Partners Group Private Equity Limited (PGPE), a London-listed investment trust managing approximately €800 million (about $917 million) in assets, announced a proposal to introduce a dual share-class structure. This move allows shareholders to elect for either a "Continuing Ordinary Shares" class, which maintains the existing investment strategy, or a "Realisation Shares" class, which will gradually sell off underlying assets and return proceeds without making new investments. This proposal, to be voted on by shareholders in Q3 2026 and, if approved, effective in Q4 2026, aims to address a chronic 28% to 36% discount of PGPE's shares to its net asset value (NAV) and investor demand for liquidity.
The cap for conversion into Realisation Shares is set at 30% of total share capital, or roughly €250 million. The board believes this controlled exit strategy will prevent fire sales and create a more aligned shareholder base. This initiative follows broader liquidity pressures faced by Partners Group, including capping redemptions at 5% of NAV per quarter in its $8.6 billion Global Value SICAV fund after exit requests hit an estimated 9.8% in Q2, and similar pressures in other evergreen funds. The strain is predominantly from private wealth clients, who constitute about 20% of assets under management.
Interim results for PGPE showed an 8.6% loss in NAV in the first half of the year, following significant losses in 2025, which the chairman, Peter McKellar, called "disappointing." Despite this, exit activity from four private holdings saw total proceeds jump to €110.6 million from €39.6 million a year prior, enabling €35.7 million in dividends and share buybacks. Sell-side analysts have reacted by cutting price targets, with Jefferies reducing its target to 760 francs from 1,130 francs, and Bank of America lowering its target to 850 francs from 1,150 francs, both maintaining a hold rating. Earnings-per-share forecasts for 2026 and 2027 have been trimmed by 10% to 22%.
