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🚨 Bang for the buck at Partners Group: -12%

https://www.swissinfo.ch/eng/partners-caps-evergreen-fund-redemptions-as-requests-rise/91517861

The share price falls by double digits following a Bloomberg report. That's what's behind it:

The trigger ("gating"): Partners Group $PGHN (+3,1 %) is now limiting withdrawals from its USD 8.6 billion Global Value SICAV Fund. Quarterly redemptions will be capped at 5% of the fund volume.

Why? The "flight" of investors was simply too great. In Q2, investors (especially nervous private wealth clients) wanted to withdraw a whopping 9.8% of their capital. Since private equity invests in illiquid companies, you can't simply conjure up the money overnight and pay it out.

Short sellers in the right? As recently as April, the short seller Grizzly Research accused Partners Group of overstating the valuations in precisely these funds by up to 40%. The fact that liquidity is now drying up is naturally giving the short-seller story a massive boost on Wall Street.

Conclusion: Partners Group is of course not fundamentally broke (15% cash ratio + credit lines available). But in asset management, trust is the only hard currency. If the doors are closed, it will be a psychological disaster. This will set back growth and performance fees for the time being.

Is this a good opportunity to buy a highly profitable asset manager or is this just the beginning?

9 Commentaires

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

Basically a private credit problem at the moment. It's just a question of how Partners Group will continue to deal with it. I saw the fall in the share price and was initially puzzled. Basically, I think $PGHN is one of the better/best asset managers. But news like this is of course absolutely fatal. I'll re-evaluate my position and the current CRV and see what conclusion I come to. You have them in your portfolio too, don't you?

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finanzperpetuum@finanzperpetuum

@Get_Rich_or_Die_Tryin Yes, I have them in the depot, and I'll see what the reactions from the company are.

The fund investors were certainly aware of this, and I think Partners Group is absolutely legally protected here - the gating is there precisely for such situations, to prevent an emergency sale of company shares below value. The fact that this happens in extreme cases is certainly written in bold letters in the fund prospectus. But as long as the markets are rising, nobody reads it. Now that the risk is real, everyone is surprised.

The problem for us as Partners Group shareholders is not that the structure is failing, but that the image of the "convenient, liquid private equity investment for everyone" is cracking. And that could put a noticeable brake on future new business with private clients and thus reduce management fees. We may see this in September with the next figures. I remain relaxed ....

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fund_manager_2216@fund_manager_2216

@finanzperpetuum
I find the current discussion about liquidity, gating and the private client business particularly exciting because it shows how resilient the business model really is in difficult market phases.
Fundamentally, I still consider Partners Group to be a very high-quality company with a strong market position in the private equity sector. The question for me is not so much whether the current situation jeopardizes the structure, but rather what impact it could have on future growth and cash inflows.
As the share has recently come under considerable pressure, I am actually considering entering with an initial small tranche and gradually expanding the position in the event of further weakness. I'm still a 19 year old student and just starting to build up my portfolio, do you have any other tips and would it be feasible to enter the market now?

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finanzperpetuum@finanzperpetuum

43Min

@fund_manager_2216 No tips or recommendations, we only share opinions here 🤓

I bought more this morning and it will certainly not be the last small investment in the company. If you look at the performance fees and target the lower end for 2026 as expected by PartnersGroup itself (25-40% of sales), I think you get a P/E ratio of around 15. With the new products announced (Total Return Strategy) and today's press release ... do the math 😎

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Brian@Aktienhauptmeister

I am interested myself, but I would wait and see how the management deals with the situation and how they will handle it.

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Jonas@Jonasbrunner

I am also invested. Definitely see it as an opportunity to buy in the short to medium term. The performance will return over time (as is the case almost everywhere), the company simply has too much substance and reputation for a "crash". And last but not least, a Swiss company doesn't just go down like that (except CS🙈)

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GeldGenie@GeldGenie

I'll buy more if necessary! For me, the panic is absolutely exaggerated...

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Olli@Olli68

In my opinion, $PGHN 's aggressive push into the private customer sector was a mistake, as it attracted weak hands that are now reacting in panic. In addition, the almost one-sided investment in the recently weakening software sector is weighing on performance. The fact that investors now want to withdraw 9.8% of their capital impressively confirms these fears.

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finanzperpetuum@finanzperpetuum

23H

@Olli68 The stability of the business with clients such as sovereign wealth funds or pension funds was simply sacrificed for rapid growth in assets under management (AUM) and the wrong clients were combined with the wrong assets. We will take a look at the effects ...

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