Partners Group caps withdrawals from $8.6 billion private equity fund
The Swiss asset manager restricted redemptions from its Global Value SICAV evergreen fund as its stock price fell more than 17 per cent.
Swiss private asset manager Partners Group Holdings AG has capped withdrawals from its $8.6 billion Global Value SICAV evergreen fund, according to a report by Mint. The fund faced redemption requests for nearly 10 per cent of its net assets, but the firm has an automatic stop at 5 per cent.
Partners Group Chief Executive Officer David Layton told Bloomberg TV on Wednesday that the mandate was to keep investing in deals and required available money for that. Layton noted that redemption pressure seen in private credit has begun to move into other asset classes.
The news impacted the stock prices of several firms on Wednesday. Partners Group shares declined more than 17 per cent, while EQT AB and CVC Capital Partners Plc both fell more than 6 per cent.
The firm has faced recent challenges, including weaker net inflows in the first quarter and a report from short-seller Grizzly Research in April. Grizzly Research claimed the firm was mismarking assets, a charge Partners Group called defamatory and misleading.
Analysts at Citigroup Inc. suggested those concerns seemed overdone, noting that Partners Group receives third-party valuation audits. However, Layton said the short attack had impacted investor sentiment.
While evergreen funds are growing, they account for little more than 5 per cent of all private equity industry funds. This is lower than the nearly 15 per cent of private credit money coming from retail-friendly funds.