Partners Group Reworks $7.4 Billion Evergreen Fund As Investors Seek More Flexibility

Partners Group plans to restructure its Global Value SICAV private equity evergreen strategy into two portfolios, giving investors more options to either compound returns over the long term or take cash from portfolio realizations.

The move comes as the Swiss private markets manager contends with elevated redemption pressure across some of its mature evergreen funds. Partners Group warned earlier this year that redemptions could weigh on net asset growth for up to 18 months and said potential net outflows from three affected strategies could reach $10 billion to $20 billion.

The firm said Friday that Global Value SICAV, which has a latest net asset value of about $7.4 billion (€6.6 billion), would move to an umbrella structure with two sub-portfolios managed by the same investment team. One portfolio would focus on compounding capital over time. The other will distribute proceeds as investments are realized. 

Partners Group intends for the new structure to give investors greater flexibility to match their private equity exposure with their liquidity needs and return objectives.

More About Global Value SICAV

Global Value SICAV has a 19-year track record and has generated a 4.5x multiple on invested capital since inception.

Existing investors would be able to maintain their current exposure, convert holdings from the distributing portfolio into the compounding portfolio or redeem shares from either portfolio, subject to the fund’s liquidity terms. The proposed restructuring still requires shareholder approval.

New investors would be able to subscribe to the compounding portfolio, which Partners Group said it would size to support efficient portfolio management and capital deployment.

The restructuring also follows Partners Group’s imposition of redemption limits on three mature evergreen strategies earlier this year, after quarterly redemption requests rose above 5%. The firm attributed the pressure to industry concerns around evergreen fund liquidity, negative media coverage and geopolitical volatility, while noting that the affected funds had significant exposure to private equity vintages from 2019 through 2022.

Partners Group said it expects to maintain a significant commitment to the broader strategy and make an additional investment in the compounding portfolio from its balance sheet alongside new institutional investors.

The firm has also undergone a leadership transition, appointing Roberto Cagnati and Juri Jenkner as co-CEOs last month, after a 39% decline in performance income. Former CEO David Layton remains in his position as chief investment officer.

“Our proposal to segment Global Value SICAV into two bespoke portfolio profiles sets up one of the most successful private equity evergreen strategies to continue compounding returns into the future. We are simplifying portfolio construction and management, enabling investors to align capital with their liquidity needs and return objectives without compromise. The long-term exposure that the compounding fund provides has already generated interest from new institutional investors," Cagnati said.  

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