Investment level steering

Investment level steering. Investment level steering is defined as the development of an investment plan to achieve and maintain the desired private markets exposure for the client. Based on Partners Group's understanding of cash flow patterns of different private markets investments, Partners Groups commitment model makes it possible to predict capital call and distribution cash flows.

Investment level steering at Partners Group addresses the following topics:

• Enlarge returns. In order to protect the client from cash dilution, Partners Group’s quantitative cash flow models follow an individual investment level which offer the highest return expectations for clients and therefore increase returns.
• Optimal portfolio allocation. The optimal portfolio allocation should ensure that the program adheres to the predefined strategic asset allocation optimizing the risk-return characteristics of the portfolio.
• Maintain target investment level. A private markets “commitment level” varies widely from an “investment level”. Partners Group’s leading quantitative cash flow forecasting model increases visibility on cash flow patterns, thus allowing a more precise investment level steering. This enables our clients maintain their predefined investment level.
• Manage portfolio risks. Private markets portfolio risks quantify the variability of cash flows and analyze the development of the portfolio in various scenarios. Thus, it is imperative to manage the risks associated with these investments.
• Preserve value. Investment level steering during down cycles is highly important as it preserves value of existing portfolios. It quickly adapts to changes in distribution pattern and therefore reduces the potential risk of having to sell parts of the portfolio on the secondary market at depressed valuations (high discount to NAV).