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Partners Group / Key word(s): Miscellaneous
Partners Group adds private markets royalties to its investment platform
2024-03-18 / 07:00 CET/CEST
Baar-Zug, Switzerland; 18 March 2024
. The firm is launching the industry's first dedicated, scalable multi-sector royalty strategy, targeting a
fast-growing addressable market of over USD 1 trillion
. Royalties represent the fifth asset class on Partners Group's private markets platform
. Client offerings will include a private markets royalty evergreen fund
Partners Group, a leading global private markets firm, has added private markets royalties[1] as a fifth asset class
alongside private equity, infrastructure, private credit, and real estate. The firm is leveraging its global platform
to build the first dedicated, scalable multi-sector royalty offering that invests in both well-established royalty
sectors, such as intellectual property assets across the pharmaceuticals and entertainment industries, as well as
emerging high-growth royalty sectors like the energy transition, sports, and brands.
Partners Group's royalty business is headed by Stephen Otter, who has joined the firm as a Managing Director based in
Zug. Mr. Otter, who has close to 20 years of relevant investment industry experience, will lead an experienced royalty
investment team with an established seed portfolio. The team will be integrated into the wider Partners Group platform
and will benefit from the firm's existing network, expertise, and portfolio insights.
Juri Jenkner, Partner and President, Partners Group, comments: "We have high conviction in private markets royalties as
an asset class that complements our existing private markets offerings. Royalties have seen strong growth in recent
years, with greater applicability across the economy, including in many of our target private equity and infrastructure
themes such as healthcare and the energy transition. The breadth of our global platform, combined with our deep
expertise in relevant sectors, means we are well-positioned to apply our thematic sourcing approach to identifying the
most attractive royalty investment opportunities for our clients."
Partners Group research estimates the total private markets royalty market to be worth more than USD 1 trillion today
and forecasts further rapid growth. Private markets royalties can offer attractive risk-adjusted returns, long-term
predictable cash flows, low correlation to broader markets, and a hedge against inflation. As such, the firm believes
royalty assets can be an effective tool for stabilizing and diversifying traditional private markets portfolios.
Royalties will be made available to Partners Group's investors through the firm's range of bespoke solutions, which
includes its tailored mandate solutions for existing and new institutional clients and its structured private wealth
products. The firm plans to offer the strategy in an evergreen fund structure that could be eligible for investment by
private wealth investors, who currently have limited opportunities to gain exposure to private markets royalties.
Stephen Otter, Managing Director and Head of Private Markets Royalties, Partners Group, adds: "In building out our
private markets royalty business, we are differentiating from the industry standard on two key points. Firstly, by
considering a larger set of royalty opportunities across sectors, we will play to Partners Group's strength of applying
a relative value approach to selecting the most attractive investment opportunities for our clients. Secondly, by using
an evergreen structure instead of a closed-end fund, our client offerings will be better aligned to the longer duration
of the underlying royalty investments."
[1] A royalty is a contractual payment to the owner of an asset by a third party for the right to the ongoing use of
that asset. The asset owner typically receives a percentage of the gross or net revenue generated from the asset in
question.
About Partners Group
Partners Group is a leading global private markets firm. Since 1996, the firm has invested USD 210 billion in private
equity, private real estate, private debt, and private infrastructure on behalf of its clients globally. Partners Group
seeks to generate strong returns through capitalizing on thematic growth trends and transforming attractive businesses
and assets into market leaders. The firm is a committed, responsible investor and aims to create sustainable returns
with lasting, positive impact for all its stakeholders. With USD 147 billion in assets under management as of 31
December 2023, Partners Group provides an innovative range of bespoke client solutions to institutional investors,
sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,900 diverse
professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and
Singapore. It has been listed on the SIX Swiss Exchange since 2006 symbol: PGHN). For more information, please visit
www.partnersgroup.com or follow us on LinkedIn.
Shareholder relations contact
Philip Sauer
Phone: +41 41 784 66 60
Email: philip.sauer@partnersgroup.com
Media relations contact
Jenny Blinch
Phone: +44 207 575 2571

Email: jenny.blinch@partnersgroup.com  
End of Media Release  
Language:     English 
Company:      Partners Group 

Zugerstrasse 57
6341 Baar
Switzerland

Phone:        +41 41 784 60 00 
Fax:          + 41 41 784 60 01 
E-mail:       partnersgroup@partnersgroup.com 
Internet:     https://www.partnersgroup.com/en/ 
ISIN:         CH0024608827 
Valor:        2460882 
Listed:       SIX Swiss Exchange 
EQS News ID:  1860439 

End of News EQS News Service
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1860439 2024-03-18 CET/CEST

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March 18, 2024 02:00 ET (06:00 GMT)