Partners Group is exploring a continuation vehicle of about €800m to extend the holding period for a portfolio of private credit loans, in another sign of the growing role of secondaries in providing liquidity to investors in private debt strategies, according to a report by Bloomberg.
The Swiss asset manager is considering transferring the loans from several of its existing private credit funds into a new vehicle, according to people familiar with the matter. Investors in the existing funds would have the option of rolling their interests into the continuation vehicle or taking liquidity.
The assets being considered for the transaction include loans held in Partners Group’s 2018 and 2020 Private Markets Credit Strategies funds, together with investments from the fifth, sixth and seventh funds in its Multi-Asset Credit strategy.
A continuation vehicle would allow Partners Group to retain exposure to the loans beyond the original life of the funds while giving existing investors a mechanism to realise their positions. The structure would also provide the manager with additional time to manage and ultimately exit the underlying credit investments.
The proposed transaction remains under consideration though and details of the final portfolio and structure could change before any deal is completed.
