Partners Group Curbs Distressed Funds' Access to EUR 6 Billion of Refinancing as Buyout Arm Slims

Partners Group is keeping distressed-debt investors and hedge funds off the approved-lender lists for three portfolio companies — Emeria, Ammega and Breitling — as roughly EUR 6 billion of debt tied to those holdings comes due in 2028. The Swiss asset manager's move is a bid to keep refinancing talks under its own control rather than ceding ground to opportunistic creditors.

The property-services firm Emeria accounts for the bulk of that exposure, with negotiations underway over EUR 3.6 billion of liabilities. The restricted transferability of those loans underscores the strain running through the buyout book.

Buyout unit trimmed as redemptions climb

The defensive posture on debt comes alongside a broader reshaping of the traditional private-equity business. Dozens of roles worldwide were cut or shifted internally following a performance review, Bloomberg reported. Some staff left the firm; others moved into infrastructure and royalties. Partners Group told the news agency that team headcount remains within its long-term average.

Behind the restructuring lie weaker returns from older portfolios and a rise in redemption requests across open-ended evergreen vehicles. To accommodate investors, the firm reworked its existing private-equity evergreen strategy, giving clients greater flexibility.

Credit push targets high-single to low-double-digit yields

Roughly two weeks ago, Partners Group launched a global multi-sector private-credit income strategy aimed at institutional clients and private-wealth investors through an open evergreen fund. It targets high-single-digit to low-double-digit returns, generated mainly from running income, and blends direct lending, credit secondaries, fund financing, royalties, and opportunistic and liquid credit. The launch was accompanied by an October 6 chartbook titled "Higher-for-Longer," framing the strategy for a changed rate environment.

Separately, shareholders of the London-listed Partners Group Private Equity Limited backed an orderly wind-down of their portfolio. The vehicle is managed by Partners Group Holding AG, but the holding company is not the entity being wound up — a distinction that leaves the core asset-management business untouched.

Shares 38% lower since the start of the year

Market sentiment remains subdued. The stock closed Friday at EUR 655.20, down 38% year-to-date, and sits 5.2% above its 52-week low. It also trades 23% below its 200-day moving average of EUR 858.73. Leaning harder into private credit is the firm's attempt to open more dependable earnings streams while it works through the headwinds elsewhere.