This article first appeared on GuruFocus .
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NAV Growth:Up 2.1% in Q3 2025.
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Share Price Increase:Gained 6% in Q3 2025.
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Dividend:Second interim dividend of EUR0.375 per share announced, with a full-year dividend yield above 7%.
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Share Buyback Program:Board approved up to EUR15 million for share buybacks.
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Investments:EUR42 million invested year-to-date, with EUR21 million in Q3 2025.
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Distributions:EUR65 million received by end of September 2025.
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Liquidity:EUR2 million in cash and cash equivalents, with an undrawn credit facility of EUR111 million.
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EBITDA Growth:Last 12 months' EBITDA growth stable at 10%.
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Leverage:Stable at just below 6 times net debt-to-EBITDA.
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Portfolio Realizations:Exits from PCI Pharma Services, Techem, Clario, and ISP expected to drive significant distributions.
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Distribution Rate:Trailing 12-month distribution rate at circa 10% of NAV, expected to double in coming months.
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Prospective Dividend Yield:About 7.5% for 2025.
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Discount to NAV:Current discount around 25% to 26%, compared to a 10-year average of 19%.
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Release Date: November 20, 2025
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 ) delivered solid results in Q3 with a NAV increase of 2.1% and a share price gain of 6%.
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The company announced a second interim dividend of EUR0.375 per share, bringing the full-year dividend yield above 7%.
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A share buyback program of up to EUR15 million was approved, signaling a commitment to managing the discount and creating shareholder value.
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The portfolio showed resilience with a 2.6% value accretion in Q3, despite FX headwinds.
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Liquidity remains robust with EUR2 million in cash and an undrawn credit facility of EUR111 million, recently renewed at better terms.
Negative Points
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Year-to-date NAV is slightly negative due to FX headwinds, particularly the weakening of the US dollar against major currencies.
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The macroeconomic environment remains challenging, with trade tensions and fiscal shifts impacting markets.
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The discount to NAV is around 25% to 26%, which is higher than the 10-year average of 19%.
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Some investors express concern that the company may not devote enough attention to a product that represents only 1% of AUM.
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The valuation uplift has decreased compared to previous years, raising questions about future NAV returns.
Q & A Highlights
Q: Cyrill, can you comment on the valuation uplift and the decrease in expected uplifts compared to previous years? A: Cyrill Wipfli, Advisory Partner: The focus is on achieving true and fair value, avoiding under-promising and over-delivering. The aim is to have valuations that reflect the actual value, ensuring that exits are at or slightly above NAV. This year, exits have been at NAV or a 5-10% premium, which is positive given the current 25% discount to NAV in the market.
Q: Federica, do you plan to sell more of Vishal, and if so, when? A: Federica Cazzaniga, Senior Portfolio Manager: The stock has performed well, up approximately 35% year-to-date. A block sale was executed in June 2025, with a 150-day lockup expiring soon. Depending on stock performance, more realizations may occur, potentially driving distributions into 2026.
Q: What distributions do you expect for next year, and can you discuss the pipeline of new investments? A: Federica Cazzaniga, Senior Portfolio Manager: We expect to revert to a 20% NAV run rate by the end of 2025, approximately EUR200 million, with similar expectations for 2026. The pipeline for new investments is anticipated to normalize, with 10-15% of NAV in new investments, aligning with historical averages.
Q: Considering macroeconomic challenges, what kind of NAV return per annum should investors expect? A: Cyrill Wipfli, Advisory Partner: Excluding this year's unusual FX impact, the last 6 and 10 years have seen a 10% net return. Private equity direct investments have achieved a 15% net return over the last decade, targeting double-digit returns in the long run.
Q: How has the macro environment impacted NAV, and what are the expectations moving forward? A: Cyrill Wipfli, Advisory Partner: The US dollar's weakness has been a significant headwind. However, excluding this year's FX impact, the portfolio has historically delivered strong returns. The focus remains on achieving double-digit returns over the long term.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
