Partners Group restricts hedge fund access to €6bn in portfolio debt

Partners Group is restricting hedge funds and distressed-debt investors from acquiring loans issued by three of its portfolio companies: French property services group Emeria, Dutch manufacturer Ammega, and Swiss watchmaker Breitling. The move targets approximately €6bn in debt maturing in 2028.

By utilizing approved lender lists, also known as “white lists,” the Swiss private equity firm aims to prevent opportunistic investors from building significant positions that could influence restructuring negotiations. These restrictions are intended to protect the firm's ability to manage debt maturities without aggressive creditor-led interventions.

The measures are impacting market liquidity, as the loans for these companies are trading at significant discounts. Emeria’s March 2028 term loan is quoted at 70 cents on the euro, Ammega’s December 2028 loan at 79 cents, and Breitling’s October 2028 debt at 82 cents. The restrictions may complicate exits for existing institutional lenders, such as collateralized loan obligations (CLOs), by limiting secondary-market demand.

In the case of Emeria, which faces a €3.6bn debt burden, Partners Group may be required to inject additional capital to secure refinancing. For Ammega, investors have also faced limitations regarding access to financial information.