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Partners Group Caps Withdrawals from Evergreen Fund, Warns More Limits to Come

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Partners Group Caps Withdrawals from Evergreen Fund, Warns More Limits to Come

Partners Group (PGHN.SW) capped withdrawals from one of its evergreen funds and warned it could impose similar limits on its other funds as heightened volatility leads to a surge in redemption requests.

In a market update released Thursday, the Swiss alternative asset manager said it had capped withdrawals from its Luxembourg-domiciled Global Value Sicav fund at 5% of net asset value per quarter following elevated redemption activity in the second quarter. Redemption requests reached 9.8% of NAV during the period.

The firm attributed the increase in withdrawals to heightened volatility in open-ended evergreen fund flows, a trend that first emerged in private credit vehicles before more recently spreading to private equity. Partners noted that repurchase requests for a Delaware, US-domiciled private equity evergreen vehicle will be slightly above the company's threshold of 5% of NAV.

Partners Group shares dropped more than 16% on Wednesday, when news of the redemption cap first broke. The stock has since rebounded and was up nearly 4% early Thursday.

Amid rising redemption requests from investors, the company is also preparing to introduce withdrawal limits for its US-focused Private Equity Master Fund in the "coming weeks," London's Financial Times reported the same day, citing unnamed sources.

"Partners Group has consistently communicated to clients and market participants that its evergreen vehicles are typically equipped with liquidity limits of up to 5% of NAV per quarter, and that these limits would be enacted whenever redemption activity reached the designed threshold," the company said. "As a result, GV SICAV will operate the 5% quarterly liquidity limitation. The firm is prepared to enact the respective liquidity limitation mechanism across other funds."

The company expects net assets under management growth to be 1% to 2% slower in the second half of 2026 due to the impact of the evergreen funds, with a similar effect anticipated in full-year 2027.

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