GQG Partners saw a twofold increase in net flows for 2024, as the firm eyes a robust pipeline of potential deals for its private capital solutions (PCS) business.
Announcing its full-year results for 2024, the fund manager reported net flows of US$20.2 billion, double the size of the US$10 billion it saw in net flows for 2023.
GQG saw its funds under management (FUM) rise 26.9 per cent from US$120.6 billion at the end of 2023 to US$153 billion by the end of December 2024.
Its FUM was broken down by US$57.2 billion in international equity, US$40.3 billion in emerging markets equity, US$38.8 billion in global equity, and US$16.7 billion in US equity.
Looking at Australia, the country accounted for US$200 million of the total net flows and US$8.5 billion of its total FUM for 2024.
Tim Carver, CEO and executive director of GQG Partners, remarked: “The growth in FUM reflects strong performance from our investment team and another great effort from our business team.”
Carver said the firm’s focus on strategic growth opportunities remains “vigilant”, and GQG will continue to capture these in 2025.
The chief executive added: “As I look forward into 2025, I see strength in the key measures of health for our business. Of course, given volatility in markets, changes in asset allocation by investors, and the overall geopolitical environment, we may well face headwinds, but we will fight the headwinds and continue to invest and reinvent ourselves.
“We see substantial opportunities for the business in the years ahead and are energised to try to capture them.”
Speaking at its investor presentation, Carver shared an optimistic outlook for its PCS business this year, describing the pipeline of potential deals in the division as robust.
“Having executed quite well on our first foray into M&A, I think our confidence and our ability to do deals have gone up and so we want to have maximum flexibility to use the balance sheet how we see fit where we see really important growth opportunities,” the chief executive explained.
However, he said the firm is mindful that “M&A is extremely hard” and “rarely successful” in the funds management industry, echoing his previous comments following the 2023 full-year results.
In March, the firm acquired stakes in Avante Capital Partners, Proterra Investment Partners and Cordillera Investment Partners from Pacific Current Group, with the intention of launching its PCS business.
Later in December, GQG confirmed it closed approximately $145 million in fundraising for its initial private capital fund.
Carver added that the pipeline for continued fundraising remains very strong and shared his future ambitions for the private capital division.
“This is a business that I would hope to see our first fund get to $200–$250 million. I don’t see any reason why over the intermediate term this can’t be a $1 billion funds under management platform.
“The types of businesses that historically have been targeted have been highly specialist, highly value-added private capital – whether it’s private equity or private credit or private real estate – strategies where we believe that the underlying teams have some very meaningful differentiation and can drive really significant alpha for limited partners or investors.”
