Partners Group cuts and reassigns dozens of private equity roles
Partners Group has cut or reassigned dozens of positions within its global private equity division due to performance pressures and investor scrutiny. Some employees have left, while others have transferred to its infrastructure and royalties businesses. The firm faces pressure over returns from older private equity investments, elevated redemption requests, concerns over portfolio valuations, and the pace of distributions. Partners Group has written off its investment in Pharmathen, is discussing handing control of Schleich to creditors, and considered providing additional capital to Emeria. Its shares have declined approximately 40% this year.
Partners Group has reportedly undergone a restructuring within its global private equity division, leading to the reduction or reassignment of numerous positions. This move by the Swiss alternative asset manager, which manages approximately $186bn in assets, is understood to be an effort to improve performance amidst increased investor scrutiny. The restructuring has affected employees across multiple seniority levels within the division, which employs more than 200 people and is led by Wolf-Henning Scheider. Some personnel have departed the firm, while others have transferred to its infrastructure and royalties businesses following a performance review. Partners Group said its private equity headcount remained consistent with its long-term average and that it had strengthened senior operational capabilities over the past year. Its shares have declined approximately 40% this year amid broader pressure on listed private markets managers. Among its portfolio challenges, Partners Group has written off its investment in pharmaceutical company Pharmathen and is discussing handing control of German toy manufacturer Schleich to creditors. It has also considered providing additional capital to French real estate services business Emeria. The changes come as Partners Group faces pressure over returns from older private equity investments, alongside elevated redemption requests from investors in its evergreen products. The firm has also reportedly faced investor concerns over portfolio valuations and the pace of distributions. In response to redemption requests, Partners Group has proposed restructuring its €6.6bn Global Value SICAV evergreen fund into two portfolios. The restructuring is intended to provide liquidity for investors seeking redemptions while allowing longer-term investors to retain exposure to the newer assets.