Partners Group raises €6bn for direct private equity

Oscar Geen
27 July 2017

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Partners Group has raised €6bn for direct private equity investments, comprising a €3bn fund close and €3bn in other commitments.

Partners Group Direct Equity 16 has closed on €3bn after holding a first close on €1.5bn in February 2017.

The GP has simultaneously announced an extra €3bn of commitments raised for client mandates and commitments to other vehicles.

The main vehicle is currently 25% deployed across seven investments, according to unquote" data.

It will target a net IRR in the mid-teens, according to the GP. The previous fund, Partners Group Direct Investments 2012, which closed on €1.5bn in February 2014 reported a net IRR of 23.9% and was 90% deployed as of December 2016, according to unquote" data.

The management fee will be 1.5% of commitments, with a 100% catch up being triggered after an 8% hurdle until the GP receives 20% of the distributed preferred return at which point the split is 80-20.

Click here for a full profile of Partners Group Direct Equity 16, including a comprehensive list of LPs and investments, on unquote" data

Investors
Investors in the program comprise new and existing LPs, including public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds and foundations from around the world. Partners Group's founders, partners, employees and affiliates are making a commitment of 5% to Partners Group Direct Equity 2016.

Investments
As with its predecessors, Partners Group Direct Investments 2016 will target companies across a range of geographies and sectors in the mid-market – a segment "home to the best opportunities for finding reasonably priced assets", according to the investor.

The fund has already made a number of investments, including the €1.8bn buyout of French real-estate company Foncia, US-based IT services company Curvature, laboratory operator Cerba HealthCare and Aavas Financiers, an Indian housing loan company.