Private debt leads Partners asset growth

The firm received €2bn in fresh commitments to the asset class during the first six months of 2017.

Partners Group saw its private debt assets grow at a faster rate relative to other asset classes managed by the firm during the first half of this year.

The firm took in €2 billion in commitments to private debt during the opening six months of 2017. Across all asset classes, the firm received new commitments of €6.9 billion.

That figure accounts for 30 percent of the Swiss-based firm’s overall commitments during that period. In all, the asset class has grown by 38 percent during the first half of 2017, compared to overall asset growth of 14 percent. The firm received €6.9 billion in new commitments during the period, across private equity, private credit, infrastructure and real estate strategies.

“Private debt was the fastest growing of our asset classes,” Christopher Bone, managing director, told PDI. He added in the last 12 months the firm has seen its commitments to private debt strategies grow by €3.8 billion.

The popularity of the asset class can be attributed to investors hunting yield, Bone said. “It is just difficult to find good yield in the market,” he noted.

Also helping bolster the popularity of Partners Group’s strategies is a focus on floating-rate investments. “I think there are signs of interest-rate rises in the future,” Bone said.

Private debt also accounted for a substantial amount of the investments made by Partners Group during the first half of the year. The firm made $2.3 billion of private debt investments during the period. Overall, across all asset classes, the firm made $5.6 billion in investments.