This article first appeared on GuruFocus .
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Net Asset Value (NAV) per Share:EUR13 per share as of December 31, 2025.
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Total Return:Negative 8.7%, including dividends paid to shareholders.
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Currency Headwind Impact:Accounted for almost 6% of the negative total return.
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Realizations:EUR227 million received in 2025, the highest level since 2021.
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Investments:Just above EUR102 million invested in 2025.
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Dividends Paid:Almost EUR52 million paid to shareholders.
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Share Buybacks:Almost EUR6 million deployed into share buybacks.
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Total Return to Shareholders:Almost EUR58 million through dividends and buybacks.
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EBITDA Growth:7.2% LTM EBITDA growth across the portfolio.
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Portfolio Multiple:16.6x with net debt at 6.1x.
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Cash and Cash Equivalents:EUR8 million as of December 31, 2025.
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Credit Facility:Fully undrawn EUR150 million credit facility.
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Release Date: March 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Partners Group Private Equity Ltd ( LSE:PEY ) reported EUR227 million in realizations for 2025, the highest level since 2021, indicating strong distribution activity.
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The company maintained a stable portfolio composition across vintages, supporting long-term value creation.
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Investments in 2025 amounted to EUR102 million, aligning with the company's long-term strategy of investing roughly 10% of NAV annually.
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The company returned almost EUR58 million to shareholders through dividends and buybacks, demonstrating a commitment to shareholder returns.
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Partners Group Private Equity Ltd ( LSE:PEY ) has a diversified portfolio with over 70 direct investments, providing resilience in the current macroeconomic environment.
Negative Points
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The company reported a total return of negative 8.7% for 2025, impacted by currency headwinds and idiosyncratic challenges in a few companies.
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The geopolitical situation in the Middle East presents ongoing uncertainty, particularly affecting energy prices and potentially impacting portfolio companies.
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The weighted average holding period for the portfolio has reduced to below 5 years, indicating potential challenges in realizing value from longer-term investments.
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Three specific portfolio companies faced significant challenges, impacting overall performance, including KinderCare, AMMEGA, and a pharmaceutical company facing FDA-related issues.
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The company experienced a contraction in valuation multiples to 16.6x, reflecting broader market pressures and impacting portfolio valuations.
Q & A Highlights
Q: How does the current situation in the Middle East impact the portfolio? A: Fiona Gillespie, Private Markets Economist, explained that Partners Group has very limited exposure to the Middle East, with no direct investments in private equity in the region. Some portfolio companies may have minimal operational exposure, estimated at less than 0.5% of AUM. The key concern is how sustained oil and gas disruptions might affect portfolio companies, but overall, the impact is minimal. The events reinforce investment themes like energy security and efficiency, supporting a resilient portfolio.
Q: Can you comment on the listed exposure in the current market environment? A: Federica Cazzaniga, Senior Portfolio Manager, noted that the exposure to listed holdings was reduced throughout 2025 as the company monetized several positions. Despite market volatility, the outcomes from listed assets have been strong over the past 12 to 18 months. The company remains open to public listings as exit opportunities, although they acknowledge the risks involved.
Q: What are the future growth expectations for the portfolio, particularly regarding the 7% figure for the top 20? A: The unidentified company representative stated that the 7% growth figure is not the ambition, and efforts are underway to return to double-digit growth. Artificial intelligence is a significant driver, with 90% of companies having implemented AI initiatives. The focus is on strategic and operational improvements to enhance growth.
Q: What is the status of the share buyback program? A: Andreea Mateescu, Investor Relations, explained that the company announced a EUR15 million share buyback program in October, with EUR5.8 million used in Q4 2025 and an additional EUR6 million in Q1 2026. The program has been extended until April 30, 2026.
Q: How is the company addressing its software exposure, particularly with AI disruption? A: Federica Cazzaniga highlighted that the company has intentionally limited direct exposure to technology companies, focusing on those that benefit from AI adoption. The software exposure is approximately 13% of total NAV, aligned with the company's strategy. The company has been building an in-house AI team for over three years to integrate AI across investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
