Partners Group Holding AG reported an increase in assets under management in the first half of the year, even in a tough environment.
According to a Wednesday statement, the firm, based near Zug, Switzerland, obtained $16 billion in fresh client commitments during the six months ending in June.
The firm also disclosed in its statement that "full-year estimates for tail-down effects from more mature closed-ended investment programs" are in the range of negative $10 billion to $13 billion.
"We are pleased to report record client demand," CEO David Layton stated in the announcement. "However, the investment environment remains complex. We continue to be highly selective as new investments are often demanding high valuations, particularly in private equity."
The challenging environment reflects a broader slowdown in private equity exits, as high interest rates and valuation uncertainty have kept many portfolio companies from going public or being sold. This has limited cash distributions back to investors, making it harder for firms like Partners Group to raise new funds even as client demand remains strong.
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Partners Group, one of Europe's largest publicly traded alternative asset managers, has historically relied on its evergreen fund platform to attract wealthy individual investors. These funds, which have no fixed end date, have been a significant growth engine but are now experiencing redemption pressures as the exit environment remains difficult. Founded in 1996, the firm has expanded into a global alternative asset manager with a diversified portfolio spanning private equity, private credit, real estate, and infrastructure.
Last month, the firm limited redemptions from a perpetual private equity vehicle it manages.
Read more: Partners Group May Reduce Evergreen Fund Sizes, Chair Indicates
The private-equity-focused firm is weighing a reduction in the size of its evergreen funds for wealthy investors, while essentially maintaining its investment strategy, according to Chairman Steffen Meister.
Across the industry, private-equity funds have occasionally found it difficult to attract new capital from limited partners. One reason is that a shortage of exits has curtailed distributions to investors.
Partners Group reiterated Wednesday that the evergreen platform could slow asset-under-management growth by 1% to 2% in 2026 and 2027.
It also predicted that "performance income to be around the lower end of the mid-term range of 25-40% of total revenues for full-year 2026."
Other firms' private credit funds have faced elevated withdrawal requests amid concerns about asset quality and exposure to industries that could be disrupted by artificial intelligence.
Short seller Grizzly Research has accused the firm of broadly overvaluing its funds. Partners Group has rejected the allegations.
Partners Group's long-term strategy continues to focus on direct investing and building a resilient portfolio across private equity, private credit, real estate, and infrastructure. The firm's platform, which serves both institutional and individual investors, has allowed it to weather market cycles, though the current environment of high interest rates and slow exits presents unusual headwinds. Management has emphasized selectivity in new investments and remains cautious about valuation levels, particularly in private equity.
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