Swiss private markets manager Partners Group is to restructure its London-listed private equity investment trust in an effort to manage growing investor redemption pressure and narrow the persistent gap between share price and net asset value, according top a report by Reuters.
The firm confirmed that its Partners Group Private Equity (PEY.L) Limited investment trust, which oversees roughly €800m in assets, will introduce a dual share-class framework. Under the proposed structure, investors will be given the option to retain exposure to the existing evergreen strategy or to convert up to 30% of their holdings into a separate “realisation” pool, where assets will be progressively wound down and returned in cash over time.
The move is designed to provide a more flexible liquidity pathway at a time when private markets managers are facing increased withdrawal requests from wealth and retail-linked investor bases. It also comes amid continued discount pressure on listed private equity vehicles relative to underlying net asset values.
According to the board, the restructuring aims to address both investor demand for liquidity and the ongoing valuation disconnect affecting the trust. Chair Peter McKellar described the proposal as a practical solution within the board’s control to better align the structure with current market conditions.
The announcement follows heightened volatility across Partners Group’s listed equity earlier this month, after the company moved to restrict redemptions in a separate $8.6 billion evergreen fund facing significant withdrawal requests. Market concern over liquidity management in private markets also led to speculation that additional caps could be applied across larger US-domiciled vehicles, although the firm has since indicated there are no immediate plans for further restrictions across its evergreen range.
Investor appetite for private markets exposure has become increasingly sensitive to valuation uncertainty and liquidity terms, particularly among high-net-worth and retail-oriented channels. This has contributed to a broader increase in redemption activity across parts of the sector, with pressure now extending beyond private credit into private equity strategies.
More broadly, industry participants have pointed to growing risks linked to private equity and credit exposure to software businesses facing disruption from artificial intelligence adoption. Recent restructuring activity in the sector has underscored these pressures, including creditor-led takeovers of highly leveraged software firms, which in some cases have resulted in significant equity impairments for private equity sponsors and co-investors.
Shares in Partners Group were trading lower following the announcement, reflecting ongoing investor caution around liquidity conditions and valuation support in listed private markets vehicles.
