KKR overtakes Partners Group as Europe’s largest evergreen manager
KR has overtaken Partners Group to become Europe’s largest manager of open-ended private market funds by assets, as the US private equity firm expands its wealth-management business while its Swiss rival contends with elevated investor withdrawals, according to a report by Bloomberg.
In the latest development, KKR has overtaken Partners Group to become Europe's largest manager of open-ended private market funds, as per a Bloomberg report. This milestone was achieved despite the Swiss rival experiencing heightened investor withdrawals, according to data from Novantigo.
As of the end of the first quarter, KKR held €13.6 billion ($15.6 billion) across its European-domiciled evergreen platforms, surpassing Partners Group's €13.4 billion, cited by the firm.
Markus Egloff, KKR's managing director and head of global wealth solutions international, confirmed the firm's ascent to the top spot, underscoring the rapid expansion of its private-wealth business. In May 2023, KKR launched its first European-domiciled evergreen vehicle for wealth investors and has since broadened its operations in Switzerland.
The surge in the popularity of evergreen private-market funds is a strategic move by private equity firms to diversify their investor base beyond traditional institutions. As institutional allocations to private markets face limitations in certain regions, these firms are increasingly targeting high-net-worth and retail investors through semi-liquid structures. However, this expansion has also introduced new liquidity challenges for managers, particularly in the realm of private credit and other evergreen vehicles.
Partners Group, in particular, has been grappling with a surge in investor redemption requests. The Swiss-listed firm had to impose a redemption limit on its flagship $14.5 billion evergreen fund amid the surge in withdrawals. This move highlights the inherent liquidity challenges associated with open-ended private-market structures, which offer investors more frequent exit options than traditional closed-end private equity funds, while investing in comparatively illiquid assets.
Despite facing redemption pressure in some of its private credit vehicles, KKR has indicated that demand has moderated since withdrawal requests reached applicable limits.
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