According to its chairman of Asia, Partners Group, a Swiss investment business, has announced a new $12 billion private equity secondary strategy fund, staking its future on increasing deal flows in the secondaries market.
The market for private equity secondaries, which has grown in popularity recently, enables investors in private equity funds and private enterprises to make early exits in order to release capital.
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“We see much bigger deal flows on the secondaries side, which is why we just launched our number eight private equity secondary strategy (fund),” said Kevin Lu, partner and chairman of Asia for Partners Group during the Milken Institute’s inaugural Global Investors’ Symposium in Hong Kong. “It is going to be a $10-$12 billion strategy (fund), bigger than the last fund,” Lu added.
The Switzerland-based Partners Group raised $3.2 billion and $2.8 billion for its last two secondary funds in 2020 and 2016, respectively, according to statistics from research firm PitchBook. According to its website, Partners Group was established in 1996 and currently manages $147 billion in assets worldwide spanning private equity, real estate, infrastructure, credit, and secondaries.
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Lu claims that more limited partners in funds are turning to secondaries markets as an alternative for exits due to the slower realization in private equity and the growing cost of capital.
About Partners Group
Partners Group is a multinational private markets company that manages USD 147 billion in assets and employs over 1,900 people in 20 offices across the globe.
