Partners Group has cut or reassigned dozens of positions within its global private equity division as the Swiss alternative asset manager seeks to improve performance amid investor scrutiny, according to Private Equity Wire. The report said the moves were described as affecting employees across multiple seniority levels within the division and followed a performance review, according to Private Equity Wire.
Scope of the restructuring
The restructuring has affected the firm’s global private equity division, which employs more than 200 people and is led by Wolf-Henning Scheider, according to Private Equity Wire. The report said some employees have left the firm, while others have transferred to Partners Group’s infrastructure and royalties businesses.
Partners Group said its private equity headcount remained consistent with its long-term average, and it said it had strengthened senior operational capabilities over the past year, according to the same report.
Performance pressures and investor scrutiny
The changes come as Partners Group faces pressure over returns from older private equity investments, according to the report. The report also cited elevated redemption requests from investors in the firm’s evergreen products.
Partners Group manages approximately $186bn in assets, according to the report. The report said the firm has faced investor concerns over portfolio valuations and the pace of distributions.
As widely known context, listed private markets managers have faced increased scrutiny when valuations and distributions lag, particularly in periods of higher redemption demand.
Portfolio developments cited in the report
Among portfolio challenges referenced in the report, Partners Group has written off its investment in pharmaceutical company Pharmathen, according to Private Equity Wire. The report also said the firm is discussing handing control of German toy manufacturer Schleich to creditors.
The report said Partners Group has also considered providing additional capital to French real estate services business Emeria.
Evergreen fund actions and market performance
Partners Group shares have declined approximately 40% this year amid broader pressure on listed private markets managers, according to the report. In response to redemption requests, the firm has reportedly proposed restructuring its €6.6bn Global Value SICAV evergreen fund into two portfolios, according to the report.
The report said the proposed restructuring is intended to provide liquidity for investors seeking redemptions while allowing longer-term investors to retain exposure to the newer assets.
