Zurich - What began as a rapid ascent by a small team of former Goldman Sachs bankers has abruptly run into investor resistance. Partners Group, the private markets manager headquartered in Zug, suffered its heaviest trading-day loss after moves to halt withdrawals on a large fund coincided with a spike in client redemptions and allegations about the valuation of some holdings.
The firm suspended redemptions on an $8.6 billion private equity fund after clients increasingly sought to redeem their capital, citing concerns about the underlying investments. On Thursday, sources said the company would also gate a still-larger U.S. fund that has experienced an uptick in withdrawal requests, driven in part by market worries that some assets could be overvalued.
Market reaction was swift. Shares in the Zug-based manager tumbled, at one point sliding as much as 18% on Wednesday, a sell-off described by observers as the company’s worst on record. "The market has concluded that Partners Group’s long-term growth potential has been damaged," said Andreas Venditti, an analyst at Vontobel. "Sentiment has been shaken."
From boutique to global private-markets player
Founded in 1996 by Marcel Erni, Alfred Gantner and Urs Wietlisbach - all ex-Goldman Sachs bankers - Partners Group launched its first private equity fund in Luxembourg a year later. Over time it broadened beyond private equity into other corners of private markets, including real estate and infrastructure, and today reports managing roughly $185 billion.
The firm’s evolution from a scrappy startup into a major institutional manager made its founders among Switzerland’s wealthiest individuals. Their financial and political influence stretches beyond the firm: they have backed campaigns to limit Switzerland’s integration with the European Union, and Gantner featured prominently in a Swiss business delegation to the White House that helped press the U.S. administration to ease tariffs it had imposed on Switzerland.
Partners Group’s rise coincided with years of share-price appreciation following its public listing in 2006, but that momentum has faltered amid a series of macro shocks including post-pandemic inflation, Russia’s invasion of Ukraine, rising interest rates and tariffs affecting trade.
Mounting concerns over evergreen funds and valuation
Investor unease had been building for months, particularly around the firm’s evergreen funds - a structure intended to give investors easier liquidity access than conventional closed-end private funds. Withdrawals from these funds grew steadily through the year, and the situation was exacerbated at the end of April when short seller Grizzly Research published a report alleging that Partners Group had overstated the value of certain assets that had delivered only modest performance.
Partners Group strongly rejected Grizzly’s allegations and said it would pursue legal action. Still, senior executives including CEO David Layton acknowledged that the report had inflicted reputational damage and affected sentiment.
The episode marks a notable case of private equity being swept into a broader context of investor withdrawals across alternative asset classes. Initially, open-ended property funds were destabilised as rising interest rates pressured real estate valuations and liquidity. Attention then shifted to private credit vehicles, where unregulated lenders provide capital to corporates. Some privately managed funds respond to spikes in redemptions by imposing gates or caps on withdrawals, a tactic that can slow outflows but also erode investor confidence.
Political and institutional ties under the spotlight
Partners Group’s influence reaches into Switzerland’s financial and political infrastructure. It is a close partner of UBS, which took the unusual step of issuing a public statement of support this week. The Swiss bank said: "We continue to view them as a valued partner."
As the firm faces intensified scrutiny, those alliances and reputational reserves may be tested. On Thursday the company warned that growth in assets under management could slow through this year and the next, a prospect that will be closely watched by clients and counterparties.
What lies ahead
For an organisation that helped channel private savings and pension capital into companies worldwide, the immediate task is restoring investor trust while managing redemption requests without unduly disrupting portfolio companies. The legal dispute with the short seller and the gating decisions will likely shape perceptions of the firm’s transparency and resilience as market volatility continues.
Partners Group’s situation underscores how private-market structures, liquidity provisions and valuation practices can become focal points in periods of market stress. The coming months will show whether the firm can stabilise its client base and asset flows, and how its partnerships and political capital hold up under pressure.