Swiss private market investment firm Partners Group said Tuesday it has received total client commitments of $15 billion for its fourth private equity buyout programme.
The programme is anchored by Partners Group’s fourth flagship direct equity fund, which raised $6 billion. It also includes $9 billion committed via other private markets programmes and bespoke client solutions that will invest alongside the fund.
David Layton, CEO and head of PE at Partners Group, said the milestone highlights investors’ faith in its investing strategy.
The closing comes after the fund has already invested in 17 companies. These include US healthcare companies Blue River Petcare and Axia Women’s Health, Portugese crop nutrition products maker Rovensa, European pharmaceutical company Pharmathen and Indian logistics company Ecom Express.
The fund will deploy the remaining amount globally in mid-market companies across four industry verticals: goods and products, health and life, services and technology.
Investors in Partners Group’s fourth buyout programme are a mix of new and existing clients, including public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds and foundations.
Existing investors anchored the new fund, accounting for commitments that exceed the total size of its predecessor fund. Partners Group’s founders, partners, employees and affiliates also committed to the fund. Cumulatively, this group has now committed more than $3 billion to the firm’s various investment vehicles.
Partners Group also said that its third buyout fund currently has a net internal rate of return (IRR) of 22%. Its recent exits include the sale of US digital engineering services company GlobalLogic to Hitachi for an enterprise value of $9.5 billion, and of PCI Pharma, a US-based company that provides outsourced pharmaceutical services.
Partners Group in India
The alternative investment firm recently agreed to acquire a controlling stake in Atria Convergence Technologies, a provider of high-speed fibre-optic broadband, from private equity firms True North and TA Associates.
Partners Group has been a joint investor in Atria since 2016 and will acquire a controlling stake in a transaction that pegs the company’s enterprise value at nearly $1.2 billion.
This would count among one of the largest secondary (PE to PE) deals in India. Indeed, Partners Group itself had sealed a $1-billion secondary transactions relate to India when it bought Vishal Mega Mart along with Kedaara Capital from TPG and Shriram Group. It also did a similar-sized transaction for GlobalLogic where it picked up the stake from Apax Partners.
Partners Group’s other investments in India include Vishal Mega Mart, franchisor of the Vishal Mega Mart brand and wholesale supplier to Vishal-branded hypermarket stores; and mortgage lender Aavas Financiers.
The group had $119 billion in assets under management as of June 30, 2021.