Partners Group has closed its latest secondaries fund with €537 million in capital commitments. The Switzerland-based firm had been targeting €500 million.
Partners Group, the Switzerland based private markets investment manager, has successfully closed Partners Group Global Value 2008 at EUR 537 million, thereby exceeding the target of EUR 500 million set for the fund and demonstrating continued strong client interest in the current attractive investment environment.
Capitalizing on the opportunities available over the past quarters, the fund has invested throughout the market crisis. The beginning of the market downturn brought about highly attractive opportunities in the secondary segment due to the acute distress experienced by a number of market participants and the fund has invested almost half of its commitments so far in secondary opportunities. These include a portfolio of assets acquired from an established institutional investor at a discount of 58% to net asset value. Partners Group was able to pick the most attractive assets out of the portfolio due to its knowledge of the underlying investments, with its rapid execution capabilities allowing the due diligence to be completed in two weeks, thus preempting efforts to conduct an official auction process.
In addition to the secondary market, highly interesting propositions are appearing in direct investing. Amongst others, Partners Group has jointly led investments in Oasis Dental, the only privately-owned dentistry group in the UK serving an equal mix of NHS and private patients, and in Kaffee Partner Holding GmbH, a leading distributor of coffee and water dispensers in the German SME market. The investment in Oasis Dental will facilitate the growth plans pursued by the firm’s experienced buy-and-build management team, who are targeting a number of acquisitions as well as NHS new builds. Kaffee Partner holds a leading position in its market and has a strong, sales oriented business model. The investment will support the expansion strategy the company intends to pursue in the coming years.
Dr. Stephan Schäli, Partner and Chairman of the Global Portfolio Investment Committee, comments, “We are confident that the investments we have already completed for the benefit of the investors in the fund should prove successful and have additionally been careful to reserve investment capacity to take advantage of any opportunities appearing in the coming months. Although the secondary market remains active, the bid-ask spread has begun to narrow as the market distress has subsided and making the correct investment decisions requires an even more in-depth approach and an understanding of each individual underlying asset. In addition, we expect to see highly attractive investment propositions in direct investments both in distressed situations requiring significant restructuring expertise as well as in value buyout opportunities in small and mid cap companies with moderate leverage which offer extensive potential for streamlining operations and future growth.”
Among the limited partners participating in the program are corporate and public pension plans, insurance companies, financial institutions and high net worth individuals from around the world.
About Partners Group
Partners Group is a global private markets asset management firm with over CHF 25 billion in investment programs under management in private equity, private debt, private real estate and private infrastructure. The firm manages a broad range of funds and customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, London, Guernsey, Luxembourg, Singapore, Beijing, Tokyo and Sydney. The firm employs over 360 people, is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 3.5 billion with a clear majority owned by its 36 Partners and all employees.