New direct equity fund boosts PE inflows for Partners Group

The new commitments have been collected via several different vehicles, including Partners Group Direct Equity 2019, liquid strategies, and customised mandates.

The Swiss manager expects that the new direct equity fund will continue to contribute to its fundraising volumes over the next 12-18 months.

Private equity has been the second fastest growing asset class, delivering 11% net growth, just behind private debt, which experienced 12% net growth over the same period. Direct lending and collateralised loan obligations have been the two main drivers for private debt's growth.

Across all the private markets, the GP secured €7.4bn in new money, resulting in total AUM of €79.7bn, up from €72.8bn in December 2018.

On the secondaries side, Partners Group is focusing on younger vintage situations after the market was dominated for years by pre-crisis large buyouts, co-CEO David Layton told Unquote, following a question on Partners Group's AUM conference call today.

"We are pursuing a number of smaller transactions that are a little bit younger in terms of vintage," said Layton. "On the other side, we are having success with larger sellers with very complex portfolios, where our competitors are trying to buy out individual segments of their portfolio, but we are able to leverage the global breadth and all the multi-asset class experience that we have taken from the entire portfolio and offer a one-step solution. And we have been successful in completing a number of transactions in the second half of 2018 and first half 2019, leveraging that strategy."

The manager's private markets portfolio consists of 50% private equity, 22% private debt, 16% private real estate, and 12% private infrastructure.

Partners Group has $6.9bn invested in private markets, out of which $2.3bn is invested in direct equity, $1.8bn in debt, $1.4bn in secondaries, and the rest with select best-in-class managers in the private markets industry.

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