Partners Group secures €6bn for direct investment

The global investment firm’s haul includes €3bn for its flagship fund as well as separately managed accounts.

Partners Group has secured more than €6 billion of commitments for direct private equity investment.

The global investment firm held a final close on a €3 billion cap for its flagship Partners Group Direct Equity 2016 fund, which features commitments from Clwyd Pension Fund and Australian superannuation fund CARE Super, according to a statement and PEI data.

Partners Group founders, partners and employees committed more than 5 percent of the fund, together with affiliates of the firm, the statement said.

This was accompanied by an additional €3 billion raised through client mandates and several integrated investment programmes, which will be put to work, in part, alongside the flagship, a spokeswoman told PEI.

“In a sluggish macroeconomic environment, we are concentrating our efforts on specific market niches that are experiencing above-average growth,” David Layton, partner and head of private equity at Partners Group, said. “Within these pockets of growth, we look for companies with recurring revenue streams and highly visible cashflows, which are not only well-positioned to perform during a variety of economic scenarios but show significant upside potential and a clear path to value creation.”

The fund, which held a first close on €1.5 billion in February, succeeds Partners Group Direct Investments 2012, which closed in early 2014 on €1.5 billion, according to PEI data. It has a net internal rate of return of 23.9 percent, according to the statement. The firm will continue to invest in global mid-market and select large-cap targets across a range of sectors, including healthcare, education and industrials.

Partners Group Direct Equity 2016 has already committed to several investments, including US-based IT firm Curvature, global laboratory operator Cerba HealthCare and Indian property finance company Aavas Financiers.

Partners Group’s direct investment portfolio has recorded compound annual growth rates of 15 percent in terms of revenue and 19 percent in terms of EBITDA since 2014, according to the statement.