Global private markets investment manager Partners Group has raised 375 million euros ($483.7 million) for the private debt market. The fund will focus on senior loan-focused private market credit strategies and private debt mandates.
Partners Group, the global private markets investment manager, has seen heightened demand from clients seeking to access the private debt market, with 375 million euros ($483.7 million) recently raised for this segment.
With banks and other debt providers leaving the market due to capital constraints, regulatory changes and expiring investment periods for European CLO vehicles, the overall supply of private debt continues to decrease. At the same time, demand for debt is increasing due to both the upcoming need for refinancing as well as the continued investment activity by private equity funds. This supply/demand imbalance creates opportunities in conservative capital structures with historically high loan spreads.
Partners Group Private Markets Credit Strategies 2012 is an innovative investment structure with a focus on providing senior debt financing to mid-market companies. Combined with a quick ramp-up period of twelve months, the program offers attractive return potential within a shorter duration than traditional private market offerings and Partners Group intends to offer similar programs to its institutional clients on a regular basis in the future.
René Biner, Partner and Head Private Finance, comments: “We are pleased to see our clients seizing the compelling opportunities currently available in the private debt market. We are witnessing a transition in global credit markets and private providers of credit can benefit significantly from the lack of alternative capital. We believe the crisis will continue to keep markets busy in the years ahead. While the private debt supply/demand imbalance creates opportunities that are attractive in their own right, they are even more appealing relative to the public/government debt markets in today’s low interest rate environment.”
About Partners Group
Partners Group is a global private markets investment management firm with over EUR 25 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 600 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a market capitalization of over CHF 5 billion, with a clear majority owned by its partners and employees.