Assessing Partners Group's Resilience in a Turbulent Q2 2025 Market

In Q2 2025, global markets grappled with a perfect storm of geopolitical tensions, trade disruptions, and macroeconomic volatility. From escalating tariff wars to inflationary pressures, these tail risks created a challenging environment for private equity firms. Yet, Partners Group emerged as a standout performer, leveraging strategic adaptability and a diversified asset base to navigate the turbulence. This article examines how the firm’s innovative approaches to liquidity, fee structures, and exit strategies have fortified its resilience amid uncertainty.

Strategic Adaptations: Fee Structures and Liquidity Solutions
Partners Group’s ability to thrive in Q2 2025 stems from its proactive recalibration of fee models and liquidity frameworks. The firm transitioned to net asset value (NAV)-based management fees and raised performance fee thresholds to €15.03, aligning investor incentives with long-term value creation while mitigating short-term volatility [1]. This shift is projected to elevate performance fees’ contribution to total revenue to 20–30% in 2025, with further growth anticipated in 2026 [1].

To address liquidity demands, Partners Group embraced continuation vehicles and evergreen funds, which accounted for 20% of private equity exits in H1 2025 [2]. These tools enabled the firm to monetize long-held assets without relying solely on traditional exits, a critical advantage in a market where 40% of general partners (GPs) were willing to accept a 5–10% discount for immediate liquidity [3].

Financial Performance and Exit Pipeline
Despite the volatile backdrop, Partners Group’s assets under management (AuM) surged to $174 billion by June 2025, reflecting a 17% annual increase [2]. This growth was driven by strategic exits, such as the sale of PCI Pharma Services and Greenlink, which underscored the firm’s ability to capitalize on its long-term holdings [2].

The first half of 2025 saw a record 215 significant private equity exits, totaling $308 billion—the highest level since H1 2022 [3]. Partners Group’s robust exit pipeline, extending into 2025–2027, suggests a path to fee recovery despite Q2’s challenges. CEO David Layton noted that while tariff-related volatility slowed divestitures in the quarter, the firm’s diversified portfolio and strategic focus on high-quality assets position it for sustained performance [1].

Navigating Macroeconomic Tail Risks
The firm’s resilience is further bolstered by its ability to weather macroeconomic headwinds. Tariff uncertainties in early 2025 initially triggered a bear market in U.S. equities, though a strong rebound in May 2025 provided some relief [3]. Meanwhile, global inflation and potential central bank rate cuts added complexity to asset valuation and liquidity management.

Studies on tail risks in private equity highlight the sector’s vulnerability to illiquidity and opacity during crises [4]. Partners Group’s adoption of continuation vehicles and its emphasis on diversified AuM growth align with best practices for mitigating these risks [1]. By prioritizing liquidity solutions and maintaining a disciplined approach to valuations, the firm has positioned itself to outperform peers in a fragmented market.

Conclusion
Partners Group’s Q2 2025 performance exemplifies how strategic foresight and operational agility can counterbalance macroeconomic and geopolitical risks. By reimagining fee structures, leveraging innovative liquidity tools, and maintaining a robust exit pipeline, the firm has not only preserved its value but also capitalized on market dislocations. As global uncertainties persist, Partners Group’s approach offers a blueprint for resilience in private equity—a sector increasingly defined by its ability to adapt to turbulence.

Source:
[1] Partners Group's Resilience in Private Markets: A Case for ..., [https://www.ainvest.com/news/partners-group-resilience-private-markets-case-positioning-maturing-investment-cycle-2509/]
[2] Partners Group: A Beacon of Resilience in Private Markets, [https://www.ainvest.com/news/partners-group-beacon-resilience-private-markets-2507/]
[3] Private Equity Pulse: key takeaways from Q2 2025, [https://www.ey.com/en_us/insights/private-equity/pulse]
[4] Tail risks and private equity performance, [https://www.sciencedirect.com/science/article/pii/S092753982300124X]