Partners Group Private Equity (PEY) H1 2025 earnings summary

Executive summary

• H1 2025 was marked by a 5.7% NAV total return decline, mainly due to USD depreciation and market volatility, but portfolio value creation improved in Q2 and €39.6m was distributed.

• Major exits (PCI Pharma Services, Techem) at valuations in line with appraisals are expected to boost liquidity and validate the valuation approach.

• The portfolio is well-diversified by region, sector, and vintage, with over 70 direct private equity holdings and a shift to 99% direct investments.

• Dividend yield reached 7.5%, with €26m interim dividend paid and a policy targeting 5% of prior year NAV in semiannual payments.

• Cash and equivalents stood at €8.3m, with a €120m undrawn credit facility supporting liquidity.

Financial highlights

• NAV per share at €13.79 and share price at €9.72 as of 30 June 2025, with a 29.5% discount to NAV.

• Total dividend per share paid (LTM): €0.73; LTM dividend yield: 7.5%.

• 10-year NAV total return: 9.2% p.a.; 10-year share price total return: 8.3% p.a.

• Distributions received totaled $39.6m, with $31.4m from listed portfolio sell-downs and €7.5m from the Toolz exit.

• H1 2025 net loss: €59.6m vs. €39.8m profit in H1 2024; basic EPS: -€0.86 vs. €0.57.

Outlook and guidance

• Increased transaction activity and improved liquidity are expected in H2 2025 as trade policy clarity emerges.

• Fed expected to cut rates twice by 25bps each in H2 2025; U.S. and Europe to benefit from fiscal and monetary policy shifts in 2026.

• Realizations expected to revert to normalized levels (mid to high teens % of NAV) over the next 12 months.

• Focus remains on delivering strong NAV performance and narrowing the share price to NAV discount.

• Sector and regional diversification strategies remain key amid ongoing macroeconomic volatility.