Partners Group launches evergreen version of royalties strategy
Private markets firm Partners Group has launched an evergreen fund to provide advisers and investors with access to its cross-sector royalties strategy.
With a minimum investment of $20,000, the private wealth fund targets a 10 per cent net return and a cash yield of 4–6 per cent per annum.
It invests in royalties across key sectors, including pharmaceuticals, music, broader media & entertainment, and energy transition, and the firm said it has made 15 investments in the last 12 months.
Evergreen funds allow investors to make long-term investments in private companies without a fixed end date, so they are viewed as a more user-friendly structure that can provide greater liquidity. They have been welcomed by financial advisers, as they allow investments of smaller ticket sizes rather than the large sums contributed by institutional players.
This private wealth version will sit alongside Partners Group’s institutional royalties fund, which was launched earlier this year, while its full suite of evergreen funds manages US$52 billion in assets globally.
Overall, Partners Group has US$152 billion ($228 billion) in assets under management across private equity, infrastructure, real estate, royalties, and credit.
Stephen Otter, head of royalties, said: “Our pioneering cross sector royalties strategy follows a relative value approach where we shift between sectors and structures depending on what offers the best opportunities at a given point in time.”
Jonathan Abraham, head of private wealth Australia, said: “Investors in our private wealth evergreen fund will have immediate exposure to the same global royalties portfolio, designed to deliver consistent returns through market cycles, as our institutional clients.
“Partners Group’s royalties portfolio has low correlation with other asset classes, providing diversification benefits, and offers an inflation hedge.”
Earlier this year, Partners Group teamed up with asset and wealth manager Perpetual to evaluate opportunities, such as listed investment trusts, co-investments, and innovative fund structures.
“Combining Perpetual’s expertise, knowledge and connections as an Australian equities investor, together with Partners Group’s significant local and global reach in private markets including private equity, infrastructure, real estate, royalties and credit, provides the opportunity to explore products that give investors access to asset classes across both public and private markets within a single product, which is a strategic relationship among the first of its kind in the Australian investment industry,” said Perpetual CEO Bernard Reilly.
The Perpetual deal followed one in September 2024, with BlackRock to launch a new multi-asset class model portfolio solution, which would streamline retail wealth access to private markets. Retail wealth investors will choose from three risk profiles to determine allocations to BlackRock and Partners Group funds, including BlackRock’s private equity, private credit, and systematic funds and Partners Group’s private equity, growth equity, and infrastructure funds.
AUTHOR
Laura Dew
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