Partners Group Considers €800 Million Continuation Fund for Private Credit Assets

Partners Group AG is exploring a transaction to shift a portfolio of private credit loans valued at approximately €800 million ($917 million) into a new continuation fund, according to a report from Bloomberg citing people familiar with the matter.

Details of the Proposed Transaction

The proposed continuation vehicle would acquire the loan assets from several of Partners Group's existing funds, allowing the firm to manage them for an extended period. This structure provides a liquidity solution for investors in the original funds, who can either cash out their positions or roll their interests into the new vehicle.

The assets are expected to be sourced from a range of the firm's credit strategies, including:

• 2018 and 2020 Private Markets Credit Strategies funds
• The fifth, sixth, and seventh funds in its Multi-Asset Credit strategy

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Market Context and Rationale

This move reflects a broader trend in private markets where asset managers are increasingly using GP-led secondaries, such as continuation funds, to generate liquidity. Private equity portfolio companies have faced a slower exit environment in recent years, which has extended the timeline for repaying lenders like private credit funds.

This dynamic has, in turn, delayed the return of capital to investors in those credit funds. By creating a continuation vehicle, managers like Partners Group can offer their limited partners an option for an earlier exit while retaining control over performing assets they believe have further upside.