We have a recognized ability to transform companies. Our transformational investing approach seeks to generate strong returns by capitalizing on thematic growth trends and transforming attractive businesses into market leaders.
Through our large local teams of private markets investment professionals, we identify the most attractive transformative trends across sectors and invest into the companies and assets with the strongest development potential
ENTREPRENEURSHIP AT SCALE
Together with our extensive network of Operating Directors and Industry Advisors, our private markets investment professionals leverage our entrepreneurial governance approach to transform portfolio companies and assets
Our transformational investing approach has delivered sustainable double-digit EBITDA growth across our portfolio and underpins our track record of investment outperformance
Thematic investing is our proprietary and systematic approach to identifying the most attractive transformational investment opportunities for our clients. Our approach begins with three overriding investment giga themes, that lead to many significant transformative trends and, ultimately, to hundreds of material sector themes that drive change at the company and asset level.
Three giga themes guide our thematic investing
Digitization & Automation
The main force driving the transformation of businesses across technology, services, and production
The reshaping of consumer preferences and habits in areas such as nutrition, healthcare, leisure, and learning
The largest ever global energy infrastructure and effectiveness program in history, touching on all economic sectors
Although three investment giga themes guide our approach, we focus on the cascade of significant transformative trends that fall under these themes. We look beyond the top layer to identify companies operating in less obvious underlying sub-sectors that are also benefiting from transformative trends. This second- and third-order thinking provides us with exposure to growth trends at a much lower risk profile.
We apply our thematic investing approach across all our industry verticals: Goods & Products, Health & Life, Services, Technology, Real Estate, and Infrastructure.
"Our thematic investing approach revolves around transformative trends triggered by changes in structural and industry dynamics, such as technological advances or business-model adaptations. We look for themes that result in sustainable, above-average secular growth over a five- to ten-year period and typically follow 40 to 60 thematic ideas at any one time."
Christina Han, Head Investment Research
Relative value approach
Changing market conditions, as well as transformative and regional trends, can significantly affect the attractiveness of different sectors and industries. We therefore look to optimize returns by dynamically responding to market dislocations.
We conduct regular analysis to identify and further define those sectors, regions, and industry strategies likely to offer higher value relative to other segments at that time. While our relative value approach offers the potential to identify the most attractive returns from a top-down perspective, it requires a comprehensive array of skills and can only be successfully implemented from the bottom-up by a large, globally integrated team with a broad industry network, strong deal flow and experience across economic cycles.
We summarize our relative value approach and current outlook for all private markets asset classes on an annual basis in our Private Markets Navigator.
Our key target is to realize the full development potential of the companies and assets in which we invest on behalf of our clients. Active value creation is a core element of this aim.
Operational value creation initiatives vary, but typically focus on achieving certain strategic objectives such as expansion through an organic or acquisition-based growth strategy, improving operational effectiveness through a number of focused operational projects, or through capital management.
All strategic initiatives are guided by our high ESG (environmental, social and governance) standards and aim to create lasting, positive impact for all of our stakeholders. You can read more about how to seek to create positive stakeholder impact in our Corporate Sustainability Report.
Our Portfolio Solutions & Risk Management teams are responsible for constructing and adjusting our diversified private markets portfolios over time so that they meet investors' portfolio requirements and deliver sustainable performance across economic cycles.
- Portfolio strategy: we build private markets portfolios tailored to the specific target returns of our clients by combining complementary private markets investment strategies.
- Portfolio implementation: we gradually ramp-up and re-invest our clients' portfolios based on a predefined implementation plan devised in accordance with their investment horizons.
- Portfolio servicing: we offer our clients a full range of market-leading portfolio services including portfolio planning, treasury management, customized reporting, regular valuation procedures, accounting that accommodates local requirements, and complete administrative services.
- Liquidity management: we have been managing liquidity in private markets portfolios across various structures (limited partnerships, separate accounts as well as semi-liquid and open-ended funds) for over two decades.
- Risk management: we apply rigorous quantitative and qualitative risk management processes, which have contributed to a strong track record and client satisfaction.
Bespoke client solutions
Partners Group is a market leader in providing bespoke private markets solutions. We provide tailored access to private markets and seek to enhance returns through our best-in-class portfolio management and structuring capabilities. This enables us to go beyond traditional LP structures and offer clients access to our transformational investments via a range of customized solutions, including many with liquidity features.
ACTIVE PORTFOLIO AND RISK MANAGEMENT
We construct and manage bespoke portfolios, matching our clients' private markets targets based on access to individual transactions independent of fundraising cycles
RELATIVE VALUE INVESTING
We optimize returns by dynamically responding to market dislocations, supported by over 50 dedicated portfolio managers and more than 500 investment professionals
DEDICATED STRUCTURES AND OERATIONAL SETUP
We provide tailored access to private markets through dedicated structures and a state-of-the-art operational set up, supported by more than 50 internal legal and tax specialists
"Through our bespoke client solutions, we seek to optimize the return potential of clients' commitments to private markets."
Roberto Cagnati, Co-Head Portfolio Management