Shares of major private market investment firms fell sharply on Wednesday after Switzerland-based Partners Group announced it was capping withdrawals from its $8.6 billion Global Value SICAV fund. The redemption cap automatically triggered when total net withdrawal requests during the second quarter exceeded 5% of the fund's net asset value, reigniting investor concerns about liquidity across the alternative asset management industry.
Partners Group shares dropped 16% in Zurich trading, and the selloff quickly spread to other firms. In the United States, Blackstone fell 4.46%, KKR declined 4.18%, Ares Management lost 4.3%, and Blue Owl Capital dropped 2.9%. European peers also suffered, with EQT falling 6.5%, CVC Capital Partners down 7.5%, and Bridgepoint Group declining around 9.8%.
Partners Group CEO David Layton attributed most of the redemption pressure to individual investors, even though institutional clients make up roughly 80% of the firm’s investor base. He noted that the 5% cap is a key feature of the fund and was not triggered by any operational issue. Bloomberg reported that nearly twice the allowable level of redemption requests had been submitted.
The event highlighted broader liquidity fears in private market funds, where investors often face withdrawal restrictions due to illiquid underlying assets. Partners Group said volatility that began in private credit strategies had gradually spread to private equity investments. The fund's top holdings include several technology companies, adding to jitters about exposure to AI-driven disruption.
On Thursday, Partners Group warned that fundraising activity could slow in the second half of 2026 and into 2027 as redemption activity in its evergreen funds weighs on net asset growth. The firm reaffirmed its 2026 gross fundraising forecast of $26-$32 billion but noted that two evergreen funds were particularly affected: the Luxembourg-based Global Value SICAV saw redemption requests hit 9.8% of assets, and a Delaware-based fund reached 6%. The company said it maintains sufficient liquidity through distributions and an undrawn credit facility, and both funds remain open to new investments.
KKR faced additional pressure from a Fitch report maintaining a negative outlook on FS KKR Capital Corp. due to asset quality issues, along with recent analyst downgrades and a $900 million debt offering priced at 7.5%, underscoring rising funding costs.
