Summary of Partners Group Capital Markets Day - March 10, 2026 Company Overview - **Company**: Partners Group (OTCPK: PGPH.F) - **Industry**: Private Markets Investment - **Assets Under Management**: $185 billion, with 75% in equity strategies and 25% in credit strategies [3][4] Key Points and Arguments Company Heritage and Approach - Partners Group originates from Switzerland, differentiating itself from peers based in New York or London, leading to a unique client-centric and bespoke portfolio construction approach [2][3] - The firm emphasizes a hands-on, transformational approach to building companies, focusing on strategic dynamics rather than just financial metrics during board meetings [5][6] Performance Metrics - Private equity business has $86 billion in assets, achieving an 11% CAGR over the last 5 years and a realized outcome of 19.8% historically [7] - Private credit business stands at $40 billion, with a bottom-up portfolio construction approach [8] - Infrastructure assets have grown to $36 billion, with an 18% CAGR over 5 years, and have never recorded a realized loss [8][9] Real Estate and Royalties - Real estate assets total $22 billion, with a shift towards niche allocations and vertical integration, exemplified by the acquisition of Empira [9][10] - The royalties business has reached $1 billion in assets, with significant growth potential as clients seek alternative credit solutions [10][11] Client-Centric Strategy - Partners Group focuses on understanding client objectives and building custom solutions, leading to a loyal client base and diversified revenue streams across 350 different solutions [12][13] - The firm has benefited from increasing allocations of institutional investors to private markets, with expectations for the industry to grow from $15 trillion to $30 trillion [14][16] Market Dynamics and Future Outlook - The firm anticipates a bifurcation in the private markets, with a need for customization and innovative solutions to meet evolving client needs [15][16] - The leadership team is focused on strategic partnerships for distribution and consolidation of manufacturing capabilities, with a strong emphasis on securing distribution partnerships [29][30] Investment Strategies - The firm is developing new strategies in infrastructure, private equity yield, and special opportunities, while also expanding its mandate offerings in underrepresented regions like Asia-Pacific and the Middle East [31][32] - The investment environment is characterized by significant changes, including the rise of AI technology and evolving client demands, which are expected to create new opportunities [34][36] Sector-Specific Insights - **Private Equity**: Emphasis on business transformation and data strategy as key drivers for success [39][42] - **Infrastructure**: Focus on next-generation utilities and the integration of technology for energy production and management [45][47] - **Real Estate**: Shift towards operational intensity and vertically integrated platforms to meet dynamic tenant demands [49][51] - **Credit**: Anticipation of increased default rates and the need for a more selective, alpha-driven approach to credit underwriting [54][57] - **Royalties**: Growth in intangible assets and the use of royalty financing as a flexible funding solution for businesses [62][64] Additional Important Insights - The firm has successfully reduced the minimum investment for separate accounts from $500 million to $50 million, allowing for greater customization and accessibility for clients [24][25] - The leadership team expresses optimism about the future, citing a differentiated setup that positions the firm well for the next decade [36][37]