The directors present the strategic report of Partners Capital Investment Group Limited (the "Company") for the year ended 31 December 2024.
The business activities during the year through 31 December 2024 were in line with the Company’s expectations. The loss for year, after taxation, amounted to £21,436 (2023: £29,041 profit), which is a result of the loss recorded in the Company. Group turnover for the year of £70,757,558 (2023: £51,119,891), which comprises management, performance and commitment fees as a result of asset management services attributed to the Subsidiary, has increased predominately due to stronger client performance and thus higher performance fees earnt. Administrative expenses are predominately attributed to the Subsidiary’s business activities. At year end, the Group had net assets of £12,642,891 (2023: £6,209,157). The directors consider these to be the key performance indicators of the Company.
Financial risk management objectives and policies
The objective of financial risk management is to plan, organise and perform sufficient actions to provide reasonable assurance that the group's overall objectives and goals will be met; and to limit the risk of adverse events occurring to a level that is acceptable to the members.
The group identifies and manages its key financial risks by means of a risk management policy that is appropriate to its size while preserving its effectiveness. Key parts of the policy to manage financial risk, including operational risk, are:
regular management meetings;
regular management information;
regular and proportionate compliance monitoring; and
annual risk assessments as part of the firm's ICARA process.
The group does not hedge any of its financial risks.
Exposure to price risk
The group does not take positions itself and hence does not expose itself to price risk, except to the extent that balances are maintained in foreign currencies where required for the proper operation of the business. Any foreign exchange risk arising out of this is monitored by senior management and regulatory capital is maintained to cover the assessed risk of adverse changes in rates. At 31 December 2024 the group maintained a net long position in euro denominated balances of approximately £764,326, a net long position in Canadian dollar denominated balances of approximately £33,387 and a net long position in US dollar denominated balances of approximately £1,341,375.
Exposure to credit risk
The group does not generally extend credit to its clients or counterparties, although exposure does arise when performance fees or commissions become payable. Adherence to agreed credit terms is monitored closely by senior management and regulatory capital is maintained to cover assessed risk of default. The group also maintains an exposure in connection with funds held on current and deposit accounts with its bankers.
Exposure to liquidity risk
The group assesses its exposure to liquidity risk as part of its ICARA process and maintains regulatory capital to cover the assessed risk of adverse changes in the value of the firm's assets, including its illiquid assets, of which the most significant are fixtures and office equipment net of depreciation totalling approximately £491,438, a rent deposit of £1,168,478, and approximately £1,070,301 of weighted prepayments.
Exposure to cash flow risk
The group seeks to maintain at all times sufficient funds in readily accessible accounts with its bankers to meet its liabilities when they fall due. Details of the balances are given in the balance sheets on pages 13 & 14. In accordance with the FCA rules the group maintains capital equivalent to one quarter of its estimated projected annual fixed overhead expenditure to ensure that the group's affairs could be wound up in an orderly manner should the need arise (there is no current intention or expectation for such an eventuality).
This Statement focuses on how the Directors of the Company have had regard, during the year, to the matters set out in Section 172(1) (a) to (f) of the Companies Act 2006 (the “Act”) when performing their respective duties under Section 172 of the Act to promote the success of the Company.
During the financial year ending 31st December 2024 (the “Relevant Period”), the Directors have acted in the way that they considered, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In the performance of its duties, the Board has, amongst other matters, considered the long-term consequences of its decisions and engaged with, and listened to the views of, the Company’s key stakeholders so as to build trust, and with a view to ensuring that it fully understands the potential impacts of the decisions it makes. Prior to making key decisions, the Board identifies and considers competing stakeholder interests, priorities and views through regular committee meetings with key stakeholders to ensure that such decisions are fair and balanced and consistent with the Board’s wider duty to promote the long-term success of the Company.
The Company forms part of a wider group, the parent of which, Partners Capital Investment Group, LLP (“PCIG”), is registered in, and subject to the laws of the State of Delaware in the United States. Consequently, the PCIG main Board and its various sub-committees have overarching decision making authority for the Partners Capital group (including the Company) where matters are of group wide significance. PCIG’s decision making framework seeks to take into consideration broader stakeholder issues, which ensures that stakeholder consideration with respect to decisions at the Company level flows naturally from the broader group’s governance framework.
As a firm, we are committed to maintaining high standards of business conduct and our culture encourages our people to always act with integrity. Our group wide policies and procedures, governance framework, code of ethics and ongoing staff training programme all support this.
