Partners Group Unveils Dual Share-Class Plan for London Trust as Stock Plunges 36%

A devastating short-seller attack and a wave of redemption requests have sent Partners Group shares into a tailspin, wiping out more than a third of their value since the start of the year. The stock, which closed at €715.60 on a recent Friday, has since slipped further to €696.40, hovering just above a fresh 52-week low and extending the year-to-date loss to 36%.

The rout began in April when US short seller Grizzly Research published a report accusing the Swiss asset manager of massively overvaluing its evergreen funds, even drawing parallels to the Wirecard scandal. Partners Group has dismissed the allegations as defamatory and filed a lawsuit, but the damage to investor sentiment was immediate. "The criticism is demonstrably unfounded," co-founder Alfred Gantner told the media, attributing the share price collapse to a broader sector-wide reassessment.

Against that gloomy backdrop, the company's own management has been buying stock aggressively. Since February, insiders have purchased nearly 60 million Swiss francs worth of shares, including 31 million francs in June alone. Yet the market has largely ignored this vote of confidence. Co-founder Fredy Gantner, who also bought shares, acknowledged communication missteps but remains confident in the firm's strategy.

The selling pressure from retail investors, who make up about 20% of assets under management, forced Partners Group to take drastic measures. In early June, the company capped redemptions from the $8.6 billion Global Value SICAV at 5% of net asset value, after exit requests had surged to nearly 10% of the fund. Other evergreen vehicles, including a Delaware-domiciled fund that saw outflows of around 6%, are also expected to face significant redemptions in the second quarter.

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

To address the liquidity mismatch, the board of directors is pushing forward with a restructuring of the London-listed investment trust Partners Group Private Equity Limited (PGPE). Shareholders will vote at an extraordinary general meeting on a proposal to split the trust into two classes of shares: continued investment shares for long-term holders, and realization shares for those seeking an exit. The latter class will be capped at 30% of the trust's capital, limiting the potential outflow.

Chairman Steffen Meister defended the underlying strategy but acknowledged the need for smaller evergreen funds in the future to better balance size and liquidity. The company has stuck to its full-year guidance of gross new client demand between $26 billion and $32 billion, though the redemption crisis is expected to trim net growth by one to two percentage points in the second half.

Analysts have responded by slashing earnings forecasts for the next two years by 10% to 22% and citing poor visibility and lack of growth catalysts. Of the 13 analysts covering the stock, six rate it a buy and seven a hold, with an average price target of 966 Swiss francs. The shares are deeply oversold, with a relative strength index of 21.7 indicating extreme bearishness, and trade 31% below their 200-day moving average.

Partners Group at a turning point? This analysis reveals what investors need to know now.

All eyes are now on July 15, when Partners Group will release its half-year assets under management figure. If the total drops below the critical $185 billion threshold, further downside is likely. Given the current oversold conditions, a positive surprise could offer the battered stock a lifeline.

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Partners Group Stock: New Analysis - 27 June

Fresh Partners Group information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

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