Partners Group deployed $1.4 billion through secondaries investments during the first half of this year, with younger-vintage funds taking precedence.
Speaking on the firm’s earnings call Tuesday, co-chief executive officer David Layton said he was pleased that much of the pre-crisis large buyout dealflow had “worked its way through the system”.
“We are pursuing a number of smaller transactions that are a little bit young in terms of vintage,” he said. “There’s more upside, frankly.”
The firm is also opportunistically targeting large, complex portfolios made up of different geographies and asset classes.
“Our competitors are trying to buy out individual segments of the portfolio,” Layton said. “We are able to leverage the global breadth and multi-asset class experience we have to take down the entire portfolio and offer a one-stop solution.”
Partners Group invested a total of $6.9 billion in the first half, with secondaries accounting for around 20 percent. This proportion was 24 percent, or $1.9 billion, in the first half of 2018, when it invested in $7.7 billion-worth of transactions.
In its 2019 Private Markets Navigator report published in November, Partners Group said it was slightly underweight on all types of mature secondaries going into 2019 with the exception of emerging markets venture capital. High pricing in LP transactions was the main discouraging factor, co-head of private equity integrated investments Americas Anthony Shontz told Secondaries Investor at the time.
Partners Group’s last dedicated private equity secondaries fund closed on its €2.5 billion target in 2016 after a year in the market, according to Secondaries Investor data.