Inside the shake-up
Partners Group has been rejigging its private equity ranks, cutting or reassigning dozens of roles across regions and levels, according to people familiar with the moves. Some employees left the firm, while others shifted into areas such as Infrastructure and Royalties. The unit, which counts more than 200 people globally, is overseen by Wolf-Henning Scheider. A spokesman said the departures followed one of the firm's regular performance reviews.
In a statement, the company said, "Partners Group's private equity team size remains consistent with its long-term average, while we have significantly strengthened our senior operational capabilities over the past year," adding, "This reflects a buyout environment in which creating long-term value and driving distributions require greater operational intensity." Recent senior additions include Tarak Mehta, Nicholas Smith Wang, Jennifer Hoh and Pete Zippelius.
Performance, exits and redemptions
Results from some older private equity pools have trailed certain peers, helping drive a surge in investors asking to take money out of Partners Group's evergreen products. Slower deal exits have stretched the timeline for returning capital, and some investors, especially wealthy individuals, have been using the periodic redemption windows that the firm's evergreen structure allows.
Timing has been a swing factor. More than 40% of the Global Value Fund portfolio was invested in 2021 and 2022, and transactions agreed near the end of the low-rate era at high valuations are now facing much higher borrowing costs.
Portfolio marks, assets and scrutiny
Partners Group has logged several write-downs on deals struck around the post-Covid boom. Earlier this year, it wrote off its investment in Pharmathen, has been in talks to hand control of Schleich to creditors, and has considered injecting new capital into Emeria SASU. One marquee holding, watchmaker Breitling, has been cutting jobs as it deals with softer luxury demand and rising costs.
This year, the shares have dropped by about 40%, putting the Zug-based firm among Europe's weaker financial stocks at a time when private equity managers broadly are under pressure. The company, which manages $186 billion, has also been in the crosshairs of a short seller questioning valuations. A recent leadership shuffle that moved David Layton from chief executive to chief investment officer has not reversed the decline.
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Even so, Partners Group says some recent private equity investments are showing the strongest earnings growth in its 30-year history. And a Goldman Sachs research report found that the firm's newer infrastructure evergreens have outperformed many large rivals.
The plan to release pressure - and what it means for you
To give investors clearer options, Partners Group has proposed splitting its €6.6 billion Global Value SICAV into two pockets: one holding older assets and another with a smaller set of newer investments that the firm sees as more likely to generate higher returns. The idea is to create a path for those seeking liquidity to cash out, while allowing long-term backers to stay exposed to the fresher bets.
If you hold the stock or invest through private-markets products, the storyline is simple enough: a refocused team, a fund restructure designed to handle redemptions, and a portfolio mix where timing matters a lot more than usual.
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