Partners Group Private Equity Limited reported an 8.6% decline in net asset value (NAV) on a total return basis for the first half of 2026, driven by underperformance in four key portfolio companies. The NAV per share stood at EUR 11.57 as of the June 30 reporting date, with currency movements providing a partial offset of +1.0%, while expenses reduced returns by 1.4%. The company’s shares traded at a 38.8% discount to NAV, valuing them at EUR 7.08.
The four main detractors—USIC, Emeria, Pharmathen and Ammega—contributed a combined -6.4% to the NAV decline, representing 11% of the portfolio’s total NAV. Pharmathen, which has faced manufacturing disruptions since Q3 2024 and an FDA Import Alert in April 2026, was fully written down to 0.0% of NAV. Despite these challenges, Partners Group returned EUR 111 million in distributions to investors during the period, equivalent to 14% of net assets, alongside EUR 22 million in dividends and EUR 13 million in share buybacks.
The portfolio’s direct private equity investments remained broadly resilient, with 64% operating on or above plan. Top 20 portfolio companies reported a last-12-month EBITDA growth of 4.5%, below the historical range of 13–15%, while valuation multiples stood at 16.8x EV/EBITDA and net debt/EBITDA leverage at 6.9x. Realized gross investment multiples varied by vintage: mature investments averaged 2.7x, inflection-stage assets 1.2x and younger holdings also 1.2x. Notable exits included Vishal Mega Mart, which exceeded an 8.5x multiple on partial realization, Galderma at over 3.5x and Convex Group at greater than 2.5x.
Geographic exposure remained concentrated in Europe (45%) and North America (44%), with Asia-Pacific at 7% and the rest of the world at 4%. Industry allocation skewed toward industrials (28%) and healthcare (16%), while performance buckets showed 23% of NAV outperforming, 41% on plan, 23% with delayed uplift and 13% challenged. Partners Group also highlighted strong adoption of artificial intelligence across its portfolio, with 90% of direct lead investments implementing at least one AI initiative compared to 35% among large U.S. firms, and identified over USD 170 million in EBITDA opportunities from AI adoption.
Looking ahead, the company expects portfolio recovery to historical EBITDA growth levels by 2027 and anticipates continued realization momentum with distributions expected over the next 6–12 months. Five new signed investments are slated for execution in the second half of 2026, and the firm’s dual share class structure is targeted for implementation between October and November 2026, following a circular and prospectus publication in early September.
