Partners Group raises $2b for PE direct investment program

Partners Group Direct Investments 2012 is the firm's third global private equity direct program. Like its predecessors, the program will have a particular focus on the mid-market, which Partners Group believes presents the best opportunity for reasonably priced deal flow in a competitive environment.

The firm acquired a majority stake in India-based IT services provider CSS Corp. in May 2013 for $270 million, providing an exit for SAIF India, Goldman Sachs and Sierra Ventures. The private equity firms had bought out the founders and assumed control of the business several years earlier.

Partners Group's first direct deal in Asia came in May 2012 when it purchased Navis Capital Partners' majority position in garment label manufacturer Trimco International Holdings. The price was not disclosed but Navis reaped $111.4 million, including exit proceeds and dividends.

During the fundraising period, more than 1,600 companies were screened, resulting in 10 investments and the Partners Group value creation team is working with several of these companies. One third of the corpus had been deployed by the final close.

The LP base comprises a mixture of new and existing institutional investors, including public and corporate pension plans, endowment funds and foundations, insurance companies and financial institutions. There were also private commitments from entrepreneurs and business leaders in Partners Group's network - individuals who provide sector expertise and deal-sourcing support to the firm.

"Now more than ever, value creation is the key to successful private equity investing. Large-cap assets continue to trade at high EV/EBITDA multiples due to their perceived safety in the current economic environment, leaving the buyer little scope to achieve attractive returns," Dr. Stephan Schäli, partner and head of private equity at Partners Group, said in a statement.

"In contrast, the small to mid cap space globally continues to offer great potential for value creation to those firms with the right expertise to work closely with their portfolio companies."

Direct investment and secondaries have become strategic priorities for Partners Group. In the first half of 2013, the firm invested $3.3 billion across its entire platform, with directs and secondaries accounting for 33% and 43%, respectively. Approximately 20% was deployed in Asia and other emerging markets.

A total of 39 direct investments were made - nine in private equity, 25 in direct credit, three in private real estate and two in private infrastructure.

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• Topics
• Investments
• Fundraising
• Partners Group
• Asia
• buyout
• Secondaries
• Fundraising