Key Takeaways
- • Investors in Partners Group's flagship US private equity master fund requested $2.2bn of withdrawals in the third quarter, equal to 15% of net assets and more than double the $900m (around 6% of assets) requested in the second quarter, according to the Financial Times.
- • Partners Group capped withdrawals at 5% in both quarters, invoking the fund's liquidity limits as requests exceeded the permitted threshold.
- • BNP Paribas analysts reportedly attributed the pressure to softer performance and rising competition from new evergreen products in the US wealth market.
- • Partners Group plans to restructure its €6.6bn European evergreen private equity fund by separating older, weaker-performing assets from newer investments, and is considering similar changes to other evergreen vehicles.
- • The firm's shares have fallen around a third this year amid performance concerns and withdrawal pressure.
Summary
Investors in Partners Group's flagship US private equity master fund requested $2.2bn of withdrawals in the third quarter, according to a report by the Financial Times. The requests equal roughly 15% of net assets and more than double the previous quarter's total, when redemption requests were $900m, or around 6% of assets.
In both periods, Partners Group capped withdrawals at 5%, exercising the fund's liquidity limits as requests exceeded the permitted threshold. The firm said the latest requests were consistent with guidance issued in July and reflected patterns typically seen after evergreen funds impose redemption limits.
BNP Paribas analysts reportedly pointed to softer performance and increased competition from new evergreen products in the US wealth market as contributing factors. The pressure comes as Partners Group's shares have fallen around a third this year amid performance concerns and withdrawal pressure.
Partners Group has also announced plans to restructure its €6.6bn European evergreen private equity fund by separating older, weaker-performing assets from newer investments. The firm is considering similar changes to other evergreen vehicles, signalling a broader effort to address liquidity and performance concerns across its semi-liquid private markets platform.
In both periods, Partners Group capped withdrawals at 5%, exercising the fund's liquidity limits as requests exceeded the permitted threshold. The firm said the latest requests were consistent with guidance issued in July and reflected patterns typically seen after evergreen funds impose redemption limits.
BNP Paribas analysts reportedly pointed to softer performance and increased competition from new evergreen products in the US wealth market as contributing factors. The pressure comes as Partners Group's shares have fallen around a third this year amid performance concerns and withdrawal pressure.
Partners Group has also announced plans to restructure its €6.6bn European evergreen private equity fund by separating older, weaker-performing assets from newer investments. The firm is considering similar changes to other evergreen vehicles, signalling a broader effort to address liquidity and performance concerns across its semi-liquid private markets platform.
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