Partners Group's $5.5B infra secondaries close leans on value creation, not discount

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Partners Group has closed its infrastructure secondaries programme astatine much than $5.5 billion—on the stake that worth creation, not entry-price discounts, volition thrust returns.

LPs progressively crook to secondaries arsenic a liquidity merchandise valve for a marketplace with a structural mismatch: infrastructure assets routinely outlive the closed-end funds built to clasp them.

As much superior chases that gap, contention for the best-positioned deals is pushing firms to vie connected underwriting extent alternatively than connected however steep a discount they tin extract from a seller.

The programme comprises a $1.7 cardinal closed-end money alongside bespoke mandates and different vehicles that put successful parallel, with caller clients accounting for much than 70% of committed capital.

The superior pool, which comprises GP-led transactions and LP-led portfolios, is already implicit 25% committed crossed 20 effect investments. It besides includes a pb concern successful a continuation conveyance for a planetary commercialized aviation leasing portfolio comprising 69 assets crossed a diversified lawsuit base.

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Partners Group has closed much than 70 investments globally since 2006, delivering afloat realized returns of 18% nett IRR implicit the period.

Dr. Dmitriy Antropov, caput of backstage infrastructure concern investments, told PitchBook that Partners Group's direct-style underwriting has delivered charismatic returns crossed cycles.

"The discount is simply a comparatively tiny portion of the wide worth instauration successful infrastructure; what is much important is the near-term worth creation, which we place successful our owed diligence. As a result, our emblematic secondary is marked astatine astir 1.3x outgo 12 months aft closing, which we spot arsenic sustainable worth creation," helium said.

Infrastructure secondaries fundraising has seen accrued capitalist involvement since 2024 and acceptable caller records past year, arsenic investors physique a marketplace astir a long-standing mismatch betwixt backstage marketplace money cycles and plus lifespans.

Partners Group's infrastructure secondaries strategy has invested $2 cardinal globally successful the past year.

It closed its 4th nonstop infrastructure programme astatine much than $15 cardinal conscionable 3 days ago, 50% larger than its predecessor.

According to the firm, its nonstop infrastructure strategy delivered returns of 2.2x nett full worth to paid-in and 20.8% nett IRR crossed 21 exits since inception.

This nonfiction primitively appeared connected PitchBook News