Partners Group plans to split its €6.6bn Global Value SICAV private equity evergreen fund into two separate portfolios, four months after redemption requests forced the strategy to limit withdrawals. The compounding fund will target long-term value accretion, while the distributing fund will give investors the option to harvest returns through portfolio realisations. Each will be formed from a different pool of investment vintages and managed by the same team.
Existing investors will be able to keep their current exposure, convert shares from the distributing fund into the compounding fund, or redeem from one or both. Conversions will be processed as a redemption from the distributing fund followed by a subscription to the compounding fund, subject to each fund’s liquidity terms. New money, meanwhile, will only be accepted into the compounding fund. Partners Group expects to make an additional material commitment to the compounding fund from its balance sheet.
The restructuring follows a difficult few months for the fund. In early June, net redemption requests for the second quarter exceeded the fund’s limit of 5% of NAV per quarter, triggering its built-in redemption restrictions. Investors in its Australian feeder fund were expected to receive only around 62% of their requests for the 30 March cut-off. The firm attributed the pressure to industry-wide volatility in evergreen fund flows.
Over its 19-year life, Global Value SICAV has returned 4.5x net invested capital. Its Class I USD shares have delivered 9.8% net a year since launching in November 2009, at annualised volatility of 5.6%.
Source: PE Insights · Summarized by HeadlinesBriefing