health and safety of our employees, and those of our portfolio companies, was our first priority in 2020. In parallel, we drove forward performance in our investments for the benefit of our clients. With double-digit EBITDA growth across our direct private equity portfolio, we are proud to Report strong portfolio performance last year. The foundations for portfolio stability were laid by our emphasis on thematic sourcing coupled with our disciplined asset selection and value creation the end of the year 2020 markets turned more active and our investment activity has increased again considerably. As we transition into 2021, our transformational approach to investment and our entrepreneurial approach to governance remain at the core of our activities.

6 This gives us confidence that with our investment strategy we are well positioned to continue to grow and provide our clients with sustainable returns. Continued strong demand for our private markets solutionsDespite the challenging environment in 2020, our business model has proven to be resilient amid the economic headwinds caused by the pandemic. Clients around the globe entrusted us with USD 16 billion in new commitments. We saw strong demand across all asset classes and program types, from customized mandates and our extensive range of evergreen fund solutions, to traditional closed-ended programs. Our total AuM increased to USD 109 billion as of 31 December 2020.

7 This translated into a strong 11% underlying AuM growth (16% including foreign exchange effects).In the past, our industry has primarily grown via traditional funds, but we are now increasingly seeing investors in private markets turn to customized mandate solutions as a means of optimizing the return potential of their commitments to the asset class. Many of our clients are looking for specific risk/ return exposures and to combine various asset classes, match asset/liability needs through cash-flow profiling, and ramp up quickly through investment level steering. We are truly differentiated in creating these types of bespoke private markets solutions, with a 20-year track record of forming customized mandates.

8 Today, 64% of our AuM is managed through bespoke private markets solutions. We believe that this differentiates us and will remain important as our industry continues to mature and grow. The transformative trends we identified have been amplified and acceleratedWe are highly satisfied with the resilience our portfolios showed during the volatility of 2020. Our investments were reasonably stable in the first half of the year and rapidly transitioned back to growth in the second half of the year. We believe that our hands-on approach and our thoughtful theme selection helped to facilitate this stability. COVID-19 has, in fact, amplified and accelerated most of the trends and themes on which Partners Group has team of over 500 private markets investment professionals works year-round to identify transformative trends across sectors.

9 We find and target companies and assets with strong potential to benefit from these trends. Then, together with our over 200 Operating Directors Andr Frei Co-Chief Executive Officer, Steffen Meister Executive Chairman, David Layton Co-Chief Executive Officer Partners Group | 7 Annual Report 2020 Annual Report 2020 Message from the Chairman and the Co-CEOsand Industry Advisors, our professionals leverage our entrepreneurial governance approach to transform the companies and assets in which we have invested into market leaders. This approach has delivered strong revenue growth and sustained double-digit EBITDA growth across our direct private equity portfolio in turn giving us a strong track record of investment outperformance in many 2020, we continued our steady work on our investment themes, which are underpinned by long-term secular trends.

10 This has been our approach across the entire platform, not only in private equity, but also in private infrastructure and private real estate, for several years. However, today, this approach shapes our investment activities more than ever. In private equity alone, there are hundreds of such themes; we currently zoom in and develop concrete investment opportunities in more than 50 of them, grouped into our four main sectors. Just to name a few of these, we look at cell and gene therapy related tools and services in Health & Life, software verticalization in Technology, digitized facility management in Services, and sustainable alternatives in industrial food production in Goods & Products, amongst many others.