Partners Group CEO David Layton addressed concerns regarding the capping of withdrawals from one of their evergreen private equity funds, stressing that these actions are a designed feature of such funds. He highlighted that the ability to limit redemptions is crucial for these vehicles to function effectively, particularly in helping individual investors navigate market cycles akin to institutional investors. Layton stated that these funds are performing exactly as intended by their design.
The firm’s Global Value SICAV fund, an $8.6 billion evergreen private equity fund, began limiting redemptions to 5% of its net asset value per quarter after withdrawal requests surged to an estimated 9.8% in the second quarter. This move came amid heightened redemption pressure, as investor anxiety, previously seen in private credit vehicles, started to affect other private market asset classes. Layton explained that these funds are designed with such mechanisms to manage liquidity.
Layton also mentioned that Partners Group made a deliberate decision to avoid disproportionate scale in private credit over the past few years, a choice he feels good about. The company had previously noted that its evergreen funds, which it pioneered, constitute about 30% of its total assets, managing approximately $56 billion in these funds as of year-end 2025. He indicated that the firm is working to diversify its segments, acknowledging some past concentration. Other executives, including BlackRock CEO Larry Fink, have also stated that redemption limits are clearly outlined in fund prospectuses.
