Swiss private equity firm Partners Group Holding AG is blocking hedge funds from investing in the debt of three troubled portfolio companies—Emeria SASU, Ammega Group BV, and Breitling AG—to prevent disruption of its €6 billion ($6.7 billion) debt refinancing efforts. The Zug-based firm is using approved lender lists, or 'white lists,' in loan documentation to restrict opportunistic funds from buying distressed debt, even as loan prices fall and the pool of potential buyers shrinks. Hedge funds typically seek to gain influence by purchasing debt cheaply and leading restructuring talks, but Partners Group is refusing requests to add them to approved lender lists for Emeria, Ammega, and Breitling.
While hedge funds could still participate through bonds not covered by the lists, the restrictions are among the market’s most stringent. Emeria, formerly Foncia, is negotiating to rework its €3.6 billion debt and may require a cash injection from Partners Group. Ammega’s and Breitling’s loans are priced at 79 and 82 cents on the euro, respectively, while Emeria’s trades at 70 cents.
Partners Group has refinanced, raised, or repriced over $49 billion across its portfolio since 2024 and has cut dozens of private equity roles to improve performance. The firm cites shielding existing creditors from tactics like uptiering as a rationale, though critics warn such lists can worsen liquidity crunches, as seen in KKR-owned Genesis Care.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing