Swiss private equity conglomerate targets wealthy US advisory clients

Partners Group Holdings, a Swiss private equity firm with a U.S. base in Denver, has launched a Private Wealth unit aimed at financial advisers and their affluent clients.

As a $131 billion asset manager, including $37 billion in the Private Wealth business, Partners Group isn't a newcomer to the financial intermediary market. But by establishing the new unit that gives wealthy investors access to private equity investments, Partners Group is doubling down on its commitment to the space.

“We are committed to making private markets fairer and more accessible,” said Robert Collins, co-head of Private Wealth.

Partners Group is a global company, but half of the $37 billion under management in the Private Wealth unit belongs to U.S. investors, where Collins sees growing opportunity.

Partners Group has been quietly building a footprint in the U.S. market for more than 20 years, including launching the first 40-Act private equity fund in the United States in 2009. The fund, which is limited to wealthy investors able to meet a $50,000 minimum, has grown to $12.5 billion.

“The firm was instrumental in establishing the market, is at the forefront of innovation today, and will continue to seek new solutions to expand access to private markets,” Collins said. “As we grow our business, we will continue to help financial advisers provide their clients with a deeper understanding of private markets and its applications within a diversified portfolio. With the addressable market expected to increase significantly, we are well positioned to remain at the forefront of this industry."

Collins said the expanded focus on the financial advisory space reflects the trend toward growing investment opportunities in the private markets.

“The economy has been shifting from public to private markets,” he said. “The number of public companies has decreased by half in the U.S. and we’re seeing the same trend globally.”

For perspective on the potential market of investment opportunities, Collins said 85% of U.S. companies with at least $100 million worth of revenues are private.

“The economy has been shifting from public to private,” he said. “We will be creating new products and building out our teams, because the demand is enormous, and advisers are looking to get their clients diversification into private markets.”