Partners Group’s 'Painful Lesson': Management Admits Communication Lapses as Redemption Fears Erase a Third of Market Value

Co-founder Fredy Gantner has delivered an unusual mea culpa. Speaking to a Swiss newspaper, he acknowledged that Partners Group must “communicate better and more proactively” after a redemption shock in its evergreen funds triggered the steepest single-day share drop in the company’s history. “We have definitely learned a painful lesson here,” he said, while branding the market reaction a “massive overreaction” that is more about an industry-wide crisis of confidence than any fundamental flaw in the firm’s strategy. Chairman Steffen Meister insisted the group’s strategic direction remains unchanged.

The crisis erupted in early June when the flagship Luxembourg-domiciled Partners Group Global Value SICAV received redemption requests amounting to 9.8% of its net asset value for the second quarter — an extraordinarily high rate for a semi-liquid private-markets vehicle. Management promptly capped redemptions at 5% per quarter, a move it defended as a necessary protective measure for remaining investors. The announcement wiped 16.33% off Partners Group’s stock in a single session, the worst intraday collapse since its initial public offering back in 2006. A separate US-registered vehicle has since faced buyback requests of about 6% of NAV, and three other evergreen funds with combined assets of roughly $9.7 billion are expected to see second-quarter redemption rates of 3.5% to 5%. Partners Group runs more than 30 such funds across five asset classes, with total assets under management exceeding $56 billion.

Notably, the gating was imposed even though the flagship fund held cash and equivalents worth around 15% of NAV and had an unused credit line of a similar size. That has done little to calm nerves: Apollo Global Management, KKR, BlackRock and Blue Owl have all recently placed restrictions on their own semi-liquid products, underscoring the breadth of the liquidity concern in the private capital industry. The stock now trades at EUR 747 (CHF-equivalent), down almost 32% year-to-date and within touching distance of its 52-week low of EUR 733. The relative strength index stands at 24.5, deep in oversold territory, and the share price is roughly 28% below its 200-day moving average.

Should investors sell immediately? Or is it worth buying Partners Group?

Yet beneath the shellshock, Partners Group’s operational engine continues to hum. The company has launched its fifth real estate secondaries programme, targeting $1.5 billion in commitments, and secured more than $650 million in hard commitments during the first close. The vehicle will focus on providing liquidity to general and limited partners in residential, industrial and hotel properties — a niche where Partners Group has invested around $6 billion in over 120 transactions since 2008. Management also reaffirmed its full-year forecast for gross new client demand of $26 billion to $32 billion, though it warned that net asset growth could be clipped by 1 to 2 percentage points in the second half due to the evergreen redemption drag, with a similar headwind possible in 2027.

Analyst reaction has been split. Oddo BHF downgraded the stock to ‘Neutral’ from ‘Outperform’, slashing its price target to CHF 920, arguing the redemption shock has temporarily clouded the risk-reward picture. Vontobel cut its target to CHF 960 from CHF 1,200. But Julius Bär’s Roger Degen, while trimming his target to CHF 1,200 from CHF 1,400, still counts Partners Group among his top picks. ZKB’s Daniel Regli called the sell-off “exaggerated”, a view echoed by analysts at Octavian and the Helvetische Bank. Consensus forecasts point to earnings per share of CHF 46.43 for 2026, with a projected dividend of CHF 47.31 — a yield well above the stock’s historical average and a rare income anchor in a beaten-down equity.

The next major data point comes on July 15, when Partners Group releases AuM figures as of the end of June, giving investors the first concrete glimpse of the scale of net outflows. A full half-year report will follow on September 1. Meanwhile, the European Central Bank’s interest rate decision on June 12 could shift sentiment across the private-markets landscape — for better or worse. For a firm that has navigated multiple cycles since 2008, the current test is as much about restoring trust as it is about managing liquidity.

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