Partners Group caps redemptions; shares fall 16%

Partners Group capped withdrawals from its $8.6 billion Global Value SICAV after total net redemption requests in the second quarter exceeded the fund’s 5% of net asset value limit, automatically triggering withdrawal restrictions. The action pushed Partners Group shares down about 16% in Zurich and weighed on listed alternative asset managers in the United States and Europe. In U.S. trading, Blackstone fell about 4.5%, KKR dropped roughly 4.2%, Ares Management declined about 4.3% and Blue Owl fell about 2.9%. In Europe, EQT slid 6.5%, CVC Capital Partners fell 7.5% and Bridgepoint declined about 9.8%.

The Global Value vehicle holds a mix of private equity and other private market assets. A March filing showed four of its 10 largest direct holdings are technology companies. The firm attributed the cap to elevated investor redemptions rather than any operational issue with the fund.

Partners Group reported the fund’s liquidity remained within its targeted range, supported by ongoing distributions and access to an undrawn credit facility. The firm added that both the Global Value Fund and its underlying vehicle remain open to new investments.

Chief Executive David Layton said, “This feature of capping redemption requests at 5% of the fund is a key attribute of this fund. It’s known that in an environment where investors get a little bit more skittish, like today, you won’t see huge amounts of outflows.”

KKR faced additional pressure from concerns tied to its credit operations. Fitch maintained a negative outlook on FS KKR Capital Corp., citing ongoing asset quality issues. Legal developments and class-action reminders alleging overvaluation within certain managed funds have drawn attention to portfolio valuations. Analysts have lowered earnings expectations for KKR, and the firm’s recent $900 million debt sale priced at a 7.5% coupon highlighted higher funding costs.

Partners Group noted that volatility which first emerged in private credit has increasingly affected private equity. The company highlighted that limited transparency around holdings in many private credit and private equity funds has complicated efforts to assess underlying portfolio quality.