Partners Group is one of the largest firms in the global private markets industry. Since 1996, it has invested USD 244 billion in private equity, private credit, infrastructure, real estate, and royalties on behalf of its clients globally. Today, the firm has over 2,000 professionals and over USD 174 billion in assets under management globally.
Partners Group is among the most consistently top performing firms in private markets and seeks to deliver sustainable performance across economic cycles by focusing on three key pillars: 1) transformational investing to generate attractive returns by capitalizing on thematic growth trends; 2) bespoke client solutions; and 3) stakeholder impact that aims to realize potential in private markets through responsible investing that creates sustainable returns with a lasting, positive impact for all stakeholders.
Partners Group has over 200 real estate experts with expertise spanning the full investment lifecycle. Moreover, the real estate team’s on-the-ground presence across 20 offices in the Americas, Europe, and Asia and deep networks in the markets where it invests enables them to unlock value for investors through proprietary granular insights into occupier and local market dynamics. Partners Group’s Private Real Estate gross asset value totals USD 59 billion across direct, secondary, and primary investments globally.
Sector Forecasts
Industrial:
The industrial sector continues to be supported by long-term trends. In the US, despite temporary market adjustments and a modest capital value dip expected in 2025, fundamentals and e-commerce demand is expected to continue to drive growth in 2026. Europe demonstrates additional resilience with five consecutive quarters of capital value growth, below-average vacancy rates, and solid rental performance. In both regions, e-commerce and supply chain evolution is expected to continue to power the sector’s promising outlook and drives Partners Group’s thematic conviction in the sector.
Office:
Office presents a bifurcated landscape with US markets remaining highly selective and defensive amid persistent structural challenges. Europe shows signs of cautious optimism for prime assets in key locations such as London and Madrid. Both regions see a widening performance gap between high-quality, well-located properties and increasingly challenged secondary assets.
Residenial:
Partners Group sees favorable tailwinds underpinning the residential sector albeit with variations across the globe. In the US, multifamily properties are navigating temporary softness from supply surges, but declining future construction and high mortgage rates support rental demand, with apartment values already rising and leading the broader pricing recovery. Meanwhile, Europe demonstrates even stronger fundamentals with increasing capital values, robust rental growth, and extremely low vacancy rates. Persistent supply constraints and affordability challenges are expected to continue to drive exceptional rental demand and above-average returns for the region.
Hospitality:
US hospitality fundamentals is expected to continue to recover on the back of refinancing activity and lender confidence, and income-driven returns should help the sector exceed its long-term average over the next five years. Meanwhile Europe’s hospitality market remains robust, led by Southern Europe and the Nordic regions. Partners Group’s outlook on the sector remains positive as hotels are projected to be one of the best performing sectors in Europe due to strong global travel demand and attractive pricing.
Investment principles & strategy
Partners Group pursues a top-down approach for identifying key giga themes that are shaping the future economy, focusing on those segments of the market most likely to generate attractive investment opportunities. These overarching investment giga themes represent the most powerful secular demand shifts in Productivity (Digitization & Automation), Synergy (Decarbonization & Sustainability), and Culture (New Living).
The Partners Group Real Estate team scrutinizes the implications of these giga themes, identifying the significant sub-trends that emerge in connection with them and pursuing sectors that are well-positioned to benefit from the tailwinds of these giga themes. Partners Group’s focus sectors are Living, Industrial and Hospitality.
Partners Group invests with an owner-mindset through its distinct vertical depth model. A network of vertically integrated Partners Group-owned platforms and strategic operators allows the Real Estate team to take control of the full value chain to achieve better risk-adjusted returns for its clients.
Partners Group’s broader global real estate strategy encapsulates both Directs and Partnerships investing capabilities. Partners Group believes that its investment activity and experience in each of these areas provide a distinct competitive advantage and a differentiated ability to serve as a solutions provider to high quality partners.
• Direct equity investing: Direct investments in select properties, portfolios, and real estate assets. Successful direct equity investing requires a quality industry network, proprietary quality investment flow, and the ability to critically and efficiently evaluate and execute opportunities. Direct equity investing enables Partners Group to create value throughowner-oriented asset management by, for example, implementing strategic capex, driving leasing strategy, enhancing the efficiency of operations, or executing refinancing solutions.
• Partnerships investing: Traditional secondary investments, such as GP- and LP-led transactions, as well as minority co-investment and primary fund commitments. Alongside today’s more nuanced liquidity needs for both GPs and LPs, traditional secondaries have also evolved in scope and size to encapsulate more intricate GP-led opportunities, such as asset-light or corporate investment structure, and bespoke liquidity solutions, such as preferred and structured equity investments. Secondary investments generally offer reduced holding periods, accelerated distributions, and the ability to quickly diversify the segment and vintage year exposure of a portfolio.
Strategic corporate development
Partners Group is committed to a sustainable and long-term business strategy focused on enhancing its expertise in private markets. This includes the ongoing development of its existing business lines and product offerings, aligning these efforts with market opportunities and client demands.
Partners Group recognizes that vertical integration is key for value creation: elevating returns through deeper market access and enhanced operational controls, and mitigating risks through strengthened alignment in sourcing,execution and asset management. In January 2025, Partners Group acquired Empira Group, a vertically integrated real estate investment manager founded in 2014 and headquartered in Switzerland. Empira Group’s investment strategies include European residential; US residential; transition-to-green, which involves creating value through sustainability initiatives; and real estate credit
Through diverse real estate investment approaches – direct real estate, secondary market strategies, and bespoke mandates – Partners Group effectively meets the varied needs of its clients while optimizing returns in the often-complex real estate market. Partners Group’s blend of market expertise, active management focus, and customized solutions enhances its ability to identify and capitalize on unique investment opportunities across the global real estate landscape. Given the breadth of its real estate platform across direct and secondary investments, Partners Group takes an integrated approach to executing an investment strategy whereby it can leverage the insights garnered across its platform to evaluate investment opportunities. The close alignment of its real estate teams, combined with Partners Group’s ability to form significant partnerships across the platform, are a competitive advantage in winning non-traditional investments; operators typically prefer to work with investors with whom they have, or can develop, a long-term investment relationship.
