Partners Grp Company Research (PEYS)

Partners Group Private Equity Ltd’s (PEY’s) NAV total return (TR) improved after a weaker period to 11.4% in FY24 in euro terms. It was bolstered by the successful exit of SRS Distribution (sold to Home Depot), three IPOs and solid business traction of holdings such as International Schools Partnerships (ISP) and DiversiTech. PEY’s NAV fell by 6.5% in the first four months of 2025, mostly due to fx and the de-rating of listed holdings (KinderCare Learning Companies in particular). PEY’s board made good progress in its agenda to enhance shareholder value. In FY24, it rolled out a well-structured capital allocation framework, which, on top of regular dividends, allows it to use part of PEY’s free cash flow for buybacks. The board also renegotiated PEY’s fee structure with a favourable change to the base for calculating its management and performance fee. New members joined the board and PEY scaled up its engagement with shareholders.