Partners Group Raises €6B For Direct Private Equity Program

Jul 27 2017 | 11:08pm ET

Partners Group received record capital commitments for its latest direct private equity fund, raising €6 billion from public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds and foundations.

The 2016/17 fundraising effort consists of flagship program Partners Group Direct Equity 2016, which was capped at €3 billion, and €3 billion of additional capital committed to direct private equity.

Investors in the program constitute a mix of new and existing clients, the company said in a statement, as well as a combined 5% commitment in the Partners Group Direct Equity 2016 program by founders, partners, and other employees. 

The new fund is the successor to Partners Group Direct Investments 2012, which closed in early 2014 and has a net IRR of 23.9%. As with the earlier vintage, Partners Group Direct Equity 2016 will be deployed globally on behalf of investors in mid-market and select large-cap companies across a broad range of industry sectors, including healthcare, education, business services, information technology, industrials, and consumer. Several investments have already been made, the company added.  

“In a sluggish macroeconomic environment, we are concentrating our efforts on specific market niches that are experiencing above-average growth,” said David Layton, Partner and Head of Private Equity at Partners Group, in the statement. “Within these pockets of growth, we look for companies with recurring revenue streams and highly visible cash flows, which are not only well-positioned to perform during a variety of economic scenarios but show significant upside potential and a clear path to value creation.”

Among the transformative trends prioritized within Partners Group’s current relative value outlook are the rise of outsourcing in healthcare and information technology, the digitalization of business services and consumer companies, and the emergence of new business models in consumer services and social infrastructure.

Zug, Switzerland-based Partners Group is a global private markets investment manager, serving over 900 institutional investors worldwide and managing more than $66 billion in assets. Since inception in 1996, the firm has invested more than $80 billion in private equity, real estate, private debt and infrastructure.

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