Partners Group's Mid-Market Edge: Capitalizing on Energy Transition in Volatile Markets

Amid global economic uncertainty, investors are turning to resilient asset classes that offer steady returns and liquidity. Infrastructure secondaries—a niche segment where investors buy existing stakes in private equity-backed projects—have emerged as a compelling alternative. Partners Group, a leader in this space, is demonstrating how a focus on mid-market energy transition opportunities can deliver outsized returns while shielding investors from liquidity risks. With $1.5 billion in distributions to clients in the first half of 2025 and a $1.5–$2 billion investment pipeline, the firm's strategy is proving its mettle in turbulent markets.

The Mid-Market Advantage
Partners Group's success hinges on its deliberate focus on mid-market infrastructure assets—those valued between $250 million and $2 billion. This segment, often overlooked by larger competitors, offers unique benefits:
- Operational Control: Mid-market deals allow Partners Group to exert meaningful influence over asset management, driving value through operational improvements.
- Proprietary Deals: The firm's relationships with LPs (limited partners) and GPs (general partners) provide access to off-market opportunities, avoiding crowded auctions.
- Attractive Valuations: Smaller deals often command lower premiums, enabling higher returns on investment.

This strategy is particularly potent in the energy transition space. As the world shifts to renewables, mid-market assets like grid infrastructure, battery storage, and repurposed thermal plants are critical to bridging the gap between outdated systems and modern energy needs.

The Energy Transition Playbook
Partners Group's recent investments in US power generation and grid integration projects exemplify how thematic focus drives returns. In Q2 2025, the firm announced a $450 million commitment to PowerTransitions, a developer repurposing legacy thermal plants into hybrid solar-battery storage facilities. The deal's 226MW seed portfolio and 3GW pipeline align with the firm's strategy of transforming underutilized assets into sustainable infrastructure.

Equally notable are exits tied to LS Power, a developer of critical grid infrastructure. Full exits from four US power projects—projected to yield 20% net internal rate of return (nIRR) and 2.4x net total value to paid-in (nTVPI)—highlight the firm's ability to time exits strategically. These returns, generated within an average holding period of under five years, underscore the liquidity efficiency of Partners Group's model.

Shielding Against Volatility
In volatile markets, liquidity is king. Partners Group's track record of returning initial capital to investors within five years offers a stark contrast to the prolonged lockups often seen in primary infrastructure funds. This speed stems from its non-competitive transaction approach: by avoiding high-bid auctions and focusing on complex seller situations (e.g., LP-led secondaries), the firm secures assets at advantageous prices while minimizing execution risks.

The firm's H1 distributions—$1.5 billion in total—reflect this discipline. These proceeds stemmed from both full and partial exits across US and European assets, with energy transition projects accounting for the bulk. Meanwhile, its 2025 investment pipeline targets “deep-value” opportunities, ensuring capital remains actively deployed during market dips.

Navigating Risks
No strategy is risk-free. Partners Group acknowledges headwinds like policy uncertainty (e.g., US-China trade tensions) and supply chain bottlenecks in battery storage. However, its focus on domestic US projects and partnerships with firms like LS Power—experienced in navigating regulatory landscapes—mitigates these risks.

The Investment Case for 2025 and Beyond
With central banks tightening and geopolitical risks lingering, investors should prioritize assets with stable cash flows and short-term liquidity. Infrastructure secondaries, particularly those focused on energy transition, fit this profile. Partners Group's mid-market edge—combining proprietary access, thematic focus, and rapid capital recycling—positions it to outperform in volatile environments.

For allocators, the $1.5–$2 billion investment pipeline offers a direct entry point into this strategy. The firm's 20% nIRR on US power projects and five-year capital return track record provide empirical evidence of its efficacy. As energy transition spending is projected to hit $1.4 trillion annually by 2030 (IEA estimates), the runway for such investments remains long.

Final Take
Partners Group's mid-market energy transition strategy isn't just about riding a thematic wave—it's about mastering the nuances of private markets to extract value others miss. In a world of market volatility, this approach offers a rare blend of resilience and return. For investors seeking capital preservation with upside, allocating to infrastructure secondaries—and specifically to firms like Partners Group—should rank high on the priority list.

In sum, the firm's ability to turn legacy energy assets into modern infrastructure—and do so profitably amid uncertainty—proves that in infrastructure investing, size isn't everything. Sometimes, the middle holds the most promise.