Swiss asset manager Partners Group may reduce the size of its evergreen funds in the future, according to Chairman Steffen Meister, while maintaining its overall strategy. This comes after the company capped withdrawals from an open-ended private equity fund, leading to a significant drop in its share price.
The potential adjustments to Partners Group's evergreen fund strategy reflect ongoing investor caution regarding alternative investments and liquidity risks, impacting the company's valuation and the broader asset management sector.
Swiss asset manager Partners Group is considering slightly reducing the size of its evergreen funds in the future, according to Chairman Steffen Meister. This potential adjustment comes after the company faced redemption pressure and capped withdrawals from an $8.6 billion open-ended private equity fund on June 3. The move reignited investor concerns about alternative investments, causing Partners Group's share price to drop around 34% this year.
Despite the market reaction, Meister told Bloomberg in an interview published Wednesday that the company does not see a need to change its overall strategy. He indicated that future open funds might be kept slightly smaller to better align with long-term flow dynamics. Rising concerns about private credit fund performance and valuations have prompted investors, particularly wealthy retail clients, to withdraw money from such vehicles, with these pressures extending into private equity.
In response to what it termed "media interest in unfounded market rumours," Partners Group issued a statement on June 12 asserting it had no intention of altering documented liquidity mechanisms or freezing its evergreen vehicles, citing healthy portfolios and sufficient liquidity. To demonstrate confidence in the firm, senior management has purchased over 60 million Swiss francs ($74 million) worth of Partners Group shares since June 3, according to stock exchange filings.