Partners Group Private Equity (PEY) Q3 2025 earnings summary

Executive summary

• Q3 2025 NAV total return was 2.1%, with share price up 6% and YTD NAV slightly negative due to FX headwinds, mainly from a weaker US dollar.

• Portfolio value creation was 2.6% in Q3, with resilience across diversified holdings in healthcare, industrials, consumer discretionary, and technology sectors globally.

• Four top 10 portfolio companies (PCI, ISP, Techem, Clario) have agreed sales, expected to drive significant distributions in the next 3–9 months.

• Full-year dividend yield exceeds 7%, with a second interim dividend of EUR 0.375 per share payable in December and over EUR 50 million returned to shareholders.

• Portfolio activity included EUR 41.6m invested YTD and EUR 65.4m distributed YTD, with liquidity strengthened by a revolving credit facility.

Financial highlights

• EUR 42 million invested year-to-date, EUR 65 million received in distributions by end of September, and nearly EUR 26 million paid as first interim dividend.

• Q3 investments totaled over EUR 21 million across six new opportunities, surpassing the first half's total investment.

• Trailing 12-month distribution rate as a percentage of NAV rose to ~10% by quarter-end, expected to double in coming months.

• Top 20 portfolio companies showed 10% LTM EBITDA growth, 18x EV/EBITDA, and 6x Net Debt/EBITDA.

• Average annual NAV and share price total returns exceeded 9% over the past decade.

Outlook and guidance

• Distribution guidance for 2025 and 2026 is approximately EUR 200 million annually, targeting a 20% NAV run rate.

• Realization momentum is expected to increase, with NAV received in proceeds anticipated to rise to 18-20% in the next 3-6 months.

• Clear visibility on short-term distribution drivers, with anticipated distributions from announced transactions over the next 6-9 months.

• Annual new investments are expected to normalize at 10–15% of NAV.

• Long-term target remains double-digit net returns, with private equity direct investments delivering 15% net over the last decade.