Clients
Our clients are key to ensuring the long-term success of the Company and, as a result, they will always be a key focus and priority for the Company. We are dedicated to serving our clients and to ensuring that we treat them fairly. We seek to provide quality investment advisory and discretionary management services to sophisticated clients so that they can achieve their long-term investment objectives. We strive to develop a deep relationship with each client to fully understand their objectives and we engage continuously to ensure that we are delivering on their expectations and adapting our advice as those objectives evolve.
During the relevant period, we have conceived of and/or launched several new investment pooled vehicles focused on specific investment strategies that are of interest in view of the current investment climate, thereby broadening our clients’ ability to gain exposure to relevant markets and ensuring that our offering expands in line with the evolving investment landscape.
Employees
Our people drive the success of our business and enable us to deliver for our clients and broader stakeholders. Our leadership team gives significant focus to our People Strategy and related policies to ensure that they are fit for our organisation and are aligned with best practice across the industry. We regularly engage with our employees through surveys, networking and firm-wide events so we can continue to attract, retain and develop diverse talented individuals who are aligned to our culture.
Our meritocracy is enabled by fostering a truly inclusive and collaborative culture. Diverse perspectives, backgrounds and experiences are valued and encouraged. This is embodied in the way we do business. We continue to engage with team members via surveys and forums to receive feedback on our culture, leadership and the Firm. This feedback enables the revaluation of goals and strategic priorities.
From a compensation perspective, we have an attractive compensation structure, which applies consistently across the business globally. A key element of the firm’s compensation structure is our Profit Share Plan which provides team members with a Firm-funded means of investing in our Pooled Vehicles, aligning incentives with the performance of Partners Capital investments.
Regulator
The Company’s subsidiary, Partners Capital LLP, is regulated by the United Kingdom’s Financial Conduct Authority (“FCA”) and engages with the FCA in an open and transparent manner. The firm’s Compliance team are primarily responsible for engaging with regulators on compliance activities, monitoring, regulatory engagement and developments.
Suppliers
We value the relationship we have with all of those who supply goods and services to the firm and acknowledge that they are fundamental to our business success. We seek to use highly reputable suppliers across all areas of our business and our preferred supplier list consists of trusted partners with whom we have established methods of working together, ensuring we deliver for all our relevant stakeholders. We seek to act as a trusted partner to all our suppliers by ensuring that we pay promptly for goods or services received and comply with all relevant contractual obligations to which we are subject. Each relevant department engages with their respective suppliers and are responsible for managing their respective relationships, including ensuring that appropriate service level agreements and key performance indicators are in place and that these are closely monitored to ensure that service delivery standards are met.
Society and ESG
Partners Capital has implemented a Sustainable Investing Policy which describes our principles-based approach to Sustainable Investing and the integration of sustainability risk factors into our investment decision making. It explains why we believe that assessing the ESG integration approaches of those third-party asset managers with whom we invest, engagement with them to improve their practices and the deployment of capital into impactful opportunities help us generate better investment outcomes for our clients while at the same time having a positive effect on society and the environment.
Our Policy includes five pillars:
Assessment: We assess the ESG integration and stewardship approaches of those third-party asset managers with whom we invest through our ongoing communications and monitoring which is augmented by our annual Asset Manager ESG Integration Survey.
Engagement: We seek to constructively engage with those third-party asset managers with whom we invest to ensure they are deploying best practice integration and stewardship approaches.
Capital Allocation: Where it aligns with our clients’ sustainability related preferences, we seek to generate additional returns and impact by allocating capital to those managers who have gained investment insights through integrating material ESG considerations and through allocating to companies and sectors who are contributing to and benefiting from sustainability trends.
Exclusions: We prefer engagement over blanket exclusionary approaches, and therefore we only deploy a minimal firm-wide exclusions policy.
Advocacy and Social Responsibility: We collaborate with our clients, third-party asset managers with whom we invest and leading capital owning institutions to support the acceptance and implementation of Sustainable Investing practices across the financial services industry.
These five pillars help us to deliver positive outcomes as a business by: contributing to financial outperformance for our clients, encouraging adoption of best practice ESG integration in financial markets through our relationships with those third-party asset managers with whom we invest, and through the allocation of capital to those companies and sectors contributing to sustainability trends.
Partners Capital is a signatory to the UN-supported Principles for Responsible Investment and is a member of the Institutional Investors Group on Climate Change (IIGCC).
