Partners Group adds private markets royalties to its investment platform - Seite 2

Partners Group research estimates the total private markets royalty market to be worth more than USD 1 trillion today and forecasts further rapid growth. Private markets royalties can offer attractive risk-adjusted returns, long-term predictable cash flows, low correlation to broader markets, and a hedge against inflation. As such, the firm believes royalty assets can be an effective tool for stabilizing and diversifying traditional private markets portfolios.

Royalties will be made available to Partners Group's investors through the firm's range of bespoke solutions, which includes its tailored mandate solutions for existing and new institutional clients and its structured private wealth products. The firm plans to offer the strategy in an evergreen fund structure that could be eligible for investment by private wealth investors, who currently have limited opportunities to gain exposure to private markets royalties. 

Stephen Otter, Managing Director and Head of Private Markets Royalties, Partners Group, adds: "In building out our private markets royalty business, we are differentiating from the industry standard on two key points. Firstly, by considering a larger set of royalty opportunities across sectors, we will play to Partners Group's strength of applying a relative value approach to selecting the most attractive investment opportunities for our clients. Secondly, by using an evergreen structure instead of a closed-end fund, our client offerings will be better aligned to the longer duration of the underlying royalty investments."

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[1] A royalty is a contractual payment to the owner of an asset by a third party for the right to the ongoing use of that asset. The asset owner typically receives a percentage of the gross or net revenue generated from the asset in question.

About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested USD 210 billion in private equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns with lasting, positive impact for all its stakeholders. With USD 147 billion in assets under management as of 31 December 2023, Partners Group provides an innovative range of bespoke client solutions to institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,900 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn.