Baar-Zug, 13 February 2014
Partners Group closes its largest-ever dedicated private equity direct investment program at its hard cap of EUR 1.5 billion
Partners Group, the global private markets investment manager, has seen strong demand from clients for its 2012-vintage private equity direct investment program, which has closed at its hard cap of EUR 1.5 billion in commitments.
The program is the third and largest in Partners Group’s direct investments series of private equity programs. Like its predecessor programs, Partners Group Direct Investments 2012 follows a global direct investment strategy across a diversified range of sectors, but with a particular focus on the mid-market where Partners Group believes a much larger opportunity set still provides the potential to find reasonably priced assets in a competitive market. Partners Group further displays particular strength in leveraging its global platform to support companies active in local or regional markets in achieving a global presence. To find attractive opportunities in the current challenging macroeconomic environment, Partners Group believes it is crucial to have a differentiated sourcing angle and a deep network in local markets.
Partners Group Direct Investments 2012 focuses on building a globally diversified portfolio with significant potential for value creation and continued growth post-investment.
During the program’s fundraising period, Partners Group’s private equity investment professionals screened more than 1’600 companies and have invested in 10 of these. Following the implementation of successful value creation initiatives, the portfolio is demonstrating a positive performance. The industry value creation team is strongly involved in several projects with the program’s current portfolio companies including cost optimization, revenue enhancement, technological innovation, supply chain optimization and sales force build-out. The program is already a third invested upon its final closing.
Dr. Stephan Schäli, Partner and Head of Private Equity at Partners Group, comments: “Now more than ever, value creation is the key to successful private equity investing. Large-cap assets continue to trade at high EV/EBITDA multiples due to their perceived safety in the current economic environment, leaving the buyer little scope to achieve attractive returns. In contrast, the small to mid cap space globally continues to offer great potential for value creation to those firms with the right expertise to work closely with their portfolio companies. With its global platform, Partners Group is uniquely positioned to help mid-sized companies grow into global organizations by making use of its extended network to help portfolio companies expand their operations.”
Investors in Partners Group Direct Investments 2012 include a mix of new and re-upping institutional investors from public and corporate pension plans, endowment funds and foundations, insurance companies and financial institutions from around the world. Furthermore, a significant number of entrepreneurs and business leaders from among Partners Group’s network across the globe invested into the program privately. These are individuals with whom the firm actively works, drawing upon their respective sector expertise as well as their networks to enhance sourcing efforts.