Amid Short Seller Battle, Partners Group Launches Income-First Private Equity Strategy

Swiss private-markets firm boosts dividend 10%, launches lower-risk PE vehicle, battling Grizzly Research defamation and tightening social due diligence.

Partners Group is navigating one of its most turbulent stretches in years. The Swiss private-markets firm has just delivered a double-digit dividend increase to shareholders and rolled out a new investment product designed to generate more predictable cash flows — all while fighting defamation allegations from a US short seller and tightening its social standards after discovering child labor in a portfolio company. The stock, meanwhile, has shed around 13 percent since the start of 2026.

Total Return Strategy Targets Steadier Yields

On May 21, 2026, Partners Group unveiled its “Total Return Strategy,” a private equity vehicle built around majority stakes in companies that use significantly less debt than traditional buyout funds. The goal is to produce higher current income and lower financial risk. The firm is targeting gross total returns in the mid-teen percentage range and a gross dividend yield of roughly 5 to 8 percent. Holdings can be kept for up to twelve years.

The strategy will focus on industries with robust cash flows — industrial production, distribution, transport and logistics, healthcare, and consumer goods and services — while deliberately avoiding sectors prone to technological disruption. The idea is to offer institutional investors a more conservative capital structure with sustainable distributions.

Dividend Payout Continues a Decade-Long Streak

Just one day before the new strategy launched, the stock began trading ex-dividend. The net dividend of CHF 46.00 per share, a 10 percent increase from last year’s CHF 42.00, will be paid out on May 27, 2026. It marks the tenth consecutive annual increase. For 2025, Partners Group reported revenue of CHF 2.563 billion, EBITDA of CHF 1.611 billion, and net profit of CHF 1.261 billion — figures that underpin the firm’s commitment to steadily rising payouts.

Legal Fight with Grizzly Research Heats Up

The dividend boost comes at a time when the company is actively fending off reputational attacks. In late April, US short seller Grizzly Research published a scathing report that compared Partners Group to the collapsed payment processor Wirecard. The market reaction was swift. Chairman Steffen Meister confirmed to the NZZ am Sonntag that Partners Group is pursuing legal action against Grizzly Research and will not let the allegations go unchallenged.

The short seller report is not the only governance headache. Meister acknowledged that the firm has become more cautious about investing in socially exposed sectors after child labor was uncovered at a US food manufacturer in its portfolio. That incident has sharpened the firm’s focus on social due diligence.

Defensive Tone on Investment Policy

The more selective investment approach is widely seen as an attempt to reassure institutional clients and reduce the surface area for future short seller attacks. But it creates a tension with Partners Group’s ambitious long-term growth target: the firm still aims to manage approximately $450 billion by 2033, up from over $185 billion today. For 2026, management expects gross new client demand of $26 billion to $32 billion, while performance fees — normally 25 to 40 percent of total revenue — are forecast to come in at the lower end of that range.

Stock Still Well Below Its Highs

The new strategy and legal offensive have not yet lifted the share price. Partners Group stock was recently trading at €938, roughly 11 percent below its 200-day moving average and more than 22 percent off the 52-week high of €1,213.50. On a year-on-year basis, the shares have lost nearly 20 percent of their value.

In early May, various Partners Group funds sold around 542,000 shares of Life Time Group for proceeds of about $15.5 million, part of the firm’s ongoing transaction activity.

ESG Shift Reshapes Private Equity Priorities

The child labor episode and the broader reputational scrutiny reflect a wider shift in private equity. For years, environmental sustainability dominated ESG agendas. Now social standards — supply chains, labor conditions, and supplier compliance — are moving to the forefront of due diligence. For Partners Group, stricter selection criteria could slow the pace of new investments, creating a strategic balancing act. The next key test comes in July 2026, when the firm reports its assets under management as of the end of June, revealing whether the confirmed demand forecast is already showing up in the books.