Geopolitical Tensions and Sector Concerns Weigh on Partners Group Shares

Despite posting robust 2025 results and announcing a multi-billion dollar exit, shares in Partners Group have slumped to their lowest point in the past year. The divergence between strong operational performance and share price weakness is being driven by a confluence of geopolitical instability and industry-wide apprehension regarding private credit exposures, particularly within the software sector.

Strong Operational Performance in 2025

Operationally, Partners Group delivered a powerful set of figures for 2025. Earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 19% to CHF 1.61 billion, while net profit increased by 12% to CHF 1.26 billion. The firm attracted USD 30 billion in new capital inflows, landing within its guided range of USD 26 to 31 billion. This surge propelled its assets under management to a total of USD 185 billion. A notable highlight was that 72% of these inflows were directed towards higher-margin bespoke solutions tailored for specific clients.

Shortly before releasing its annual figures, the company also disclosed the sale of atNorth, a pan-Nordic data center platform, to CPP Investments and Equinix. The transaction carried an enterprise value of USD 4 billion. Over a four-year period, the platform’s EBITDA multiplied twentyfold, generating an annual compounded return exceeding 30% for the firm’s clients.

Investor Conference Relocates from Abu Dhabi to Zurich

A tangible signal of the heightened risk environment is a significant logistical shift. Partners Group has decided to move its annual global investor conference from Abu Dhabi to Zurich. The client annual general meeting will now be held near Zurich on April 13 and 14.

This relocation is a direct response to regional conflict. Following coordinated Israeli-American airstrikes on Iran, Tehran launched nearly 1,200 projectiles—including missiles, drones, and cruise missiles—at the United Arab Emirates in late February 2026. In the aftermath, regional offices of major financial institutions like Goldman Sachs, Citi, and Standard Chartered have instructed staff to work remotely. Partners Group is not alone in adjusting its plans; a growing number of commercial and sporting events in the region have been postponed or canceled.

Should investors sell immediately? Or is it worth buying Partners Group?

Cautious Guidance for 2026 and Share Price Pressure

Looking ahead to 2026, Partners Group anticipates gross fundraising to reach between USD 26 and 32 billion. However, management expects performance fees—which typically contribute 25% to 40% of long-term revenue—to land at the lower end of their target range. This is due to certain fees being recognized earlier, in 2025.

The primary source of selling pressure on the stock stems from a sector-wide issue. Several publicly listed private market managers are facing investor scrutiny as the market reassesses their private credit portfolios, especially exposures to SaaS companies potentially vulnerable to disruption from artificial intelligence.

Partners Group emphasizes that it has consciously limited its software sector exposure to less than half of the industry average. Its global infrastructure portfolio, valued at USD 36 billion, maintains a strategic focus on Northern Europe. Despite these mitigating factors, the share price currently trades approximately 30% below its 52-week high of €1,278, marking its lowest level in a year.

Dividend Increase and Long-Term Ambition

At the Annual General Meeting on May 20, shareholders will vote on a proposed dividend of CHF 46 per share, representing a 10% increase from the previous year. Management has recently reaffirmed its long-term goal of expanding assets under management to USD 450 billion by 2033.