Partners Group Private Equity: A Portfolio Bellwether? - Downgrading to Underperform

Research evidence excerpt

Partners Group Private Equity: A Portfolio Bellwether? - Downgrading to Underperform

UK | Investment Companies

Partners Group Private Equity EquityJuneResearch25, 2026

RATING CHANGEA Portfolio Bellwether? - Downgrading to

RATING UNDERPERFORM (HOLD)Underperform

PRICE €7.50^

Emeria's very high gearing and refinancing risk means we see the potential

for a significant or even compete write-down of the equity currently held PRICE TARGET | NA |

by PEY in a restructuring scenario. As PEY's largest holding, representing 52W HIGH-LOW €10.90 - €7.96

7.7% of NAV, this may prompt investors to focus on the risks around other FLOAT (%) | ADV MM (USD) 85.7% | 0.93

portfolio companies, and so we downgrade to Underperform. MARKET CAP €505.5M | $575.4M

TICKER PEY LN

^Prior trading day's closing price unless otherwise

A portfolio bellwether? Emeria, a European real estate services provider, represented noted.

7.7% of PEY's NAV as at 30/04/26. Emeria has historically been acquisitive, completing

numerous debt-funded bolt-on acquisitions that have left it with high gearing. In their recent

downgrades of Emeria to 'CCC+', Fitch and S&P have highlighted debt to EBITDA of 11.3x

and 11.5x, respectively, at end-2025, although these figures reflect the agencies' own EBITDA

calculations, as opposed to Emeria's reported leverage of 8.5x EBITDA as at 31/03/26. Emeria

also faces near-term refinancing risk, with its RCF expiring in September 2027 and its senior

debt - which accounts for the bulk of its c.€3.4bn total debt - maturing in March 2028. According

to Bloomberg, this refinancing is expected to involve creditor discussions, with Partners Group

alongside minority investor TA Associates, reportedly due to inject c.€200m of equity as part

of the process (company has not commented).