Partners Group and Northern Trust: A New Frontier in Private Credit Access for Institutional Investors

The partnership between Partners Group, a global private markets leader, and Northern Trust, a premier financial services firm, marks a significant milestone in the democratization of private credit investments. By selecting Northern Trust to support its first private credit-focused Long Term Asset Fund (LTAF), Partners Group has positioned itself at the forefront of a structural shift in how institutional and retail investors access illiquid assets. This collaboration, which builds on an existing relationship between the two firms, leverages Northern Trust’s operational expertise to deliver a semi-liquid vehicle compliant with the EU’s ELTIF 2.0 framework—ushering in a new era of accessibility for defined contribution (DC) pension schemes and other institutional investors.

The Strategic Rationale: Why This Partnership Matters

The LTAF’s launch in April 2025, following FCA approval in January 2025, is not merely a product offering but a strategic response to two converging trends: the demand for yield in a low-interest-rate environment and the regulatory push to open private markets to non-professional investors. Partners Group, with $150 billion in assets under management, is leveraging Northern Trust’s fund administration, depositary, and banking services to create a vehicle that balances the illiquidity of private credit with the redemption flexibility required by DC pension funds. The partnership’s success hinges on three pillars:

1. Operational Excellence: Northern Trust’s fund administration platform ensures seamless management of the LTAF’s complex operations, including fund accounting, transfer agency, and compliance with the ELTIF 2.0 regime. This framework, updated in 2022, simplifies participation for non-professional investors by requiring semi-annual redemptions and clearer fee disclosures.
2. Risk Mitigation: The depositary services provided by Northern Trust safeguard assets, ensuring adherence to the strict custody and valuation standards demanded by regulators.
3. Structural Innovation: The fund’s Luxembourg-based SICAV structure, paired with monthly redemptions, offers DC pension members access to defensive private credit assets—such as mid-growth loans and floating-rate instruments—without the liquidity constraints of traditional private equity funds.

The Market Opportunity: Private Credit’s Rise and the Role of Semi-Liquid Funds

Private credit has emerged as a critical asset class for institutional investors seeking to diversify income streams and hedge against market volatility. A reveals a sector that has expanded from $400 billion to over $1 trillion in AUM in five years, driven by demand for alternatives to fixed income. Partners Group’s LTAF targets a subset of this market—mid-growth and decumulation-phase credit opportunities—that align with the risk/return profile of DC pensions.

The ELTIF 2.0 framework, while originally European, has inspired similar structures globally. By adopting it, Partners Group avoids the complexity of multiple regulatory approvals, streamlining access for UK-based pension schemes. Olivier Noël of Northern Trust highlighted this synergy, stating the partnership reflects their “consultative and technical capability to support asset managers in this fast-evolving part of the funds industry.”

Partners Group’s Pro-Rata Allocation Policy and Investor Flexibility

A key differentiator of the LTAF is its adherence to Partners Group’s pro-rata allocation policy, which ensures investors receive proportional access to underlying assets. Markus Pimpl, Partners Group’s Managing Director, emphasized this point, noting the fund’s ability to “enable flexibility for both institutional and individual investors.” This contrasts with traditional private equity funds, where capital calls and distributions can disrupt cash flow planning.

The LTAF’s evergreen structure—supported by Northern Trust’s banking services for liquidity management—further enhances flexibility. Investors benefit from monthly redemption windows, a feature uncommon in private credit, while the fund’s defensive characteristics (e.g., floating-rate exposures) mitigate interest rate risk.

Northern Trust’s Strategic Positioning in the Fund Services Market

For Northern Trust, this partnership reinforces its role as a trusted partner for complex fund structures. A shows steady growth, reflecting institutional demand for its fund administration and custody services. The firm’s expertise in multi-asset class strategies, highlighted in the partnership, positions it to capitalize on the $2.5 trillion semi-liquid fund market expected to emerge by 2030.

Conclusion: A Model for the Future of Institutional Investing

The Partners Group-Northern Trust LTAF is more than a fund—it is a blueprint for how private markets can be made accessible to a broader investor base. With $150 billion in AUM and a regulatory framework that simplifies participation, Partners Group is well-placed to capture a growing portion of the $1 trillion private credit market. Meanwhile, Northern Trust’s operational and regulatory prowess underscores its value in an industry where compliance and liquidity management are critical.

Looking ahead, this partnership signals a trend: institutional investors will increasingly rely on semi-liquid vehicles to balance yield and liquidity. As the ELTIF 2.0 framework gains traction, similar structures are likely to proliferate, with private credit and real assets at their core. For now, the LTAF stands as a testament to the power of strategic alliances in unlocking new investment frontiers.

In an era where 60% of institutional investors cite private credit as a top allocation priority (Preqin, 2024), this partnership is not just a success story—it’s a harbinger of things to come.