Investors in Partners Group’s flagship US private equity master fund requested $2.2bn of withdrawals in the third quarter, equivalent to 15% of net assets and more than double the previous quarter’s total, according to Private Equity Wire. The publication reported that the figures were cited in a Financial Times report.
Requests rose from $900m in Q2; withdrawals capped at 5%
Redemption requests rose from $900m, or around 6% of assets, in the second quarter, according to Private Equity Wire. Partners Group capped withdrawals at 5% in both the second and third quarters, exercising the fund’s liquidity limits as requests exceeded the permitted threshold.
Partners Group said the latest requests were consistent with guidance issued in July, according to the same report. The firm said the requests reflected patterns typically seen after evergreen funds impose redemption limits.
Analysts cited softer performance and increased competition in US wealth
BNP Paribas analysts reportedly pointed to softer performance and increased competition from new evergreen products in the US wealth market, according to Private Equity Wire. The report described these factors in the context of withdrawal requests for the firm’s flagship US private equity master fund.
European evergreen fund restructuring and broader review of vehicles
Partners Group has announced plans to restructure its €6.6bn European evergreen private equity fund by separating older, weaker-performing assets from newer investments, according to the report. The firm is considering similar changes to other evergreen vehicles.
Partners Group’s shares have fallen around a third this year amid performance concerns and withdrawal pressure, according to the report.
Evergreen funds are designed to offer periodic subscriptions and redemptions, and some structures include liquidity limits that can cap withdrawals during periods of elevated demand, which is widely known in private markets.