Future developments
The directors expect the general level of activity to remain consistent with 2024 in the forthcoming year.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered the Company's ability to continue as a going concern, including its financial position and future cash flows. The Company does not have external debt and is generating revenue from its core operations. Based on this, the directors are satisfied that the Company has adequate resources to continue operating for the foreseeable future.
Deloitte LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
The company is required by the Companies Act 2006 to disclose the group's energy use. The figures include the energy usage of Partners Capital LLP as this entity would be obliged to disclose usage if reporting on its own.
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Protocol Corporate Accounting and Reporting Standard.
Scope 2 emissions consist only of electricity usage from buildings. Total electricity usage has been obtained over a 12 month period from supplier invoices. Emissions have been calculated using the 2024 UK Government’s Conversion Factors for Company Reporting. The group leased one site during the reporting period that is included in the SECR. Gas usage is not sub-metered by floor but by building as a whole. Therefore, it is not feasible to obtain an accurate figure for the group's gas usage throughout the year. All of the group's activities are based in the UK.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
The group is concerned about energy consumption and carbon emissions and wishes to utilise the mandatory SECR legislation as a foundation for identifying ways of saving energy and reducing carbon emissions. More efficient air conditioning units were installed towards the end of 2023 which has resulted in the energy savings noted above.
In our opinion the financial statements of Partners Capital Investment Group Limited (the ‘parent company’) and its subsidiary (the ‘group’):
give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the group’s and parent company’s industry and its control environment, and reviewed the group’s and parent company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the directors about their own identification and assessment of the risks of irregularities, including those that are specific to the group’s business sector.
We obtained an understanding of the legal and regulatory frameworks that the group and parent company operates in, and identified the key laws and regulations that:
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act, pensions legislation and relevant tax legislation; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the group's ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance and correspondence with the regulator.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and of the parent company and their environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 18 to 33 form part of these financial statements.
The notes on pages 18 to 33 form part of these financial statements.
The notes on pages 18 to 33 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £21,436 (2023: £29,041 profit).
The notes on pages 18 to 33 form part of these financial statements.
The notes on pages 18 to 33 form part of these financial statements.
The notes on pages 18 to 33 form part of these financial statements.
Partners Capital Investment Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5th Floor, 5 Young Street, London, W8 5EH.
The group consists of Partners Capital Investment Group Limited and its subsidiary, Partners Capital LLP.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Under Companies Act 2006, s454 on voluntary basis, the directors can amend these financial statements if they subsequently prove to be defective.
The financial statements have been prepared on a going concern basis. The directors have considered the Company's ability to continue as a going concern, including its financial position and future cash flows. The Company does not have external debt and is generating revenue from its core operations. Based on this, the directors are satisfied that the Company has adequate resources to continue operating for the foreseeable future.
Turnover represents amounts receivable for asset management services provided, net of VAT, where applicable, including management fees, performance fees and commitment fees. Management fees are earned and recognised on an accruals basis having regard to the quantum of assets under management during the year. Performance fees and commitment fees are recognised when earned in accordance with the group's contractual arrangements with its clients. The group works closely with its parent company in providing services to clients and the group's entitlement to revenue is based on an assessment of the respective contributions of the group and its parent to the worldwide services performed.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in profit or loss.
Fixed asset investments are stated at cost less provision for diminution in value.
At each reporting end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include trade and other debtors, amounts owed by group undertakings, accrued income and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including trade and other creditors, accruals and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Employee Profit Share Scheme
The Employee Profit Share Scheme is administered by the immediate parent undertaking, Partners Capital Investment Group, LLP, and the amount is recharged to the group based on the value awarded to participating employees of the group.
The profit-sharing amount is determined annually and approved by management. Twenty-five percent of the profit share award is paid to eligible employees in cash via payroll in the month of May of the year following the profit share award.
Seventy-five percent of the profit share award is invested into the profit share plan during the second quarter following the year of the profit share award, through a Partners Capital pooled vehicle. This portion is paid out in three tranches (each 25% of the total award, adjusted for performance of the plan's investments) according to the vesting schedule, beginning in May of the following year.
Profit-sharing expenses are recognised in profit or loss when the group has a present legal or constructive obligation to make the payment as a result of past service provided by the employee, and when a reliable estimate of the obligation can be made.
The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to profit or loss in the year they are payable.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Incentives received to enter into an operating lease are credited to profit or loss, to reduce the lease expense, on a straight-line basis over the period of the lease.
Incentives given to a sub-lessee to enter into an operating lease are debited to profit or loss, in order to reduce the lease income, on a straight-line basis over the period of the lease.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There were no critical accounting judgements that would have a significant effect on the amounts recognised in the financial statements.
