Partners Group Private Equity (PEY) H2 2025 earnings summary

Executive summary

• NAV per share ended at EUR 13, with a total return of -8.7% for 2025, mainly due to USD weakness and currency headwinds accounting for nearly 6% of the decline.

• FY 2025 saw increased distributions and a healthy outlook for 2026, despite NAV being negatively impacted by USD depreciation and idiosyncratic portfolio challenges.

• Portfolio repositioning accelerated, with top 10 holdings now accounting for less than 40% of NAV and five previous top holdings experiencing liquidity events.

• Significant exit activity from mature assets drove strong liquidity and realization momentum.

• Portfolio remains diversified across vintages, industries, and geographies, with a weighted average holding period reduced to 4.6 years.

Financial highlights

• EUR 227 million in distributions and EUR 102 million invested in 2025, returning to long-term averages of 20% and 10% of NAV, respectively.

• EUR 52 million paid in dividends and nearly EUR 6 million deployed in share buybacks, totaling almost EUR 58 million returned to shareholders.

• LTM EBITDA growth of 7.2% across the portfolio, with portfolio multiple at 16.6x and net debt at 6.1x.

• Dividend of 0.75 EUR per share paid, with a prospective yield above 7%.

• Strong liquidity with EUR 150 million undrawn credit facility and EUR 8 million cash.

Outlook and guidance

• Portfolio well-positioned for future returns, with strong liquidity and a healthy balance sheet.

• Expectation of continued strong realizations and redeployment into attractive assets, with younger vintages showing double-digit EBITDA growth.

• Private equity valuations at the widest discount to public markets in 15 years, presenting an exceptional entry point.

• Borrowing costs have retreated 80% from post-COVID highs, supporting exit markets and future performance.

• Positive operational momentum expected to continue, with focus on reinvestment in attractively priced, high-quality businesses.