KKR has overtaken Partners Group to become Europe’s largest manager of open-ended private market funds by assets, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). KKR had €13.6bn ($15.6bn) across its European-domiciled evergreen platforms at the end of the first quarter, compared with €13.4bn for Partners Group, according to data from industry research firm Novantigo cited by KKR, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/).
Q1 assets: KKR at €13.6bn versus Partners Group at €13.4bn
KKR’s €13.6bn figure and Partners Group’s €13.4bn figure refer to European-domiciled evergreen platforms at the end of the first quarter, according to Novantigo data cited by KKR, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). The report described KKR as a US private equity firm and Partners Group as a Swiss rival contending with elevated investor withdrawals.
KKR wealth-management expansion and European evergreen launch
The article reported that KKR is expanding its wealth-management business while Partners Group contends with elevated investor withdrawals, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). Markus Egloff, identified as a KKR managing director and head of global wealth solutions international, said the firm had recently become the leading European evergreen manager and highlighted the rapid expansion of KKR’s private-wealth business.
KKR launched its first European-domiciled evergreen vehicle for wealth investors in May 2023, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). The article said KKR has since expanded its presence in Switzerland, where alternative asset managers have established operations to build relationships with private banks and gain access to wealthy individual investors.
Broader shift toward semi-liquid structures and related liquidity issues
The report said the growth of evergreen private-market funds reflects efforts by private equity firms to broaden their investor bases beyond traditional institutions, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). The article said that, with institutional allocations to private markets facing constraints in some markets, asset managers have increasingly targeted high-net-worth and retail investors through semi-liquid structures.
The article said the expansion has also exposed managers to a different set of liquidity challenges. It reported that private credit and other evergreen vehicles have faced increased redemption requests this year amid concerns around credit quality and the potential impact of artificial intelligence on software businesses held by private equity investors.
Partners Group redemption limit and KKR redemption pressure
The article said Partners Group has been particularly affected by withdrawal pressure, according to Private Equity Wire (https://www.privateequitywire.co.uk/kkr-overtakes-partners-group-as-europes-largest-evergreen-manager/). It reported that the Swiss-listed private equity firm imposed a redemption limit on its flagship $14.5bn evergreen fund after a surge in investor requests.
The report said the move highlighted the liquidity challenges inherent in open-ended private-market structures that offer investors more frequent exit opportunities than traditional closed-end private equity funds while investing in comparatively illiquid assets. The article also reported that KKR has faced redemption pressure in some of its private credit vehicles, and that KKR has said demand subsequently moderated after withdrawal requests reached applicable limits.