There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
An analysis of the group's turnover is as follows:
In the current year the non-audit services relate to client assets assurance work. In the prior year this related to the preparation of the financial statements.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet. There were additions in the year of £12,729,649.
The subsidiary undertaking is Partners Capital LLP, registered in England and Wales with its registered office being the same as that of the company. The company is a member of Partners Capital LLP and contributed all of Partners Capital LLP's equity capital and controls its affairs. Partners Capital LLP's business is the provision of investment management services.
The amounts owed by group undertakings are unsecured, interest-free and repayable upon demand.
The other debtors due after more than one year relate to a rental deposit on a lease with an expiry date in April 2026.
In the event of a winding up, the amounts due to directors and LLP members would rank along side other creditors. The balance here is included within the other creditors amount in note 15. The loans are interest free and unsecured.
The amounts owed to group undertakings are unsecured, interest-free and repayable upon demand.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has two classes of ordinary shares. A shares carry the right to participate equally in any distributions in respect of dividends and capital (including on a winding up) and are not redeemable. They do not carry voting rights.
B shares carry the right to participate equally in any distributions in respect of dividends and capital (including on a winding up) and are not redeemable. Each B share carries one vote.
6,455,170 A class shares were issued during the year.
Reserves provided for by the Articles of Association are £105,007 (2023: £105,007).
Key management personnel includes the directors and disclosure of their compensation has been included in note 7 to the financial statements.
In addition, key management personnel other than directors received compensation of £18,356,884 (2023: £13,489,226).
At the reporting end date the group and company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The lease agreements relating to these commitments are in the name of the company. However, all expenses and income related thereto are incurred and received by the subsidiary.
Group
As part of a corporate restructure which completed in 2024, USD denominated loans that were historically advanced by Partners Capital Investment Group, LLP and Partners Capital Investment Group (Holdings), LLP, to both key management personnel and employees of the group, were transferred to the company and then reassigned, such that the new lending entity became Partners Capital LLP. The outstanding balance of the loans reassigned in February 2024 was equivalent to £6,274,479, of which £2,609,328 relates to key management personnel of the group. The reassigned loans were then settled by the key management personnel and employees of the group in July 2024. In addition, existing loans advanced historically by Partners Capital LLP to key management personnel of the group for an amount outstanding of £849,220 were settled in February 2024. In July 2024, historical USD denominated loans amounting to the equivalent of £25,769,010, of which £25,482,900 relates to key management personnel of the group, were reassigned to the company by affiliated entities within the parent group, and then settled upon completion of the restructuring in July 2024.
For disclosure of key management personnel compensation of the group, refer to note 21.
Company
As part of a corporate restructure which completed in 2024, USD denominated loans that were historically advanced by Partners Capital Investment Group, LLP and Partners Capital Investment Group (Holdings), LLP, to both key management personnel and employees of Partners Capital LLP and the company, were transferred to the company and then reassigned, such that the new lending entity became Partners Capital LLP. The outstanding balance of the loans reassigned in February 2024 was equivalent to £6,274,479, of which £1,076,701 relates to key management personnel of the company. The reassigned loans were then settled by the key management personnel and employees of Partners Capital LLP and the company in July 2024. Furthermore, in July 2024, historical USD denominated loans amounting to the equivalent of £25,769,010, of which £9,824,940 relates to key management personnel of the company, were reassigned to the company by affiliated entities within the parent group, and then settled upon completion of the restructuring in July 2024.
Detailed disclosure in relation to intragroup transactions relating to the corporate restructure have been excluded based on the exemption adopted in accordance with FRS 102, Section 33.
In prior periods, the group incorrectly accounted for the employee profit share scheme. The directors have quantified the adjustments for both the current and prior periods, and, accordingly, has restated the previously recorded other creditors and amounts owed by group undertakings. The impact of the employee profit share adjustment was a £3,467,325 increase in 1 January 2023 amounts owed by group undertakings and other creditors. The impact for the year ended 31 December 2023 was a £4,833,769 increase in other creditors and amounts owed by group undertakings.
In July 2025, an agreement was executed between the subsidiary and a client, which obliged the subsidiary to incur a cost of $500,000 to compensate that client in relation to a trade execution issue. This amount is net of the anticipated insurance reimbursement.
Further in July 2025, a new wholly owned subsidiary of the Company was incorporated in Switzerland as Partners Capital Switzerland Sarl, in the form of a limited liability company with registration number CHE-298.103.305.