Partners Group plans dual-class structure for London-listed trust in bid to ease investor exits
Partners Group is to restructure its London-listed private equity investment trust, Partners Group Private Equity (PEY.L) Limited, by introducing a dual share-class framework to manage investor redemption pressure and reduce the gap between share price and net asset value.
The Swiss private markets manager Partners Group plans to restructure its London-listed private equity investment trust. The aim is to address increased investor requests for redemptions and the ongoing difference between the trust's share price and its net asset value. The investment trust, Partners Group Private Equity (PEY.L) Limited, manages approximately €800m in assets. The proposed changes will introduce a dual share-class system. This will offer investors two choices: stay with the current evergreen strategy or convert up to 30% of their holdings into a "realisation" pool, which will gradually liquidate assets and return cash over time. This initiative intends to offer more adaptable liquidity options as private markets managers experience higher withdrawal demands from their wealth and retail investor segments. It also seeks to counter the persistent discount observed in listed private equity vehicles compared to their underlying net asset values. The board asserts that this restructuring provides a direct solution to improve the alignment of the trust's structure with present market dynamics. This announcement follows a period of increased volatility in Partners Group's listed equity earlier this month, after the company restricted redemptions in a separate $8.6 billion evergreen fund due to significant withdrawal requests. Concerns about liquidity management in private markets have also led to speculation regarding potential restrictions on larger US-domiciled evergreen funds, although the firm has indicated no immediate plans for further limitations. Investor interest in private markets exposure has become more sensitive to valuation uncertainties and liquidity conditions, particularly among high-net-worth and retail investors. This has contributed to a broader increase in redemption activity across parts of the sector, with pressure extending beyond private credit into private equity strategies. The broader private equity landscape is experiencing growing risks related to software businesses facing disruption from artificial intelligence. Recent restructuring activities, including creditor-led takeovers of highly leveraged software firms, have resulted in significant equity impairments for private equity sponsors and co-investors. Shares in Partners Group declined following this announcement, reflecting continued investor caution regarding liquidity conditions and valuation support in listed private market vehicles.