Partners Group invests half of latest fund in secondaries

The €537m Partners Group Global Value 2008 took advantage of distressed sellers in the market by buying assets at a discount. An unnamed seller offloaded a portfolio to the recently closed fund, with Partners picking up the assets at a discount of 58 per cent to net asset value.

Besides buying up secondaries, the fund is seeking direct investments and has already bought Oasis Dental, a UK dental group serving both NHS and private clients, and Kaffee Partner, a German distributor of coffee and water dispensers.

Stephan Schäli, a partner at the firm, said the fund has kept a hold of enough cash to take advantage of any opportunities appearing in the coming months.

He said, “Although the secondary market remains active, the bid-ask spread has begun to narrow as the market distress has subsided and making the correct investment decisions requires an even more in-depth approach and an understanding of each individual underlying asset.

“In addition, we expect to see highly attractive investment propositions in direct investments both in distressed situations requiring significant restructuring expertise as well as in value buy-out opportunities in small and mid-cap companies with moderate leverage which offer extensive potential for streamlining operations and future growth," he added.  

As well as putting this fund to work in the secondary market, Partners Group closed a dedicated vehicle, Partners Group Secondary 2008, last December. Investors put up €2.5bn, the fund’s hard cap, signaling buyers’ appetite for secondhand private equity last year.    

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