Switzerland-based private markets investment management firm Partners Group has received record commitment of €6 billion ($7 billion) for a new private equity fund.
The firm said that the 2016/17 vintage fund consists of the flagship programme Partners Group Direct Equity 2016, which was capped at €3 billion, and an equal amount of additional capital committed to direct private equity.
The Swiss investor follows other large global buyout firms in mopping up record amounts of capital in recent months. Last week, Apollo Global Management raised $24.6 billion, the largest ever PE fund. In June, PE giant KKR mobilised $9.3 billion for its largest Asian buyout fund.
Partners Group has already made investments from the new fund, including in India-based Aavas Financiers Ltd, formerly known as AU Housing Finance Ltd.
The firm set up its India office in 2014 and had been looking to ramp up its investments in the country. Initially, the firm was a limited partner, or investor, in other PE funds in India. In 2013, however, it struck a control deal when it acquired a majority stake in CSS Corp for $270 million from its previous fund.
Partners Group said in a statement that it raised capital from a mix of new and existing clients, including public and corporate pension plans, sovereign wealth funds, insurance companies, endowment funds and foundations from around the world.
Partners Group’s founders, partners and other employees, together with affiliates of the firm, are making a substantial investment into the programme, committing in excess of 5% of Partners Group Direct Equity 2016, the firm added.
This fund is a successor to Partners Group Direct Equity 2012. Like the previous vehicle, the new fund would invest in mid-market and select large-cap companies across a broad range of industry sectors, including healthcare, education, business services, information technology, industrials and consumer, the firm said.
“In a sluggish macroeconomic environment, we are concentrating our efforts on specific market niches that are experiencing above-average growth,” according to David Layton, partner and head of private equity at Partners Group.
“Within these pockets of growth, we look for companies with recurring revenue streams and highly visible cash flows, which are not only well-positioned to perform during a variety of economic scenarios but show significant upside potential and a clear path to value creation,” he added.
The firm said it looks to capitalize on trends such as healthcare and information technology outsourcing, the digitalization of business services and consumer companies, and the emergence of new business models in consumer services and social infrastructure.
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