Partners Group Faces $7 Billion Debt Wall as 3 Portfolio Companies Near Crisis

Partners Group is facing mounting pressure to refinance roughly $7 billion (€6 billion) in debt across three struggling portfolio companies, raising creditor concerns about whether the private equity firm can support all three at once.

The asset manager must extend or refinance debt at Emeria SASU, Ammega Group BV and Breitling AG, Bloomberg reported. Each company has billions of euros in borrowings maturing in 2028, leaving a narrow window to address the financing needs.

The Swiss firm manages roughly $185 billion across private equity, private credit, infrastructure and real estate. It has faced rising investor withdrawals in recent months amid broader concerns about the private credit industry.

Investors are now trying to gauge whether the firm has both the willingness and financial resources to support all three businesses, or whether it could be forced to choose which companies receive priority. 

The challenge comes as debt issued by all three companies has traded at significant discounts to face value, signaling heightened concern among credit investors. Their credit ratings have also fallen to junk status, Bloomberg noted. The company has also marked down the valuations of Ammega and Emeria, noting softer market conditions and weaker operating results.

Creditors have noted that Emeria, the French property management firm, carries approximately $4.1 billion of debt, following a period of "funding expansion."

Partners Group has considered a plan to inject approximately $200 million into the company, but some bondholders feel that this amount would fall short, estimating that Emeria needs $585 million to $702 million to bring its debt burden down to a more sustainable level.

Partners Group will hold its earnings call on Sept. 1.

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