Partners Group's Lending Engine Keeps Firing Even as Success Fees Stall

Partners Group closed its 23rd 2026 European direct-lending deal with a EUR 300M+ MDT financing, as H1 revenue fell 7% and exit fees stayed weak.

Partners Group is leaning hard on its credit franchise to offset a rough patch in performance income, rolling out a senior financing package worth more than EUR 300 million for MDT technologies through its direct-lending strategy. The deal marks the 23rd close of 2026 for the firm's European direct-lending vehicle, pushing total capital deployed in that segment to just under EUR 2 billion so far this year — a clear signal that demand for alternative credit structures outside the traditional banking channel remains robust.

That lending momentum sits alongside a busy stretch of strategic activity. On September 15, the Swiss asset manager struck a partnership with sports talent agency SEG, becoming its largest external shareholder with a mandate to fund further expansion and diversification of the platform. Regulatory matters have moved forward too: the European Commission cleared Partners Group's acquisition of a majority stake in French aroma and cosmetics specialist Aroma-Zone, alongside co-investor Eurazeo. Press reports put the enterprise value of that transaction at roughly EUR 2 billion. Brussels raised no objections, reasoning that Eurazeo was already the company's controlling shareholder. Partners Group had confirmed exclusive talks over the majority takeover on August 6.

The Aroma-Zone green light follows the September 2 completion of the atNorth data-center acquisition, executed together with Equinix and the Canada Pension Plan Investment Board — another entry in a lengthening list of strategic purchases. On the governance side, Swiss financial regulator Finma elected CFO Joris Gröflin to the takeover commission.

Portfolio Housekeeping in Private Credit

Beyond new commitments, Partners Group is tending to its existing book. According to Bloomberg, the firm is weighing a transfer of roughly EUR 800 million in private-credit loans into a continuation vehicle. The loans originate from five of the company's funds, and existing investors would be given the choice of rolling their exposure into the new structure or cashing out.

A Fee Engine Under Strain

None of this activity has shielded the firm from a difficult year. First-half business revenue fell 7% to CHF 1.12 billion, while EBITDA slipped to CHF 706 million. The drag came chiefly from a weak market for company exits, which hit performance fees hard and weighed on both overall revenue and margins. Management responded by trimming its guidance: for full-year 2026, it now expects performance income to account for just 20% to 25% of total revenue. Even so, the firm pulled in USD 16 billion of new client money in the first half, enough to reaffirm its target range for total capital commitments.

A leadership reshuffle is also in the works. Roughly three weeks ago, Partners Group announced that Roberto Cagnati and Juri Jenkner will take over as co-CEOs on January 1, 2027, with current chief David Layton moving into the chief investment officer role.

Shares Off the Floor

The stock has been stabilizing after a bruising stretch. In Friday's session it traded at EUR 632.60, up 1.5% from its 52-week low, though still down 40% since the start of the year. A separate reading put the shares at EUR 638.80, a gain of 1.2% on the day. Whether the valuation can mount a durable recovery will hinge largely on how quickly the market for exits — and the lucrative performance fees they generate — comes back to life. The firm's annual results, due March 16, 2027, should offer a clearer picture.