Partners Group Faces Dual Headwinds: Short Seller Attack and Subdued Share Price

The clock is ticking for Partners Group shareholders. The Swiss asset manager closed its register on May 8 at 5:00 PM CET, meaning investors who want to vote at the annual general meeting on May 20 must have already registered. On the agenda is a proposed cash dividend of CHF 46.00 per share, with the ex-dividend date set for May 22 and the register remaining locked until May 21.

The run-up to this shareholder milestone has been anything but quiet. Early May saw US short seller Grizzly Reports unleash a blistering attack on the firm, accusing it of opaque valuation practices and over-reliance on evergreen funds. Partners Group swiftly hit back, branding the report defamatory and signaling it is exploring legal action for market manipulation. The company provided specific rebuttals: Grizzly claimed evergreen funds account for nearly half of total revenues, but Partners Group says the real figure is 34%. Similarly, the short seller overstated exposure to the software sector at 9.9%, according to the firm, which insists independent auditors regularly vet valuations against international standards.

Operationally, the management team is treading carefully. New investments in the first quarter totaled just $2.8 billion, a deliberately conservative stance amid choppy markets. Meanwhile, $5.7 billion flowed back to clients, largely from realized private equity and infrastructure exits. The full-year fundraising target remains ambitious, however, with gross new money demand expected between $26 billion and $32 billion.

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

A bright spot in the portfolio is the announced sale of Nordic data center platform atNorth to CPP Investments and Equinix. The enterprise value stands at $4 billion. Contracted EBITDA multiplied 14 times over four years, generating an annual capital return of more than 30% and a 2.5x capital multiple for Partners Group clients. The firm has committed to buying back and reinvesting up to 10% of the stake. The infrastructure division, which manages $36 billion globally, is now seeing rising transaction volumes in both the US and Europe.

On the financial reporting front, Partners Group has adopted IFRS 18, which merges performance fees and investment income into a single line item called performance income. This category is expected to account for up to 40% of total revenue over the medium term, though it complicates year-over-year comparisons.

The market remains skeptical. Shares trade at €958.40, roughly 19% below their level a year ago and down about 12% year-to-date. The stock has recovered just over 10% from its 52-week low of €870.80. It also sits well below its 200-day moving average, reflecting persistent uncertainty.

Despite the near-term pressure, management is holding firm on its long-term vision. The goal is to reach $450 billion in assets under management by 2033. The next major milestone for investors will be the half-year report on September 1, which will offer the first real test of whether the ambitious fundraising target is within reach.

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