Partners Group (OTCPK:PGPH.F) Update / briefing January 14, 2026 12:15 PM ET Company ParticipantsDavid Layton - CEORoberto Cagnati - Partner, Chief Risk Officer and Head of Portfolio SolutionsJoris Groflin - CFOConference Call ParticipantsGregory Simpson - Senior Equity AnalystHubert Lam - Director and Senior Equity Research AnalystMate Nemes - Senior Equity Research AnalystNicholas Herman - Director and Equity Research AnalystOperatorGood day, and thank you for standing by. Welcome to the Partners Group's ...

Group 1: Gold Market Outlook - The long-term bullish trend for gold remains intact despite recent price corrections, with a target price of $5,100 per ounce expected in the second half of 2026 due to currency devaluation risks, geopolitical uncertainties, and central bank gold purchases [1][2] - The report highlights a significant rebound in gold prices, which rose by 32.4% from August to October 2025, followed by a nearly 10% correction, viewed as a healthy profit-taking phase rather than a shift in the long-term upward trend [2] - Central banks are projected to purchase between 750 to 900 tons of gold in 2025, continuing a trend of over 1,000 tons annually from 2022 to 2024, with the total value of gold reserves held by central banks surpassing that of U.S. Treasury bonds [2] Group 2: Alternative Assets and Private Equity - The report emphasizes the end of the "Easy Alpha" era, suggesting that investors should focus on alternative assets, particularly private equity, which currently shows a valuation gap of 4.1 times compared to public markets, the most attractive level in a decade [3] - The anticipated decline in financing costs due to the Federal Reserve's interest rate cuts is expected to boost IPO and merger activities, with a revival in exit activities projected for 2026 [3] Group 3: Investment Strategies - To address the liquidity challenges associated with alternative assets, the report recommends using "Evergreen Funds" as a tool for allocation, which can provide early returns and redemption flexibility while achieving comparable long-term returns to traditional closed-end funds [4] - A mixed investment portfolio that includes both public and alternative assets is advised, utilizing private assets to smooth market volatility and employing statistical techniques for more accurate risk assessment to enhance risk-adjusted returns [4]

Core Viewpoint - The private credit industry, valued at $2.2 trillion, is experiencing a buildup of risks despite its perceived stability compared to traditional banking financing [1] Group 1: Growth of Evergreen Investment Tools - Evergreen investment tools are gaining popularity, particularly in the debt sector, with Blackstone's private credit fund (BCRED) managing $81 billion as of March 31, up from $45 billion three years ago [2] - Private debt management companies raised $67 billion through evergreen tools last year, accounting for about one-third of their total fundraising from major institutional supporters [2] Group 2: Characteristics of Evergreen Funds - Evergreen funds have three key differences from traditional private credit: they are perpetual, allow investors to withdraw funds as needed (with a quarterly limit of 5% of net asset value), and attract a broader audience, including retail investors [5] - The private credit industry has achieved positive returns annually since 2010, with an average return rate of 9.4% [5] Group 3: Concerns and Risks - There are concerns that during a crisis, redemption requests could impact the entire private credit market, as funds may struggle to sell illiquid assets at favorable prices [6] - The rapid growth of the industry may attract less experienced investors, increasing the risk profile of loans and potentially leading to unexpected losses [8]