Partners Group Warns of Broader Fund Redemption Caps After Private Equity Selloff

Swiss private markets giant Partners Group signaled Thursday that it may impose withdrawal limits on more of its funds, CNBC reported, after redemption pressure that has already rattled private credit markets appeared to spill into private equity.

Withdrawal Requests Trigger Immediate Gates

Partners Group confirmed it has already halted redemptions from its Global Value SICAV, a European vehicle, after withdrawal requests reached 9.8% of net asset value. The fund manager capped outflows at a 5% threshold. A separate Delaware-domiciled U.S. private equity fund faces an estimated 6% redemption level in the second quarter, the firm added. Three additional evergreen funds, with combined assets of roughly $9.7 billion, are also expected to see second-quarter redemption requests of between 3.5% and 5%. Partners Group said it would apply the same 5% liquidity ceiling to any evergreen vehicle where withdrawals breach that level.

Why This Spooked the Broader Market

News of the initial gating sent Partners Group shares tumbling more than 16% in Zurich on Wednesday. Shares in major U.S. private markets managers, including KKR, Blackstone, and Ares, also closed lower that session. The speed of the reaction reflects raw nerves around open-ended fund structures, which promise periodic liquidity but hold assets that are inherently illiquid. Partners Group recovered somewhat, trading more than 3% higher in Thursday morning trade.

Background: Evergreen Funds Under the Microscope

Evergreen funds grew rapidly during the low-rate era as managers sought to attract private wealth capital alongside traditional institutional money. Unlike closed-end vehicles, they allow periodic redemptions, creating a structural mismatch between liquid liabilities and illiquid underlying assets. Redemption pressure had already roiled private credit funds earlier this year, and Thursday’s warning confirms that strain is now moving into private equity.

CEO Pushes Back on Quality Concerns

CEO David Layton defended the gating mechanism, telling investors that liquidity limits exist to shield long-term holders from the distortions of short-term flow dynamics, CNBC reported. He argued that the firm’s underlying portfolio companies retain significant upside, pointing out that flagship funds have delivered more than five times initial capital since inception. Partners Group manages roughly $185 billion in assets, with institutional investors accounting for about 80% of that total and private wealth clients the remaining 20%.

Read Next: What the Private Credit Liquidity Crunch Means for Markets