Partners Group Management Bets $20 Million on Recovery as Short-Seller Allegations Stoke Selloff

Co-founder Fredy Gantner leads insider buying after Grizzly Research short report triggers 28% stock drop; firm caps fund redemptions but maintains 2026 targets.

The top brass at Partners Group has put its money where its mouth is, buying more than 20 million Swiss francs' worth of the firm's own shares in a dramatic show of confidence. The purchases, which included roughly 8.2 million francs on Friday alone, come as the stock reels from a punishing 28 percent year-to-date decline triggered by a blistering short-seller report and fears over fund liquidity.

Co-founder Fredy Gantner, who saw nearly a billion francs evaporate from his paper fortune last week, told the SonntagsZeitung that the market's reaction was a "massive overreaction." He disclosed that he had personally added to his stake in recent days, and regulatory filings confirm that management collectively stepped up to the plate on Friday.

The turbulence began on April 29, when US-based Grizzly Research released a report alleging that Partners Group's evergreen funds are overvalued by as much as 40 percent of their investments. The short seller even cited a professor who described the situation as "worse than Wirecard." Partners Group fired back, calling the accusations "frivolous, defamatory and highly misleading," and said it is exploring legal action, including potential criminal complaints for market manipulation. Gantner himself broke his silence in an interview with Tages-Anzeiger, vowing to pursue charges.

Compounding the reputational damage, the company last Wednesday was forced to cap further redemptions at several open-ended funds after investors rushed for the exit. The stock crashed as much as 16 percent that day. The affected evergreen vehicle oversees roughly $8.6 billion. Partners Group now expects net new money to turn positive in the first half of 2026, though the drag from the cap could shave one to two percentage points off asset growth in the second half and again in 2027.

Despite the turmoil, the group is holding firm on its full-year targets. It still anticipates gross inflows of $26 billion to $32 billion for 2026. Gantner pointed to a record year and a dividend yield of around seven percent as reasons for long-term holders to stay put.

Technically, the stock looks oversold. The relative strength index sits at 27.7, well into bearish territory. Friday's close of €783.00 marked a slight 0.57 percent gain on the day, but the weekly loss stood at 13.5 percent. The 52-week high of €1,213.50 is nearly 36 percent above the current price, while the low of €733.00, hit on June 3, is just 6.8 percent below — a level that could provide support if the sell-off deepens.

The coming days bring a fresh catalyst: the European Central Bank's rate decision on June 11. Higher interest rates would lift discount rates, potentially squeezing valuations further across private equity and private credit — unwelcome timing for a company already fighting to restore trust.

Chairman Steffen Meister has stuck to the existing strategy, and Gantner promised a more proactive communication approach going forward, admitting the company had learned a painful lesson. Whether the insider buying is enough to stem the bleeding remains to be seen, but management's willingness to deploy over 20 million francs of their own money sends a clear signal: they believe the selloff has gone too far.