WRAPUP 1-Partners Group cap prompts share plunge as private credit fears spread

Wed, 03rd Jun 2026 15:24

* Partners Group leads slide in private equity-linked shares

* Swiss company limits withdrawals on major evergreen ⁠PE fund

* Selloff points to private credit fears spreading

* Cliffwater reports heavy second-quarter redemptions

ZURICH/LONDON, June 3 (Reuters) - Partners Group's shares sank 17% on Wednesday after it capped withdrawals from an $8.6 billion private equity fund, prompting falls in other European and U.S. fund groups and stirring broader market jitters ‌over private credit exposures.

The Swiss company, which oversees about $185 billion in assets under management, said there had been industry-wide volatility across open-ended evergreen funds since late 2025, starting in private credit and spilling into private equity.

It said ⁠total net redemption requests had exceeded 5% of the net asset value of the Partners Group Global ⁠Value SICAV fund and it was therefore capping redemptions, triggering a record fall in its already weakened share price. Investors have recently been trying to withdraw money from private credit funds, as worries rise about valuations, lending standards and how software companies that have received large amounts of funds can handle AI challenges.

"Some of this redemption pressure that started in private credit has started to make its way over into other asset classes," Partners Group CEO David Layton told Bloomberg TV.

The firm received ‌redemption requests on about 9.8% of the fund, which represents about 4.8% of its asset base, he said. A significant chunk of its investors are from Asia Pacific and Australia, and most redemptions had come from there, he added.

Some investors have expressed fears about opaque valuations and exposure to AI at private equity funds, which typically invest in shares, and Wednesday's statement by Partners Group further fuelled those concerns. Of its Global Value Fund's top 10 direct holdings, four are in technology, a March filing showed. Layton said Partners Group's total exposure to software assets was under 10%.

Shares in EQT fell more than 6%, while CVC Capital Partners and Bridgepoint Group dropped 6% and 5%, respectively.

"The share price reaction implies that the outflows from the Global Value Fund are merely ‌the beginning and will spill over to other investment vehicles," said Vontobel analyst Andreas Venditti, adding, "Given the current focus on private credit, the market is highly sensitive to negative news".

Shares in U.S. private markets groups also slid, with Blackstone down nearly 3%, KKR falling ‌4.7% and Ares Management down 4.4%.

'PRIVATE WEALTH CLIENTS ARE THE WEAK LINK'

Redemption windows at key U.S. non-traded private credit funds for the second quarter began closing last Friday. The closures will be spread across June and market participants are closely watching for subsequent updates on withdrawal requests.

Cliffwater was first to report second-quarter redemptions on Tuesday, with withdrawal requests at its flagship $31.3 billion private credit fund rising to 17% from 14% in the first quarter.

Redemption requests across U.S. non-traded private credit vehicles rose as high as 41% in the first quarter, prompting most managers to enforce the typical 5% limit on withdrawal requests, curtailing ‌liquidity for investors.

Analysts have backed the move to limit withdrawals as it would help mitigate the risk of forced asset sales.

Partners Group said the underlying fund's liquidity position remains within its target, supported by ongoing distributions from its underlying portfolio and an undrawn credit facility.

The Global Value Fund and the underlying fund continue to invest and remain open for applications, it added.

"Volatility in open-ended ⁠evergreen fund flows ⁠across the industry has been building since late 2025, beginning in private credit vehicles. These flow dynamics have recently accelerated and extended ‌to the private equity asset class, impacting the underlying fund," Partners Group told investors in a statement.

"Private wealth clients are the weak link," said Aneeka Gupta, director of research at WisdomTree, adding they are usually quicker to withdraw money than institutional investors.

"Evergreen funds were sold to retail investors as a way to get private equity liquidity, but private equity is inherently illiquid," she said. "When enough people test that promise ‌at once, the gates come down."

Wednesday's fall brings the year-to-date drop in Partners Group shares to around 30%.

Layton said 80% of the firm's investors are institutional with a long-term focus and that its funds had plenty of liquidity. Individual investors were behind most of the affected fund's redemptions, he added.