Demand for residential and commercial real estate in the UK may suffer as a result of Brexit, affecting capital appreciation and rental incomes, the firm wrote in a first-half assets under management announcement. Despite this, Partners expects the overall impact on its business, including sterling-related exposure, to be limited.
“From a corporate perspective, only about 3 percent of total AuM is [sterling]-denominated and therefore the weakening of the GBP is not expected to have a significant effect on the firm’s revenue contribution in [Swiss francs],” the firm wrote.
About 6 percent of the Zug, Switzerland-based firm’s €49.1 billion in assets under management are exposed to the UK, and less than 2 percent of this is invested in real estate, according to the statement.
Partners‘ secondaries investments rose slightly to $1.2 billion during the first half of the year, compared with $1.1 billion a year earlier. This represented 23 percent of total investment volume, unchanged from a year earlier.
The firm screened $65 billion in potential secondaries deals and invested in less than 2 percent of these, a drop from the $71 billion screened a year earlier.