Two weeks have now passed since Donald Trump wielded the tariff hammer. Although the U.S. President has largely suspended the executive order signed on April 2, 2025, the shock on the stock markets remains deep. The SMI is trading more than 1,000 points below its level at the end of March. Within the Swiss benchmark index, the tariff blow has hit Partners Group particularly hard. After the U.S. President announced reciprocal import duties, the financial investor’s market capitalization dropped by nearly a quarter at its lowest point. At one point, the Partners Group share price dipped into triple digits for the first time since autumn 2023. Although the stock has since climbed back above CHF 1,000, it still shows a loss of around 14% for April as of just before Easter. The sharp correction is driven by concerns that U.S. trade policy could hurt the profits of the Zug-based firm’s portfolio companies.
One week after Donald Trump’s headline-making appearance, Partners Group responded. In a press release, management quantified the impact of U.S. tariffs on the portfolio. More than 75 active investments were scrutinized. Overall, the import duties could reduce the operating profit (at the EBITDA level) of the private equity holdings by 1% to 3%. In the infrastructure segment, those in charge see potential impacts on supply chains for six of the total 36 assets. Partners Group explicitly noted that potential indirect consequences of U.S. trade policy were not assessed. According to Jonathan Progin, editor at Finanz und Wirtschaft, the correction in equities and bonds may have increased the relative importance of the relatively stable private market investments held by institutional investors. As a result, he believes that capital inflows from this segment might dry up. In 2024, Partners Group raised a total of USD 22 billion – 18% more than the previous year.
"The fewer new funds raised, the less investment capital is available," notes the FuW author. However, he believes a decline in capital commitments would not have severe consequences. "Partners Group manages over USD 150 billion and earns reliably predictable management fees," emphasizes Progin. Indeed, assets under management (AuM) have grown steadily in recent years. From 2013 to 2024, the average annual growth rate was 12%. According to the expert, Partners Group has successfully diversified its client base during this period and is no longer reliant solely on institutional investors. “Most capital commitments now come from mandates and evergreen funds,” the editor explains. A glance at the current financials supports his point. Of the new funds raised in 2024, 39% flowed into so-called evergreen structures. These are long-term oriented funds with a degree of liquidity – making private equity more accessible to high-net-worth individuals.
To navigate current turbulence, Partners Group is also drawing on experience. According to Roberto Cagnati, Chief Risk Officer and Head of Portfolio Solutions, some evergreen funds have a track record of more than 20 years. During this time, they have weathered both the financial crisis and the COVID pandemic. "We have emerged stronger from every market cycle because we prioritize sustainable growth and prudent risk management," the senior executive explains. Accordingly, the company is not backing down from the targets presented just this March. At this year’s Capital Markets Day, Partners Group forecast growth exceeding that of the broader private equity market. Specifically, AuM is projected to grow to over USD 450 billion by 2033. “Tripling assets under management has become more challenging, but the goal is not unrealistic,” says Jonathan Progin. All in all, the FuW editor views the sharp drop in Partners Group’s share price as a buying opportunity – even if the upside potential may be limited over the next 12 months.
It’s fitting, then, that the SMI-listed stock is part of Leonteq’s recent expansion. The Zurich-based fintech company has entered the leveraged product market. As part of this push, more than 30 mini-futures and knock-out warrants on Partners Group have already been listed on the SIX Swiss Exchange – both long and short variants. Investors can thus bet with leverage on a recovery in the stock (long) or a renewed downturn (short). A much more defensive option is the new soft-callable barrier reverse convertible. Here, investors receive a coupon of 8.00% p.a. – regardless of how the Partners Group share price performs. The nominal is partially protected: as long as the underlying does not hit or fall below 59% of its initial level, the issuer repays the invested capital in full. If that buffer proves insufficient, the partial protection lapses. In this case, the BRC would be fully exposed to the risks of Partners Group. Please also note the soft-callable feature, which allows for early termination and repayment of this issue.
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