The Resilience and Growth Potential of Partners Group in a Shifting Private Markets Landscape

The private markets landscape in 2025 is defined by two competing forces: the maturation of long-dormant portfolios and the lingering shadows of macroeconomic uncertainty. Amid this duality, Partners Group has emerged as a model of adaptability, recalibrating its fee structure, liquidity solutions, and geographic reach to align with investor priorities and market realities. By leveraging operational agility and forward-looking strategies, the firm is not only weathering the storm but positioning itself to capitalize on the performance fee upside that lies ahead.

Strategic Positioning: Fee Innovation and Liquidity Solutions

Partners Group’s recalibration of its fee structure reflects a deep understanding of investor pain points in a maturing private market. By shifting management fees to a net asset value (NAV)-based model, the firm reduces costs during periods of asset depreciation, a critical advantage in volatile environments [1]. Complementing this is the raised performance fee watermark of €15.03, ensuring that performance-based compensation is only triggered when NAV surpasses this threshold—a move that aligns incentives with long-term value creation [2]. These adjustments are part of a broader strategy to enhance competitiveness, particularly as liquidity solutions become paramount for managing maturing assets.

Continuation vehicles (CVs) and evergreen funds now form the backbone of Partners Group’s liquidity strategy. CVs accounted for 20% of private equity exits in H1 2025, while evergreen programs represent 35% of new client commitments, offering systematic access to high-conviction opportunities while mitigating liquidity constraints [3]. These tools not only address the immediate need for cash flow but also provide investors with greater flexibility to navigate macroeconomic shifts, such as trade policy disruptions and inflationary pressures [4].

Performance Fee Upside: A Tailwind in a Resilient Market

The firm’s performance fee upside is gaining momentum. In H1 2025, performance fees surged 94% year-on-year to CHF 314 million, driven by robust exits in private equity and real estate [1]. Partners Group now projects that performance fees will constitute 25–40% of total revenue in 2025, up from 20–30% in 2024 [2]. This growth is underpinned by a strategic focus on timing capital realizations to optimize fee generation, a capability that becomes increasingly valuable as private markets mature.

The firm’s evergreen funds, which now represent 30% of AUM, further amplify this trend. Performance fees from these structures rose 38% in 2024, reflecting their appeal in an environment where predictability and resilience are prized [3]. As macroeconomic clarity emerges—particularly in trade policy—transaction activity is expected to accelerate, unlocking additional fee potential [5].

Navigating Macroeconomic Clarity and Geopolitical Uncertainty

While 2025 has been marked by persistent uncertainty, Partners Group’s strategic foresight has allowed it to thrive. The firm’s expansion into the Middle East, including a regional headquarters in Abu Dhabi, taps into a market projected to grow at 12% annually through 2030 [2]. This move not only diversifies its geographic exposure but also aligns with global capital flows seeking high-growth infrastructure and technology opportunities.

Simultaneously, the firm has capitalized on market dislocation by investing $3.2 billion in private equity secondaries, leveraging these transactions to enhance liquidity for clients while acquiring undervalued LP stakes [4]. This dual focus on liquidity and capital efficiency is critical in a world where 36% of executives cite trade policy changes as a top risk to performance [5].

Conclusion: A Blueprint for Future-Proofing Private Markets

Partners Group’s success in 2025 underscores a broader truth: resilience in private markets is not about avoiding risk but about redefining it. By innovating fee structures, embracing liquidity solutions, and expanding into high-growth regions, the firm has created a blueprint for navigating macroeconomic uncertainty while capturing performance fee upside. As trade policy clarity emerges and private markets continue to mature, Partners Group’s strategic positioning ensures it is not merely reacting to change but actively shaping the future of institutional investing.

Source:
[1] Partners Group reports H1 results: management fees in line with AUM growth and increased performance fee guidance for full year [https://markets.ft.com/data/announce/detail?dockey=600-202509020100DGAP_ADHOC_adhoc_2191678_en-1]
[2] Partners Group's Shares Jump After Strong Results, Pulled [https://www.marketscreener.com/news/partners-group-s-shares-jump-after-strong-results-pulled-forward-guidance-ce7c50d3da80fe22]
[3] McKinsey & Company, Global Private Markets Report 2025 [https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report]
[4] Partners Group invests $3.2bn in private equity secondaries amid market dislocation [https://pe-insights.com/partners-group-invests-3-2bn-in-private-equity-secondaries-amid-market-dislocation/]
[5] Economic conditions outlook, June 2025 [https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/economic-conditions-outlook]