Partners Group Pushes Deals and Credit Vehicle as Jefferies Trims Its Targets

Jefferies trimmed its price target to 605 CHF and cut EPS forecasts, as Partners Group's H1 revenue fell 7% and performance fees dropped 39%.

Partners Group is pressing ahead with fresh property transactions and a new credit structure even as sell-side analysts pare back their expectations for the Swiss asset manager. Jefferies cut its price target on the stock to 605 CHF, confirming a "Hold" rating, and trimmed its earnings-per-share forecasts for the next two fiscal years by roughly a tenth.

The revision lands at an awkward moment. Investors had been waiting for signs that the private-markets business is turning a corner after months of weakness, and the lower estimates suggest earnings momentum may stay subdued for now.

Trading on the day offered a modest counterpoint: the shares added 1.6% to 638.80 euros. The broader picture remains bruised, with the stock down 40% since the start of the year.

First-half figures explain the caution

The downgrade follows a soft set of interim numbers. In the first six months of 2026, revenue slipped 7% to 1.12 billion CHF. Performance fees took the hardest hit, tumbling 39% to 216 million CHF. EBITDA fell 9% to 706 million CHF, leaving a margin of 63%, while net profit dropped 13% to 502 million CHF.

Management responded by narrowing its full-year guidance for the share of performance fees in total income to 20–25%, down from an earlier range of 25–40%. The fundraising target, by contrast, was left untouched at 26–32 billion USD in capital commitments for the year.

Leadership handover takes shape

Alongside the operational challenges, the group is preparing a change at the top. Chief executive David Layton is stepping down, as announced about a month ago, with Roberto Cagnati and Juri Jenkner set to take over as co-CEOs on 1 January 2027.

Deals keep coming

Despite the market's reticence, the firm has not slowed its transaction activity, focusing on select real estate assets and on equipping existing portfolios with new structures. In the UK, Partners Group expanded its education-sector footprint on 18 September alongside Aboria Capital, acquiring a 1,570-bed student housing portfolio from HSBC Asset Management for 165 million pounds. The purchase was made through a joint venture that includes additional investors.

The move reflects an appetite for defensive segments with steady demand. At the same time, management is turning its attention to liquidity for existing clients.

A continuation vehicle for private credit

According to Bloomberg, Partners Group is weighing the transfer of roughly 800 million euros in private credit loans into a continuation fund. Under that plan, investors in the existing funds could either roll their holdings into the new structure or exit. Such vehicles are gaining traction when regular fund terms expire or when investors seek liquidity early. For the manager, the model keeps fee-generating loans under its wing without losing the backing of fund investors.

What matters for a sustained recovery in the share price is how quickly the firm can return to earlier earnings levels. As long as analysts keep cutting their profit forecasts, the room for a re-rating stays limited.