Key Takeaways
- • Partners Group Private Equity (PEY) generated €227.3m in realisation proceeds during FY25, representing approximately 22% of opening NAV, which supported new investments, dividend distributions, and limited share buybacks.
- • NAV total return declined 8.7% in 2025, with currency headwinds accounting for 5.7 percentage points of the decline due to US dollar depreciation; idiosyncratic challenges at three portfolio holdings significantly impacted performance.
- • Partners Group's investment manager has accelerated value accretion across 2021–23 vintage funds following initially slow performance and maintains optimistic outlook for 2024–25 investments.
- • PEY maintains disciplined software sector exposure below 10%, meaningfully lower than private equity peer benchmarks, reducing concentration risk in a volatile subsector.
- • The board is expected to announce shareholder-friendly liquidity measures at the June 18 AGM, supported by €56m in contracted distributions at end-Q1 2026 and improving PE deal activity globally (global buyout deal value increased 44% to $904bn in 2025).
Summary
Edison released its report on Partners Group Private Equity (LSE: PEY) on April 23, 2026, assessing the fund's FY25 performance and near-term outlook. While headline NAV total return performance was disappointing at a negative 8.7% for the year, Edison's analysis indicates that currency effects materially distorted underlying results. The US dollar's depreciation against the euro accounted for 5.7 percentage points of the decline, reflecting PEY's significant US dollar exposure of 38% of its end-February 2026 portfolio. Excluding this foreign exchange impact, the underlying NAV decline was modest, though specific idiosyncratic headwinds at three portfolio holdings represented a major negative contributor to returns.
A significant positive driver in FY25 was the substantial level of realisation proceeds totaling €227.3m, equivalent to approximately 22% of opening NAV. These proceeds supported the fund's capital allocation priorities: funding new investments, maintaining an attractive dividend policy, and executing limited share repurchases. This realisation activity reflects strengthening conditions in private equity markets, with global buyout deal value increasing 44% to $904bn in 2025, driven by monetary easing, elevated PE dry powder ($1.3 trillion in 2025), and improved conditions for large public-to-private transactions, according to Bain & Company's Global Private Equity Report 2026.
Partners Group, PEY's investment manager, has demonstrated accelerating value accretion across its 2021–23 vintage funds following an initially slow performance period. The manager expressed optimism regarding investments made in 2024–25, suggesting potential for improved contribution to returns in coming periods. Additionally, Partners Group has maintained disciplined exposure to software companies at below 10% of PEY's portfolio, significantly lower than private equity peer averages, demonstrating a deliberate strategy to reduce concentration risk in a sector subject to valuation pressures.
Edison flagged a potential positive catalyst for PEY shareholders in the form of board measures expected to be announced at the June 18 annual general meeting. These measures are anticipated to address investor liquidity by narrowing the discount to NAV while providing long-term investors an attractive proposition. This outlook is supported by €56m in contracted distributions scheduled for Q1 2026 and the broader strengthening in global PE transaction and exit activity. Prior shareholder-friendly actions, including a renegotiated fee structure, demonstrate the board's focus on enhancing value creation and capital efficiency.
A significant positive driver in FY25 was the substantial level of realisation proceeds totaling €227.3m, equivalent to approximately 22% of opening NAV. These proceeds supported the fund's capital allocation priorities: funding new investments, maintaining an attractive dividend policy, and executing limited share repurchases. This realisation activity reflects strengthening conditions in private equity markets, with global buyout deal value increasing 44% to $904bn in 2025, driven by monetary easing, elevated PE dry powder ($1.3 trillion in 2025), and improved conditions for large public-to-private transactions, according to Bain & Company's Global Private Equity Report 2026.
Partners Group, PEY's investment manager, has demonstrated accelerating value accretion across its 2021–23 vintage funds following an initially slow performance period. The manager expressed optimism regarding investments made in 2024–25, suggesting potential for improved contribution to returns in coming periods. Additionally, Partners Group has maintained disciplined exposure to software companies at below 10% of PEY's portfolio, significantly lower than private equity peer averages, demonstrating a deliberate strategy to reduce concentration risk in a sector subject to valuation pressures.
Edison flagged a potential positive catalyst for PEY shareholders in the form of board measures expected to be announced at the June 18 annual general meeting. These measures are anticipated to address investor liquidity by narrowing the discount to NAV while providing long-term investors an attractive proposition. This outlook is supported by €56m in contracted distributions scheduled for Q1 2026 and the broader strengthening in global PE transaction and exit activity. Prior shareholder-friendly actions, including a renegotiated fee structure, demonstrate the board's focus on enhancing value creation and capital efficiency.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.