Partners Group Unveils Private Equity-Focused Eltif 2.0

Partners Group has introduced a new private equity European long-term investment fund (Eltif), expanding its offerings for retail investors.

The Partners Group Private Equity Evergreen sets a minimum investment threshold of €10,000 and allows investors the flexibility to adjust their investment on a monthly basis. It will be accessible to investors across Europe, including Germany, France, Spain, Italy, and the Benelux regions.

As the firm's first private equity fund under the updated Eltif regime, the Partners Group Private Equity Evergreen incorporates characteristics sought after in semi-liquid funds, including fully paid-in shares, absence of capital calls, flexibility, and access to institutional portfolios.

The ELTIF regime provides investors with a certain degree of protection by limiting risk factors such as fund level leverage

Markus Pimpl, Managing Director at Partners Group

The fund will primarily make direct private equity investments, allocating 80% of its portfolio directly rather than focusing on fund investments. It offers monthly liquidity, with gates implemented to safeguard investors in case of excessive redemptions.

The investment themes of the Partners Group Private Equity Evergreen span across digitization and automation, new living, sustainability, and decarbonization. These themes are further segmented into a dozen sub-themes, such as alternative care models, smart cities, and personalized education.

Partners Group employs a rigorous research process, spending up to three years to scrutinize potential targets before investing. Recent additions to their portfolio include Breitling, Rosen, and VelvetCARE.

The fund aims to achieve broad diversification and liquidity through quality secondary and primary investments.

In regard to the Eltif 2.0 framework, Partners Group adopts a conservative approach, expressing a preference for stricter regulations, such as disallowing structural leverage at the fund level. While the firm may temporarily borrow for liquidity management, it remains cautious about inducing structural leverage in portfolios for private individuals.

Partners Group, with over €40 billion in assets in private wealth solutions, currently offers four Eltif options:

1. Partners Group Private Markets ELTIF SICAV-SIF
2. Partners Group Direct Equity ELTIF SICAV
3. Partners Group Direct Equity II ELTIF SICAV
4. Partners Group Private Markets II SICAV