Partners Group laments ‘very ambitious’ market valuations

Pricing has reached 'unusually high levels', according to the investment firm's chairman.

Swiss investment firm Partners Group has warned investors of an increase in prices which have now “reached unusually high levels”.

Speaking following the company’s annual general meeting last week, Peter Wuffli, chairman of Partners Group, said the trend was occurring across the private equity, real estate, infrastructure and private debt sectors it is active in.

“We are operating in a market environment characterised by low global growth and meaningful tail risks, in which prices across asset classes have reached unusually high levels,” he explained.

Despite the difficult investment environment, the firm has positioned itself to succeed as a leading global private markets investment manager, Wuffli added.

“However, while we look confidently ahead and re-confirm our current year’s guidance to the market, the very high multiples in public markets, including that of our own firm, may have reached very ambitious levels,” he said.

The firm invested $1.8 billion in globally diversified private markets portfolios last year, accounting for 15 percent of total investments.

Partners said in its 2016 annual report, which was approved at last week’s meeting, that the current market environment has warranted “a highly selective investment approach” and it is pursuing investments that have more value-creation potential.