Partners Group has warned that its flagship private equity fund is facing a wave of withdrawal requests from wealthy investors, raising fears of further caps on redemptions.
The Swiss firm, which manages $185bn in assets, said redemption requests at its $16bn private equity master fund reached roughly six per cent of net asset value, breaching the five per cent threshold that allows it to restrict withdrawals.
The warning comes just a day after Partners Group moved to limit redemptions from its $8.6bn flagship European private equity fund, a decision that rattled markets and investors alike.
That earlier decision sent the group’s share price plummeting 16 per cent during Wednesday trading, with the stock now down 31.5 per cent since January.
Partners Group said the “volatility” that has harmed private credit funds had “spilled over to private equity”, signalling that the turmoil is spreading across asset classes.
The firm added: “The firm is prepared to enact the respective liquidity limitation mechanism across other funds.”
The pressure on Partners Group suggests the crisis that has plagued private credit funds over the past year is now creeping firmly into private equity territory.
Private credit funds were forced to restrict withdrawals after investors grew spooked by writedowns at some of the largest funds, alongside fears that AI could damage technology and software firms that make up a significant portion of loan portfolios.
Earlier this year, BlackRock limited withdrawals from its flagship $26bn debt fund, while Blue Owl, JP Morgan and Clearwater also found themselves rocked by the wider crisis.
Like private credit, private equity funds have increasingly courted wealthy retail investors to drive growth, often with the promise of regular and accessible withdrawal options.
That strategy has now exposed the sector to the same redemption pressures that destabilised private credit, with investor confidence proving fragile amid continued market uncertainty.
Despite the turbulence, Partners Group said it expects strong fundraising this year and forecasts that inflows across its private wealth platform will exceed outflows in the first half of 2026.
However, the firm cautioned that elevated redemption activity could weigh on overall assets under management growth in the second half of the year and into 2027.