Analyst downgrades soaring Partners Group

After a three month rally of around 90%, shares in the alternatives group have been downgraded by Morgan Stanley. However, the bank says Partners’ business model still makes it attractive in the long term.

Shares in listed alternatives investor Partners Group have been downgraded by investment bank Morgan Stanley.

After a run which has seen Partners’ shares put on around 90 percent since the low of March this year and outperform its sector peer group by around 70 percent, Morgan Stanley describes the shares as “due a pause”. It has been downgraded from over-weight to equal-weight.

With robust fundraising efforts – Partners Group is set to add 8 percent in net new money in 2009 – and its capabilities across a broad range of strategies – secondaries, distressed, real estate and infrastructure – the Swiss firm is still attractive in the long term, said Morgan Stanley in a research note seen by PEO. The bank also noted the group’s healthy balance sheet, “sticky assets” and stable fee income.

Partners Group has a total of around CHF25 billion (€17 billion; $23 billion) under management and it invests across a variety of alternative asset classes, including private equity, debt, infrastructure and real estate. Its private equity programme, which comprises fund of funds strategies and co-investments, accounts for CHF19.2 billion of its total assets.

Having hit a low in March of CHF54, shares today were trading at CHF99. Partners Group did not respond to a request for comment.