Partners Grp Company Research (PEYS)

A notable positive of Partners Group Private Equity’s (PEY’s) FY25 results was the considerable level of realisation proceeds of €227.3m (c 22% of opening NAV), supporting new investments, its attractive dividend policy and limited buybacks. However, PEY’s NAV total return (TR) performance was disappointing with an 8.7% decline in 2025, although this included a 5.7pp negative fx impact from the depreciating US dollar. Idiosyncratic headwinds at three portfolio holdings were a major negative contributor. That said, Partners Group (PG, PEY’s investment manager) has recently seen an acceleration in value accretion across its 2021–23 vintages (which was initially slow) and is optimistic about its investments made in 2024–25. We also note that PG has consistently kept PEY’s exposure to software companies below that of private equity (PE) peers, now below 10%.