Partners Group Names New Co-CEOs as Performance Concerns Hit Shares and Profit
Partners Group Faces Leadership Changes Amid Financial Challenges
CEO Transition and Management Rotation
ZURICH, Sept 1 (Reuters) - Swiss private equity firm Partners Group said on Tuesday its CEO was stepping down and warned its performance income would be lower than expected, hitting its shares again as the company battles concerns about the performance of its funds and client exits.
Client Withdrawals and Market Environment
Zug-based Partners Group has pioneered alternative investments for wealthy retail clients, but in June moved to cap significant client withdrawals, highlighting wider concerns about the returns private equity managers are generating.
Impact on Shares and Profit
Its shares have lost about a third of their value this year, and dropped 7% on Tuesday following the publication of results that showed a 13% year-on-year fall in first-half net profit to 502 million Swiss francs ($620 million).
Analyst Commentary on Investor Sentiment
"Partners Group cannot escape the challenging market environment in the short term. However, demand for private-market investments remains intact, particularly among institutional investors. Retail investors, by contrast, are noticeably more nervous and are still withdrawing money from these vehicles," Luzerner Kantonalbank analysts said.
Leadership Changes and New Appointments
CEO David Layton's New Role
CEO David Layton will step down from the executive team on January 1, but remain with Partners Group as chief investment officer. Chairman Steffen Meister said the move was part of a management rotation, without giving further details.
Appointment of Co-CEOs
Roberto Cagnati and Juri Jenkner, who have both been with the company since 2004, will become co-CEOs.
Financial Outlook and Performance Guidance
Client Assets and Revenue Expectations
Partners Group confirmed it expected total new client assets of between $26 billion and $32 billion for the full year.
Performance Income Projections
Depending on the timing of select active direct exit processes, performance income is expected to be around 20% to 25% of total revenue in 2026, the company said, below its mid- to long-term guidance of 25% to 40%.
Exit Pipeline and Future Outlook
"Our exit pipeline remains full," outgoing CEO David Layton said, adding that some exit processes are likely to shift into 2027.
Reporting Credits
(Reporting by Ariane Luthi, Editing by Louise Heavens, Kirsten Donovan)
