Institutional Investors Scrutinize $185 Billion Private Markets as Redemptions Rattle Partners Group
Updated
Updated · Reuters · Jun 15
Institutional Investors Scrutinize $185 Billion Private Markets as Redemptions Rattle Partners Group
3 articles · Updated · Reuters · Jun 15
Summary
Institutional investors are not rushing for the exits, but Swiss pension advisers say they are becoming markedly more selective on private-market commitments after recent fund turbulence.
Partners Group capped withdrawals from a major evergreen private-equity fund this month after heavier redemptions, while a similar move by Blackstone in private credit reinforced concerns about liquidity terms.
Advisers said investors are probing valuations, lending standards and private-credit loan quality more closely, with private assets also lagging tech-led stock gains that have encouraged exits.
Retail clients have driven most outflows so far, but consultants said some pension funds could still trim exposure over time by letting existing private-market programs run off without reinvesting.
Private wealth clients make up about one-fifth of Partners Group's $185 billion in assets under management, and advisers expect widening performance gaps to expose weaker managers in coming weeks.