Partners Group close Pearl Holding Limited above target

01 November 2001

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Pearl Holding Limited, the Luxembourg Stock Exchange-listed convertible bond managed by Zug-based Partners Group, reached a final close at the end of September; the vehicle closed above its Euro 500m target to reach Euro 660m. Partners Group, one of the largest private equity managers and advisors in Europe with SFr 4.5bn under management, supplies a range of tailor-made private equity products for institutional clients. Other vehicles include the listed, AAA-rated, $700m 0%-convertible bond, Princess Private Equity and the SFr 550m Castle Private Equity AG, a joint venture with Liechtenstein Global Trust LGT. The Pearl Holding Limited vehicle was raised in two tranches: the first from DGZ DekaBank, which supplied Euro 485m in September 2000, and the second from Merrill Lynch which provided the remaining Euro 175m at the end of the summer, 2001. The bond is rated AAA by S&P with a guaranteed 2% coupon. This has been achieved through full capital and income protection provided by Swiss Re.

Pearl Holding Limited, a Guernsey based, closed-end investment company, invests in a diversified range of private equity vehicles. 50% of the bond will be invested in buyout funds, 40% in venture capital vehicles and 10% in special situations, primarily mezzanine funds. The geographical investment distribution will see the vehicle invest 55% in Western Europe, 35% in North America, and 10% in the rest of the world. Partners Group will also look to take secondary positions within buyout portfolios. Erik Kaas of Partners Group indicates that given the current economic climate, there are an increased number of opportunities in the secondaries market.