Key Takeaways
- • Grizzly Research published a short report on Partners Group Holding AG (SWX:PGHN), a Swiss alternative asset manager with approximately US$184.9 billion in assets under management, alleging severe valuation discrepancies in its evergreen funds.
- • The short seller estimates approximately 40% of evergreen funds' investments may be severely mismarked, with specific examples including a 176.9% markup on a Swedish data-center operator despite 18% revenue decline and 42% wider operating losses, and an 857.8% equity markup on a Portuguese biocontrol company with only 2% revenue growth.
- • Grizzly identified material discrepancies between regulatory filings, including a major Asia-Pacific holding reporting 50 million fewer shares to the SEC than to the Hong Kong Companies Registry, and a Russian pharmaceutical investment marked up during the period the Russian state seized the asset.
- • Partners Group's evergreen funds generate nearly half the company's revenues and are a core business line; the firm has responded by limiting withdrawals on one affected fund to 5% of net assets, according to Bloomberg reporting.
- • External experts consulted by Grizzly Research, including finance professors and former Partners Group employees, reportedly expressed grave concern about the findings, with one academic characterizing the situation as "worse than Wirecard."
Summary
Grizzly Research, a short-selling hedge fund, released a critical investigative report on April 29, 2026, targeting Partners Group Holding AG, the Swiss-listed alternative asset manager. The firm manages approximately US$184.9 billion in assets under management and has built its business substantially around evergreen funds—perpetual investment vehicles that generate nearly 50% of company revenues. Grizzly's analysis focused on the capital structure, underlying holdings, and regulatory filings of Partners Group's largest evergreen vehicles, particularly its Master Fund, cross-referencing findings against peer valuations and industry expert assessment.
The core allegation centers on systematic valuation inflation within evergreen fund portfolios. Grizzly estimates that close to 40% of evergreen fund investments may be severely mismarked relative to economic reality. The report documents specific examples of marked-up investments whose underlying business performance deteriorated sharply. A Swedish data-center operator received a 176.9% markup during a period when its revenue fell 18% and operating losses widened 42%. A Portuguese biocontrol company received an 857.8% common equity markup despite reporting only 2% revenue growth, suggesting valuations disconnected from operational performance.
The report identifies material regulatory filing discrepancies that raise questions about valuation governance and disclosure accuracy. A major Asia-Pacific holding reported 50 million fewer shares of a key investment to the SEC than it reported to the Hong Kong Companies Registry—a significant filing inconsistency. More strikingly, Grizzly alleges that Partners Group marked up a Russian pharmaceutical equity investment during the same reporting period in which the Russian state seized the asset by executive decree, raising questions about asset valuation timing and market-to-market discipline.
Grizzly consulted with industry experts, former Partners Group employees, and finance professors during the investigation. One academic reviewer reportedly characterized the valuation concerns as "worse than Wirecard," referencing the 2020 accounting fraud scandal. This external validation suggests the allegations extend beyond short-seller advocacy to substantive technical concern about valuation methodology and internal controls. In response, Partners Group has implemented withdrawal restrictions on at least one evergreen fund, limiting redemptions to 5% of net assets—a material liquidity constraint typically indicative of underlying asset illiquidity or valuation disputes.
The report directly challenges the credibility of Partners Group's financial reporting and fund accounting at a time when the company's evergreen fund model represents a substantial revenue driver. For institutional investors, family offices, and fund allocators with exposure to Partners Group or its investment vehicles, the allegations present material questions regarding asset valuation integrity, regulatory compliance, and the reliability of reported performance metrics.
The core allegation centers on systematic valuation inflation within evergreen fund portfolios. Grizzly estimates that close to 40% of evergreen fund investments may be severely mismarked relative to economic reality. The report documents specific examples of marked-up investments whose underlying business performance deteriorated sharply. A Swedish data-center operator received a 176.9% markup during a period when its revenue fell 18% and operating losses widened 42%. A Portuguese biocontrol company received an 857.8% common equity markup despite reporting only 2% revenue growth, suggesting valuations disconnected from operational performance.
The report identifies material regulatory filing discrepancies that raise questions about valuation governance and disclosure accuracy. A major Asia-Pacific holding reported 50 million fewer shares of a key investment to the SEC than it reported to the Hong Kong Companies Registry—a significant filing inconsistency. More strikingly, Grizzly alleges that Partners Group marked up a Russian pharmaceutical equity investment during the same reporting period in which the Russian state seized the asset by executive decree, raising questions about asset valuation timing and market-to-market discipline.
Grizzly consulted with industry experts, former Partners Group employees, and finance professors during the investigation. One academic reviewer reportedly characterized the valuation concerns as "worse than Wirecard," referencing the 2020 accounting fraud scandal. This external validation suggests the allegations extend beyond short-seller advocacy to substantive technical concern about valuation methodology and internal controls. In response, Partners Group has implemented withdrawal restrictions on at least one evergreen fund, limiting redemptions to 5% of net assets—a material liquidity constraint typically indicative of underlying asset illiquidity or valuation disputes.
The report directly challenges the credibility of Partners Group's financial reporting and fund accounting at a time when the company's evergreen fund model represents a substantial revenue driver. For institutional investors, family offices, and fund allocators with exposure to Partners Group or its investment vehicles, the allegations present material questions regarding asset valuation integrity, regulatory compliance, and the reliability of reported performance metrics.
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