Partners Group is pursuing new growth opportunities through an infrastructure agreement in Abu Dhabi and tokenized access to a $549 million royalties fund, while fee reductions and changes within its private equity business add pressure to its expansion strategy.
The Swiss alternative asset manager has signed a non-binding memorandum of understanding with the Abu Dhabi Projects and Infrastructure Centre to explore private-sector participation in infrastructure and real estate projects. Separately, Soneium and Asseto have announced plans to provide eligible users access to a Partners Group-managed royalties fund through ipUSD and IP Vault.
The initiatives broaden Partners Group’s potential investment and distribution channels, but neither announcement establishes a new capital commitment or guarantees additional investment inflows.
Abu Dhabi Agreement Opens Infrastructure Opportunities
The memorandum of understanding provides a framework for exploring private investment opportunities across Abu Dhabi’s infrastructure and real estate sectors. Areas under consideration include construction, industry and technology, according to reports.
The agreement could help Partners Group identify projects where private capital can support development across the emirate. However, the non-binding nature of the arrangement means the parties have not necessarily committed to financing specific projects or completing transactions.
Progress will depend on whether the discussions produce defined investment opportunities, formal mandates and completed deals. Until then, the agreement represents a potential source of future business rather than secured revenue or investment deployment.
Tokenized Access Targets a $549 Million Royalties Fund
The separate initiative involving Soneium and Asseto is intended to provide eligible users with tokenized access to a royalties fund managed by Partners Group. The distribution mechanism involves ipUSD and IP Vault, connecting an existing private-market investment vehicle with blockchain-based financial infrastructure.
The fund’s reported valuation of $549 million reflects its existing portfolio rather than fresh capital raised through the new arrangement. The amount of additional investment the initiative could generate remains unclear.
Tokenization can represent investment interests through digital tokens, potentially broadening distribution options and improving aspects of transaction processing and ownership administration. However, access remains subject to eligibility requirements, product structures and applicable regulations.
The initiative’s commercial significance will depend on whether eligible investors use the new channel and how much additional capital it attracts. An announced distribution arrangement alone does not establish investor demand or confirm the scale of a future fundraising effort.
Private Credit Fundraising Provides Evidence of Demand
Partners Group has also demonstrated fundraising capacity through a separate private credit initiative. Its second rated feeder vehicle for an evergreen private credit strategy attracted $510 million from U.S. insurance companies, bringing total capital raised through such vehicles to $875 million.
The fundraising provides evidence of demand among institutional investors for that particular investment structure. However, it should be assessed independently from the tokenized royalties offering and the Abu Dhabi infrastructure discussions, as each initiative involves different investors, strategies and commercial objectives.
Together, the developments highlight Partners Group’s challenge of attracting new capital while identifying investments capable of generating attractive returns.
Velvet Care Expansion Highlights Portfolio Growth
Existing portfolio companies provide another measure of the firm’s ability to create value. On October 21, Partners Group reported that Velvet Care, a consumer products manufacturer acquired in 2024, had increased revenue by more than 30% and earnings before interest, taxes, depreciation and amortization by more than 50% since the acquisition.
Velvet Care is constructing a new manufacturing plant in Poland that is expected to increase total production capacity by approximately one-third once fully operational. The company is targeting a doubling of revenue by the end of 2028, supported partly by the development of a sales platform for Germany.
These operating improvements offer tangible evidence of portfolio development, although future targets remain dependent on execution, market demand and the successful expansion of production and distribution.
Fee Reductions Could Weigh on Returns
The growth initiatives come alongside reported fee concessions affecting Partners Group’s Global Value SICAV, which has a distributing subfund with approximately 6.6 billion euros in assets.
According to reports, administrative fees for investors in the distributing subfund will decline by at least 25 basis points for three years. The accumulating subfund will receive reductions of up to 75 basis points, with the reported arrangements extending until January 1, 2030.
Lower fees may improve the product’s competitiveness and appeal to investors. However, they can also reduce revenue generated from the affected assets, depending on the applicable terms and the number of investors benefiting from the reductions.
Partners Group’s longer-term growth prospects will depend on converting its infrastructure discussions and tokenized distribution plans into measurable business while maintaining portfolio performance and managing fee pressure.
