Success comes as buyout funds prove better at returning capital than other strategies

June 12, 2024 (Preqin News) – Global private markets firm Partners Group has closed its fifth direct private equity program above its $15bn target, with the contributions evenly divided between a fund, Partners Group Direct Equity V, bespoke client solutions, and open-ended funds.

The program is the same size as its predecessor, which amassed $15bn at its September 2021 close, including $6bn for the fourth fund.

The Swiss-headquartered asset manager has $147bn of AUM, including $76bn in private equity, and more than 800 institutional clients. Investors in the fund comprise public and private pension plans, sovereign wealth funds, insurance companies, endowment funds, foundations, and individual investors.

The program will invest globally across its four verticals: technology, health & life, goods & products, and services, and has already made commitments to Swiss watchmaker Breitling, Canada-based safety gear supplier SureWerx, and Swiss energy inspector ROSEN Group. Partners bought a 25.0% stake in Brietling from CVC Capital Partners in October 2021 and increased it to 50.3% in December 2022.

Private equity fundraising has been relatively buoyant so far this year, despite constraints faced by investors because of a slowdown in the pace at which capital is being recycled. Across private capital, a total of $1.6tn more has been called than distributed since 2018, a reversal of the trend of the preceding five years (2013–2017), when $1tn more was distributed than called, according to Preqin data.

However, the buyout strategy has been more balanced, with capital called exceeding distributions by just $3.3bn over the period from 2018 to September 2023 and a net positive flow of $633.6bn over the prior five years.

So far this year, Preqin has recorded 145 buyout fund closes with aggregate capital raised of $216.2bn. The largest buyout fund closes this year are EQT X ($23.8bn), Silver Lake Partners VII ($20.5bn), Vista Equity Partners Fund VIII ($20bn), Cinven VIII ($14.5bn), BDT Capital Partners Fund IV ($14.0bn), and Apax Partners XI ($12.0bn).

A total of $128.9bn was raised by funds that held final closes in the first quarter, significantly higher than the $104.3bn in Q1 2023, indicating a likely increase in buyout fundraising this year. Preqin is tracking 1,223 buyout funds in market, with a combined target of $486.6bn.

The opinions and facts included within the above do not constitute investment advice. Professional advice should be sought before making any investment or other decisions. Preqin providing the information in this content accepts no liability for any decisions taken in relation to the above.