Partners Group PE trust set for wind-down after investor vote

A London-listed private equity fund managed by Partners Group is set to wind down after shareholders opted for their investments to be sold and returned as cash, according to Bloomberg. Almost three-quarters of Partners Group Private Equity Ltd's shares selected liquidation, prompting the board to abandon a two-class structure and seek shareholder approval for a wind-down at a meeting on October 7.

The decision comes amid pressure on the firm as it restructures older private equity assets struggling in higher interest rate environments and weaker exit markets. Listed on the London Stock Exchange since 2007, the fund provides retail investors access to Swiss private markets strategies. However, its shares often trade at significant discounts to the value of the underlying portfolio, adding liquidity challenges for investors seeking quick returns.

The portfolio has also faced investment write-downs this year, including holdings in Emeria and Ammega. Partners Group has also written off its investment in healthcare business Pharmathen. The proposed wind-down aims to address broader liquidity issues across the firm's private markets business, with some wealthy investors in evergreen private equity products seeking withdrawals and imposing redemption restrictions.

Partners Group stated the proposed solution would tackle structural issues while maintaining traditional closed-end fund characteristics. The firm also noted that several institutional investors indicated they would continue investing through other strategies. The Swiss manager is restructuring a €6.6bn flagship private equity vehicle to balance liquidity needs and long-term returns for investors.