Partners Group is restricting hedge funds and distressed-debt investors from buying loans issued by three struggling portfolio companies as the Swiss private equity firm negotiates the refinancing of around €6bn in debt due in 2028, according to a report by Bloomberg.
The Zug-based manager is using approved lender lists to limit access to debt issued by French property services group Emeria, Dutch conveyor belt manufacturer Ammega and Swiss watchmaker Breitling. The restrictions are designed to prevent opportunistic investors from building positions that could give them greater influence over restructuring negotiations.
Such provisions, commonly known as white lists, allow private equity sponsors to control which investors can hold a company’s loans. They are increasingly being used to prevent distressed-debt hedge funds from acquiring discounted debt and potentially pushing for creditor-friendly restructurings or control of the business.
Emeria is negotiating with creditors over its €3.6bn debt burden, with Partners Group potentially required to inject additional capital to secure a refinancing. Ammega’s debt investors have also faced restrictions on accessing financial information and purchasing loans.
The measures could complicate exits for existing lenders as loan prices fall. Emeria’s March 2028 term loan was quoted at around 70 cents on the euro, compared with 79 cents for Ammega’s December 2028 loan and 82 cents for Breitling’s October 2028 debt.
While the restrictions can protect creditors from aggressive restructuring tactics, including transactions that improve some lenders’ priority over others, they also reduce the pool of potential buyers and may limit liquidity.
Hedge funds can sometimes gain economic exposure through loan sub-participations arranged by banks, although Partners Group’s loan documentation reportedly includes provisions that can restrict or cancel transactions where the ultimate investor is identified.
