Partners Group Holding AG is using who-can-own-it clauses in loan agreements to keep opportunistic funds from entering the capital structures of three portfolio companies as part of a roughly €6 billion refinancing effort. The trade off is a smaller buyer pool just as loan prices drop.
People familiar with the talks say the firm has turned down hedge funds and other specialist investors seeking to get onto Emeria's approved lender list as restructuring negotiations intensify. Those investors could still access Emeria through its bonds, which are not subject to the list.
Separately, Partners Group has barred distressed credit investors from viewing Ammega's financials or buying into its debt, according to the people.
Approved lender lists - often called white lists - sit in loan documents and name which managers can hold a company's debt. If you are not on the list, you need the sponsor's consent to buy the loan. Private equity owners have used this tool since the financial crisis to control their lender base, and it is becoming a higher priority as they worry hedge funds are building positions to gain influence or control. That dynamic is now in play for Partners Group.
For Emeria and Ammega, the transfer limits rank among the market's toughest, the people said. The restrictions have long existed, but they are drawing fresh attention as loans trade at distressed levels and some current holders are forced sellers. At Emeria, Ammega and Breitling, the bulk of the loans sit in CLO vehicles and with other holders that aren't focused on distressed or restructuring scenarios.
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The approach cuts both ways. Keeping hedge and distressed funds out can protect existing creditors from tactics like uptiering, where select lenders gain higher-ranking claims. It can also squeeze liquidity, as seen at KKR & Co.-owned GenesisCare, where a strict list limited demand from distressed buyers and deepened a funding crunch.
Hedge funds sometimes use sub-participations to get exposure despite transfer limits. In that setup a bank or other third party holds the loan but passes through the economics, leaving the fund without a direct voice in a restructuring. That route can still prove difficult, since the Partners Group loan terms let borrowers pinpoint the true economic owner and, at times, require the unwinding of a trade.
Prices show the pressure. Bloomberg quotes put Emeria's March 2028 term loan near 70 cents on the euro, Ammega's December 2028 loan around 79 cents and Breitling's October 2028 loan at roughly 82 cents. Emeria, formerly Foncia, is negotiating with creditors to rework €3.6 billion of debt, and Partners Group will likely need to inject cash to get a deal done.
According to a spokesperson, since 2024 the firm has completed in excess of $49 billion of transactions across its private equity portfolio, including refinancings, capital raises and repricings. The firm has also cut or reassigned dozens of roles in its private equity unit to improve performance under investor scrutiny.
If you hold these loans or CLO tranches backed by them, white lists affect two essentials: liquidity and negotiating power. A smaller approved buyer pool can complicate exits and it shapes who sits at the restructuring table, which influences recoveries and timelines. Watch how tightly the lists are enforced, how much new money Partners Group commits to Emeria and whether non-specialist holders can find sponsor-cleared buyers.
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