Partners Group is exploring a continuation vehicle of about €800m to extend the holding period for a portfolio of private credit loans, according to Private Equity Wire, citing a report by Bloomberg.
The Swiss asset manager is considering transferring loans from several of its existing private credit funds into a new vehicle, according to people familiar with the matter, per Private Equity Wire.
Continuation vehicle under consideration
The continuation vehicle would be used to extend the holding period for a portfolio of private credit loans, according to the report referenced by Private Equity Wire.
A continuation vehicle would allow Partners Group to retain exposure to the loans beyond the original life of the funds while giving existing investors a mechanism to realise their positions, according to the article.
The structure would also provide the manager with additional time to manage and ultimately exit the underlying credit investments, the report said.
Investor options: roll or take liquidity
Investors in the existing funds would have the option of rolling their interests into the continuation vehicle or taking liquidity, according to the article.
The report describes the continuation vehicle as another sign of the growing role of secondaries in providing liquidity to investors in private debt strategies.
Assets referenced for the portfolio
The assets being considered for the transaction include loans held in Partners Group’s 2018 and 2020 Private Markets Credit Strategies funds, together with investments from the fifth, sixth and seventh funds in its Multi-Asset Credit strategy, according to the report.
The Swiss asset manager is considering transferring the loans from several of its existing private credit funds into a new vehicle, according to people familiar with the matter cited in the article.
Process and potential changes
The proposed transaction remains under consideration and details of the final portfolio and structure could change before any deal is completed, according to the article.
Widely known context: continuation vehicles are a form of secondary transaction used in private markets to provide liquidity options to existing investors.
Widely known context: secondaries are often used to restructure fund exposures and extend hold periods where a manager seeks more time to manage assets.
