Partners Group's Two-Pronged Offensive: A Billion-Dollar Power Play and a French Beauty Prize

Partners Group invests $1B+ in UK data center power firm AVK, enters exclusive talks for Aroma-Zone, and boosts portfolio via AI.

The Zug-based private markets firm is making it clear that a turbulent year on the stock exchange will not slow its acquisition engine. Within the span of a single day, Partners Group unveiled a majority stake in a British data center power specialist while simultaneously entering exclusive negotiations to acquire a French cosmetics darling — a one-two punch that underscores the firm's appetite for growth stories in both digital infrastructure and consumer brands.

Powering the AI Boom

The larger of the two moves centers on AVK Power Solutions, a UK provider of electricity infrastructure for data centers. Partners Group plans to inject more than $1 billion in equity, supplemented by debt financing, to accelerate the company's expansion. The investment will be channeled through the firm's fourth direct infrastructure program, which recently closed with commitments exceeding $15 billion.

The timing is strategic. With artificial intelligence driving an insatiable demand for computing capacity, the energy requirements of digital infrastructure have become a structural growth story. AVK's existing management will retain a minority stake, keeping operational continuity intact as the company scales.

A Scent of Opportunity in France

On the consumer side, Partners Group has entered exclusive talks with Eurazeo over the acquisition of Aroma-Zone, a French natural cosmetics brand. While a final agreement has yet to be signed, the exclusivity of the discussions signals advanced negotiations. Eurazeo is expected to generate gross proceeds of roughly €576 million from the transaction while retaining a significant minority position in the brand.

Aroma-Zone's trajectory is impressive: the company has tripled its revenue since 2021 and expanded its customer base to more than five million. Partners Group is no stranger to the business — it has served as a lender to the company since 2021, giving it intimate knowledge of the brand's operations and growth potential.

AI-Driven Gains Within the Portfolio

Beyond new acquisitions, Partners Group is extracting value from existing holdings. At Foundation Risk Partners, a US insurance broker, an AI transformation program delivered a 120-basis-point improvement in EBITDA margin, translating to a $10 million financial impact. The initiative was executed in collaboration with Version 1, a British digitalization specialist that also sits in Partners Group's portfolio — both companies were acquired in 2022.

Such efficiency programs are becoming an increasingly important lever for private equity firms, offering a path to enhance returns on existing investments without deploying additional capital.

A Mixed Picture on the Fundraising Front

The firm's broader fundraising efforts show momentum in certain areas. On July 23, Partners Group closed an infrastructure secondary program with commitments of more than $5.5 billion. The royalty strategy, launched only in early 2024, has grown its assets under management by 50 percent in six months to $1.5 billion, now comprising 53 investments — eight added this year alone, including a financing backed by the licensing rights to the TV series "South Park."

Yet the half-year update delivered in mid-July painted a more nuanced picture. Client commitments of $16.0 billion in the first half exceeded expectations of $14.0 billion, while assets under management of $186 billion roughly matched consensus. However, performance fees are expected to account for less than 20 percent of total revenues in the first half — well below the medium-to-long-term target corridor of 25 to 40 percent — due to reduced divestment activity and weaker portfolio performance in mature evergreen strategies.

Market Reaction and the Road Ahead

The market has responded favorably to the recent deal announcements. The share price closed Friday at €788.60, up 2.28 percent on the day, bringing the seven-session gain to 9.01 percent. That recovery, however, only partially offsets the damage done this year. The stock remains 36.40 percent below its 52-week high of €1,240.00, and is still down 25.67 percent year-to-date.

The mid-July turbulence was particularly stark: on July 16, the shares tumbled 7 percent before stabilizing around CHF 680. That sell-off followed the mixed business update and prompted CEO David Layton to announce that the board would debate the balance between share buybacks and dividends at its next meeting.

Analyst sentiment had also cooled in early July, when UBS downgraded the stock from Buy to Neutral, cutting its price target from CHF 1,175 to CHF 705, citing negative earnings momentum and expectations of further restrictions on mature evergreen funds. The Zürcher Kantonalbank had similarly estimated first-half assets under management at $186 billion — below the then-consensus of $189.9 billion — with higher projected redemptions of $5 billion versus a $4 billion consensus.

All eyes now turn to September 1, when Partners Group will release its full half-year results. The press release is scheduled for 07:00 CET, followed by a presentation at 10:00. Those numbers will reveal whether the recent flurry of deal-making is translating into operational momentum — and whether the shares can build on their tentative recovery.