Partners Group Defends Valuation Practices as Royalties Business Crosses $1 Billion

Swiss private markets firm Partners Group defends valuation methods, targets $32B in fundraising, and boosts dividend as AI drives infrastructure demand.

The Swiss private markets manager Partners Group finds itself navigating a peculiar disconnect: operational momentum is accelerating while its stock languishes near 52-week lows. The Zug-based firm has lost roughly 13 percent of its market value since January, with shares trading at €950.40 — well below the 200-day moving average of €1,071.

The company's response to recent bearish pressure has been unusually direct. After a US research house leveled accusations against its valuation methods — specifically targeting evergreen fund structures — management pushed back forcefully, branding the claims as defamatory. The rebuttal centered on two key holdings. The firm clarified that its stake in Zenith Longitude Limited is not a shell entity but rather a holding company for global logistics operator Apex Logistics. On the pharma front, Partners Group confirmed that its nationalized Russian subsidiary of Stada has been written down to zero in its books, eliminating any suggestion of inflated valuations.

The market rewarded the clarity. On May 4, shares climbed 2.5 percent to roughly €950, creating some breathing room above the 52-week trough of €871 hit in late March. That still leaves the stock nursing a year-to-date decline of about 13 percent.

Royalties and Infrastructure Drive Expansion

Behind the market noise, the business is scaling up in specialized corners of private markets. The royalties portfolio — a niche strategy targeting cross-industry licensing fees — has crossed the $1 billion mark in assets under management. Management has set its sights far higher, targeting $30 billion in this segment over the long term.

The broader fundraising machine is also humming. Partners Group is targeting up to $32 billion in new capital this year. A key component is a new infrastructure secondaries program, expected to close in the second quarter with a minimum target of $3 billion. Capital from that vehicle is earmarked for direct opportunities in the US power sector.

A special opportunities fund is also in preparation, designed to target companies seeking alternatives to traditional financing — a play on current market dislocations that favor dominant asset managers.

AI Tailwinds and Dividend Growth

The convergence of physical and digital infrastructure is emerging as a defining investment theme. The rise of artificial intelligence is driving massive capital requirements for data centers, cooling systems, and power grids — areas where Partners Group sees structural demand for years to come. Roughly 90 percent of the firm's portfolio already leverages AI for workflow optimization.

Shareholders are being offered a tangible reward for patience. A sharply increased dividend of CHF 46 per share is slated for late May, reflecting the underlying earnings strength. Operating profit jumped 19 percent to around CHF 1.6 billion in fiscal 2025, fueled by a surge in performance fees.

Analysts project earnings of roughly CHF 48 per share for 2026, with dividends expected to track a similar trajectory. The next major checkpoint comes on September 1, when the firm releases its half-year results — the first real test of whether operational excellence can finally translate into share price recovery.