Swiss-headquarterted private equity firm Partners Group has announced the launch of a new private equity European Long-Term Investment Fund (Eltif), opening up its private offerings also to retail investors. The fund is its first new private equity fund under the updated Eltif regime.
The Partners Group Private Equity Evergreen was already registered in Luxembourg last December and has a minimum investment threshold of 10,000 euro. The fund will be available to investors across Europe, including Germany, France, Spain, Italy, and the Benelux regions.
The firm said the new fund incorporates characteristics associated with semi-liquid funds, investments that have some degree of liquidity but are not as easily or quickly converted into cash as more assets like listed securities. The fund includes fully paid-in shares, no capital calls, flexibility, and access to institutional portfolios, Partners said.
Evergreen
The ‘evergreen’ nature means that investors are permitted to increase or decrease the investment on a monthly basis, allowing for short-term adjustments as part of a long-term strategy. An evergreen investment fund is a type of investment vehicle that does not have a fixed termination date, as is the case at most private funds. Instead of having a predetermined lifespan, evergreen funds are structured to operate indefinitely. This means that investors can subscribe or redeem their investments at any time, providing ongoing opportunities for investment and liquidity.
The fund will primarily make direct private equity investments, allocating 80 percent of its portfolio directly rather than focusing on fund investments. It offers monthly liquidity, with gates in place to protect investors from excessive redemptions, the firm said.
Themes
Investment themes include digitisation and automation, new living, sustainability, and decarbonisation. These themes are further segmented into sub-themes, such as alternative care models, smart cities, and personalised education.
Partners Group said its research process can take up to three years to evaluate potential targets before investing. Recent additions to its portfolio include Breitling, Rosen, and Velvetcare. The fund aims for broad diversification and liquidity through quality secondary and primary investments.
In the context of the Eltif 2.0 framework, Partners Group said it prefers stricter regulations, such as disallowing structural leverage at the fund level. The firm may temporarily borrow for liquidity management but remains cautious about structural leverage in private portfolios.
Partners Group already offers four Eltif options registered via Luxembourg under the first generation of the EU rules for this type of fund. These include its Private Markets Eltif Sicav-SIF, registered in 2014, its Direct Equity Eltif Sicav registered in 2020, its Direct Equity II Eltif Sicav added in 2021, and its Direct Equity Eltif Sicav registered in 2016. Funds under the old EU rules were only available for qualified investors.