Switzerland-based Partners Group said on Thursday that it expects fundraising activity to slow in the second half of 2026, with the trend likely to continue into 2027, as uncertainty surrounding redemptions from its open-ended evergreen funds weighs on growth prospects.
The company disclosed that it had capped withdrawals from an $8.6 billion private equity fund, a move that has renewed investor concerns over the risks associated with alternative investment products.
The development also contributed to a broader decline in shares of global asset managers as market participants assessed the implications of increasing redemption pressures.
Fundraising outlook remains intact for 2026
Despite concerns over redemptions, Partners Group reaffirmed its forecast for gross new client demand in 2026.
The firm said it continues to expect gross fundraising of between $26 billion and $32 billion during the year.
According to the company, the outlook is supported by what it described as “a large and visible pipeline of fundraising opportunities across mandates, evergreens and traditional closed-ended programmes.”
The asset manager indicated that fundraising is expected to exceed outflows during the first half of 2026.
However, it cautioned that the pace of growth could moderate in the latter part of the year as redemption activity within its evergreen platform continues to affect net asset growth.
Evergreen platform could weigh on asset growth
Partners Group said the impact of redemptions could become more visible during the second half of 2026 and extend into the following year.
The statement highlights the growing influence of redemption activity in evergreen investment vehicles on overall assets under management, even as the firm continues to attract new capital.
Industry-wide volatility spreads across private markets
Partners Group, which manages approximately $185 billion in assets, attributed the pressure on its evergreen funds to broader volatility across the alternative investment industry.
The company said the industry-wide turbulence initially emerged in private credit strategies before spreading into private equity markets.
As investors seek liquidity, evergreen funds across the sector have experienced heightened redemption activity.
According to Partners Group, two of its evergreen funds have been particularly affected by withdrawal requests.
The Luxembourg-based Partners Group Global Value SICAV recorded redemption requests amounting to 9.8% of the assets held in the fund.
The company also reported that repurchase requests for a Delaware-based fund had reached 6%.
The increase in withdrawal requests has prompted the firm to take measures aimed at managing liquidity and maintaining stability within the affected vehicles.
Investor Focus on Liquidity Risks
The disclosure underscores growing investor attention on liquidity management within evergreen private market funds.
These investment vehicles have become increasingly popular because they provide ongoing access to private market strategies while offering periodic liquidity to investors.
However, rising redemption requests across the sector highlighted the challenges asset managers face when balancing investor withdrawals with investments that are typically less liquid.
Partners Group’s comments suggest that while demand for its investment products remains strong, redemption activity within evergreen funds could temper overall growth in assets under management over the coming quarters and into 2027.
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