Partners Group’s global, integrated investment management is implemented on an ongoing basis for each of the firm’s private markets limited partnerships, open-ended structures, and all other programs and client mandates.
Performance verification
Partners Group has a Valuations Committee. This is a specialized body to oversee and review the performance of Partners Group’s equity in real estate. Quarterly, the Committee discusses each investment based on a performance report. Upon submission, review and sign of the report, the new valuation is implemented.
COMPLIANCE STATEMENT
Partners Group’s compliance platform is designed to ensure adherence to regulatory standards and best practices in private markets and investment management. It integrates advanced technology solutions to streamline compliance processes, including monitoring, reporting, and risk management. The platform emphasizes transparency and accountability, facilitating effective communication among stakeholders. With a focus on continuous improvement, it offers training and resources to empower employees in compliance matters. By leveraging data analytics and automation, Partners Group enhances operational efficiency and mitigates regulatory risks. Overall, the compliance platform underpins the firm’s commitment to uphold ethical standards and maintain the trust of clients and investors in a dynamic regulatory landscape.
IMPORTANT INFORMATION
Any security offering is subject to certain investor eligibility criteria as detailed in the applicable offering documents. The information contained herein is confidential and may not be reproduced or circulated in whole or in part. The information is in summary form for convenience of presentation, it is not complete and it should not be relied upon as such.
Any interests referenced herein have not been and will not be approved or disapproved by the U.S. Securities and Exchange Commission or by the securities regulatory authority of any U.S. state or any other relevant jurisdiction, and no other authority or commission has passed upon the accuracy or adequacy of this presentation. Any representation to the contrary is a criminal offense.
All information, including performance information, has been prepared in good faith; however, Partners Group makes no representation or warranty express or implied, as to the accuracy or completeness of the information, and nothing herein shall be relied upon as a promise or representation as to past or future performance. This material may include information that is based, in part or in full, on hypothetical assumptions, models and/or other analysis of Partners Group (which may not necessarily be described herein), no representation or warranty is made as to the reasonableness of any such assumptions, models or analysis. Any charts which represent the composition of a portfolio of private markets investments serve as guidance only and are not intended to be an assurance of the actual allocation of private markets investments. The information set forth herein was gathered from various sources which Partners Group believes, but does not guarantee, to be reliable. Unless stated otherwise, any opinions expressed herein are current as of the date hereof and are subject to change at any time. All sources which have not been otherwise credited have derived from Partners Group.
No representation is being made that any account or fund will or is likely to achieve profits or losses similar to the results being portrayed herein. The gross annual rate of returns represents the compound annual rate of return (“IRR”) before management fees, organizational expenses and the general partner’s allocation of profit, but in some instances (where indicated), net of the underlying general partner’s fees and expenses. The net annual rate of return represents the IRR after management fees, organizational expenses and the general partner’s allocation of profit. Actual realized returns on unrealized investments will depend on, among other factors, future operating results, the value of the assets, market conditions at the time of disposition, any related transaction costs, and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the valuations used in the performance data contained herein are based. Accordingly, the actual realized returns on these unrealized investments may differ materially from the returns indicated herein. Nothing contained herein should be deemed to be a prediction or projection of future performance of any investment.
Certain information contained in this presentation constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of any investment may differ materially from those reflected or contemplated in such forward-looking statements.
Material notes to investors based in the United States of America Any interests referenced herein may not be sold, transferred or resold (i) except as permitted under the constituent documents of that fund and (ii) in accordance with applicable securities laws, including the US Securities Act of 1933, as amended, and the US Investment Company Act of 1940, as amended. This presentation may relate to products managed by any of the following: (i) Partners Group AG, which is not registered with the SEC as an investment adviser pursuant to the US Investment Advisers Act of 1940, as amended (the “Advisers Act”); (ii) Partners Group (USA), Inc., which is registered as an investment adviser pursuant to the Advisers Act or (iii) another Partners Group advisory affiliate. Please contact us for more information regarding how specific assets may be managed within the Partners Group enterprise. The information provided herein by Partners Group and its affiliates (the “Provider”) is not intended to be, and should not be regarded as, “investment advice” or a “recommendation” within the meaning of 29 C.F.R. § 2510.3-21. All of the information provided herein is intended to be responsive to requests made by the requesting party (the “Client”) in order to facilitate the Client’s independent decision making process regarding whether to engage the Provider for the services described herein. The Client is advised to consult with its legal, tax and other independent advisers that are unrelated to the Provider before making a decision regarding whether to engage the Provider. The information provided herein is solely in response to the informational requests made by the Client herein and is not intended to constitute advice with respect to whether the Provider should be engaged to provide the services requested by the Client. The information provided herein is intended to be used solely by the Client in considering the services described herein and may not be used for any other reason, personal or otherwise. The Provider did not participate, offer input, and was not involved in any way in the preparation of the requests herein, and the Provider has not expressed any opinion on whether the requests are appropriate or sufficient for the Client to make its determination regarding whether to engage the Provider. Notwithstanding this intention, any and all information provided herein that is determined to constitute “investment advice,” or a “recommendation,” within the meaning of 29 C.F.R. § 2510.3-21 is provided solely on the basis that the Client is, or is represented by, an independent fiduciary that satisfies the criteria set forth in 29 C.F.R. § 2510.3-21(c)(1).
