Partners Group’s Record $16 Billion Haul Can’t Mask the $3.8 Billion Leak in Its Evergreen Engine
Published on 07/23/2026 at 08:12 | Redaktion boerse-global.de
Partners Group pulled in a record $16 billion in capital commitments during the first half of 2026, nearly a third more than the $12 billion it raised in the same period last year. But the headline number masks a deepening fissure in the Swiss private-equity giant’s business model: its evergreen funds, designed to give retail investors access to private markets, hemorrhaged $3.8 billion in net outflows over the same six months.
Assets under management still climbed to $186 billion as of June 30, up from $174 billion a year earlier, and the firm reaffirmed its full-year guidance for gross new money of between $26 billion and $32 billion. Yet management conceded that redemptions from the semi-liquid products would shave 1 to 2 percentage points off growth. The warning landed with particular weight because Partners Group also flagged that performance fees would likely fall below 20% of total revenue in the first half — well short of its self-imposed target range of 25% to 40%.
Analyst Skepticism Hardens
The mixed signals prompted a flurry of analyst downgrades. UBS cut its rating on the stock from Buy to Neutral on July 12 and slashed its price target from 1,175 to 705 Swiss francs, citing margin compression and liquidity risks tied to the evergreen structures. Barclays followed suit the same day, trimming its target from 1,200 to 940 Swiss francs, according to Bloomberg. Citigroup, meanwhile, warned on July 16 that if redemption requests in the evergreen funds persist or accelerate, the outlook for AuM growth could darken further.
The market has already delivered its verdict. Shares closed at €723.00 on Wednesday, down 1.74% on the day and 31.86% since the start of the year. The stock now sits just 5.27% above its 52-week low of €686.80, touched in late June, and a 30-day annualized volatility reading of nearly 33% underscores the jitters. The relative strength index of 41.8 points to a market that is weak but not yet oversold.
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Infrastructure and Legal Maneuvers
On the investment front, the firm closed its Partners Group Direct Infrastructure IV program at over $15 billion — a volume roughly in line with its 2021 and 2024 vintages, signaling that institutional appetite for closed-end infrastructure funds remains robust even as the evergreen channel sputters. The company also deployed capital on behalf of clients, investing £260 million in a UK rail leasing platform and taking a stake in Avenue Capital Group’s global commercial aviation leasing portfolio.
But the evergreen drama has spilled into the courtroom. Partners Group announced it would take legal action against short-seller Grizzly Research, which had leveled allegations about asset valuations in the evergreen funds. The move, reported by the NZZ, adds a layer of legal uncertainty to an already tense debate over how the firm marks its semi-liquid holdings.
Debt Markets Still Open
Despite the turbulence, S&P Global Ratings assigned preliminary ratings to floating-rate notes issued by Partners Group Private Credit CLO 1, a vehicle managed by the firm’s U.S. subsidiary — a sign that credit markets remain accessible. In its mid-year outlook, Partners Group struck an optimistic tone for the second half, predicting a recovery in private-markets activity and pointing to the potential for a “productivity boom” driven by artificial intelligence.
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Still, the company had to extend the deadline for its ongoing share buyback program to September 2026 after a negative free cash flow in the second quarter. The extension suggests that even as the firm celebrates record fundraising, the cash-flow mechanics of its evergreen business are creating real friction.
All eyes now turn to September 1, when Partners Group will release its full half-year report with detailed financials. Only then will investors learn whether the record $16 billion in commitments can offset the drag from $3.8 billion in outflows and a performance-fee shortfall — or whether the evergreen engine has become a liability that no amount of new money can fix.
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