A London-listed private equity vehicle managed by Partners Group is heading toward an orderly wind-down after shareholders overwhelmingly opted to have their investments sold and returned as cash, according to Private Equity Wire. Investors representing almost 75% of Partners Group Private Equity Ltd’s shares selected the liquidation option, prompting the board to abandon a previously proposed two-class structure and instead seek shareholder approval for a wind-down at a meeting on 7 October, according to Private Equity Wire.
Shareholders choose liquidation; board pivots away from two-class plan
Partners Group Private Equity Ltd is managed by Partners Group and is listed in London, according to Private Equity Wire. The board had previously proposed a two-class structure, but it abandoned that proposal after shareholders representing almost 75% of the shares selected liquidation, according to the same report. The board is now seeking shareholder approval for an orderly wind-down at a meeting scheduled for 7 October.
Listed trust background and discount dynamics
Partners Group Private Equity has been listed on the London Stock Exchange since 2007 and provides retail investors with access to the Swiss firm’s private markets strategies, according to Private Equity Wire. The report adds that, like other listed private equity trusts, its shares can trade at substantial discounts to the value of the underlying portfolio, which can create an additional challenge for investors seeking liquidity.
As widely known context, listed closed-end investment companies can trade above or below their reported net asset value depending on market demand and liquidity.
Portfolio write-downs cited in report
The portfolio has faced investment write-downs this year, including holdings in European real estate services provider Emeria and industrial power transmission and conveyor belting company Ammega, according to Private Equity Wire. Partners Group has also written off its investment in healthcare business Pharmathen, the report says.
The decision to pursue a wind-down comes as Partners Group restructures investment vehicles containing older private equity assets that have struggled amid higher interest rates and weaker exit markets, according to the same report.
Broader liquidity actions at Partners Group
The proposed wind-down is described as coming as Partners Group attempts to address broader liquidity challenges across its private markets business, according to Private Equity Wire. The report says a number of wealthy investors in the firm’s evergreen private equity products have sought withdrawals, and that this has forced the manager to impose redemption restrictions.
Partners Group said the proposed solution would address structural issues associated with listed investment vehicles while replicating the characteristics of a traditional closed-end private equity fund, according to the report. Partners Group also said several institutional investors in the vehicle had indicated they would continue investing with Partners Group through other strategies.
The Swiss manager is also restructuring a €6.6bn flagship private equity vehicle to balance the competing needs of investors seeking liquidity and those prepared to remain invested, according to Private Equity Wire. Older assets are being moved into a portfolio focused on generating liquidity through disposals, while a smaller portfolio will concentrate on new investments and seek higher returns for longer-term investors, the report says.
Partners Group manages approximately $186bn across private equity, private credit, infrastructure and other private markets strategies, and it has been under pressure as investors reassess the liquidity and performance of private equity products aimed at individual investors, according to Private Equity Wire.
