Partners Group eyes gating withdrawal as private credit liquidity pressures build

Partners Group has indicated it is prepared to restrict investor redemptions if outflows from its private market funds rise above certain thresholds, as the wider private credit and alternative asset sector grapples with increased liquidity stress, according to a report by the Financial Times.

The Swiss-listed alternative asset manager, which oversees roughly $185bn in assets, said any decision to “gate” withdrawals would be taken only if redemption levels exceeded predefined limits. Executive chair Steffen Meister said the firm had not yet needed to activate such measures, but would do so if conditions required it.

The comments come as private markets face a period of elevated investor withdrawals, particularly in retail-accessible private credit vehicles. Across the industry, more than $20bn in redemption requests were recorded during the quarter, affecting a range of large managers including Apollo Global Management, Ares Management, Blackstone Inc, Blue Owl Capital and KKR & Co.

Gating mechanisms, which cap the amount investors can withdraw over a given period, have increasingly been used across the sector as a tool to manage liquidity in inherently illiquid asset classes. While sometimes controversial among investors, proponents argue they help prevent forced asset sales and protect remaining holders in the fund.

Partners Group said the measures were intended to support transparency in what it described as a “complex” market environment, noting that its shares have declined by around 17% year-to-date amid broader pressure on alternative asset valuations.

Despite redemption pressure, the firm reported $8.3bn in new client demand in the first quarter, equivalent to an annualised pace near the top end of its full-year guidance range. At the same time, it invested $2.8bn while distributing $5.7bn back to clients through realised exits.

Executives characterised current conditions as a “managed outflow” phase rather than a systemic liquidity crisis, pointing to shifting investor allocation patterns and moderating returns as key drivers behind increased withdrawals.