Swiss alternative asset manager Partners Group this week flagged increased withdrawal requests from its funds, following similar action by global giant Blackstone. This underscores widening stresses within private funding markets. Partners Group is expected to cap a second major investment pool. The firm reported repurchase requests at a $16 billion Delaware-based fund reached 6% of assets, exceeding its quarterly 5% limit, prompting withdrawal caps.
Partners Group is a middle-market alternative asset manager that oversees approximately $185 billion across strategies. The company is navigating industry-wide volatility impacting open-ended evergreen funds, with pressures beginning in private credit and extending into private equity. Investors are increasingly scrutinising loans issued by private credit funds, examining valuations and lending standards. Blackstone, the world’s largest alternative asset manager, also capped withdrawals from its flagship private credit fund after redemption requests surged in the second quarter.
The recent actions highlight growing challenges for evergreen funds, which offer investors specific windows to withdraw capital. For example, redemption requests for the $79 billion Blackstone Private Credit Fund (BCRED) reached 10% in the second-quarter tender offer, leading the fund to limit withdrawals to its customary 5%. Earlier, Partners Group also limited redemptions from its $8.6 billion private equity fund after requests hit 9.8% of assets held.
Following the initial news, Partners Group shares experienced a significant dip, falling 16% to a six-year low on Wednesday, impacting peer asset managers. However, the company’s shares recovered somewhat on Thursday, aided by its expectation of gross new client demand between $26 billion and $32 billion for 2026, supported by a robust pipeline of fundraising opportunities. Blackstone also saw its shares rise by 7% on Thursday, indicating some market stabilisation.
