Partners Group Shares Fall, Dragging Sector as Private Credit Worries Resurface

By Joe Stonor

Partners Group stock fell to a six-year low after the Swiss asset manager capped withdrawals from one of its funds.

Shares tumbled close to 18% to 673.6 Swiss francs in late morning European trade, the lowest price since May 2020.

The selloff extended to other European and U.S. private investment groups as concerns around the quality of private credit that plagued the sector earlier this year resurfaced.

In Europe, EQT and CVC Capital shares fell 6.6% and 6.1%, respectively, while in the U.S. KKR slid 4.%, while Apollo Global Management fell 1.8% premarket. Investment group Blue Owl Capital, which saw its share price slide after limiting withdrawals from two of its private credit funds in April, fell 2% premarket.

Partners Group said it is limiting the amount that investors can withdraw from its Global Value SICAV fund because of a jump in investors looking to exit the fund, Bloomberg reported.

The $8.6 billion fund limited quarterly redemptions to 5% of the fund's net asset value after withdrawal requests jumped to an estimated 9.8% in the second quarter, Bloomberg reported, citing a letter to investors.

Partners Group confirmed the accuracy of the Bloomberg report, but didn't provide further comment on the redemption cap.

The Swiss group's redemption cap added to other signs of distress in private credit markets. On Tuesday, California-based Cliffwater said it was limiting withdrawals from its flagship private credit fund after it saw its own surge in redemption requests, according to a letter to shareholders viewed by The Wall Street Journal.

Private credit funds typically limit how much money investors can pull each quarter to prevent sudden runs on the funds.

The sudden slide in alternative asset managers' stocks echoes falls earlier this year, when fears over the quality of private credit saw the sector tumble in the U.S and Europe. Investors looked to pull money from funds over concerns around the extension of private credit to software companies, as well as high-profile defaults on private loans like the collapse of U.K. lender MFS.

Partners Group shares are down over 30% so far this year, while EQT has lost over 18% of its value.

Write to Joe Stonor at [e-mail]

(END) Dow Jones Newswires

06-03-26 0609ET