Q2 2026 Partners Group Private Equity Ltd Earnings Call Transcript
Key Points
- Strong liquidity generation with approximately EUR111 million in distributions, equivalent to around 14% of net assets, despite a challenging market environment.
- Successful realizations, including the full sale of Clario to Thermo Fisher Scientific and full sell-down of Galderma, with last 12-month exits achieving a money multiple close to 3x invested capital.
- Younger vintages (2024-2025 investments) are performing well, with blended IRR around 20% and companies like Rosen and Velvet Care already close to 2x return on capital in under 2.5 years.
- Meaningful progress in AI initiatives across the portfolio, with an adoption rate of about 90% and $170 million of visible EBITDA opportunities for 2027, exemplified by Foundation Risk Partners' $10 million EBITDA impact.
- Robust pipeline of new investment opportunities, including the acquisition of Aromazone and a UK electricity grid service provider, supported by a strong balance sheet with EUR51 million cash and a fully undrawn EUR150 million credit facility.
- Commitment to shareholder returns with almost EUR36 million returned through dividends and share buybacks in H1 2026, plus a prospective dividend yield above 8%.
- NAV declined by 8.6% on a total return basis in H1 2026, primarily driven by portfolio developments and a limited number of underperforming assets.
- Four assets (USIC, Emeria, Pharmathen, and Amega) accounted for approximately two-thirds of the last 12-month portfolio decline, with Pharmathen written down to zero following FDA import alert and operational challenges.
- Last 12-month EBITDA growth for TOP20 companies slowed to mid-single-digit (4.5%), significantly below the historical 13-15% growth rates, reflecting a challenging macro environment.
- Mature vintages (pre-2021) experienced negative contributions due to share price volatility in listed holdings like Vishal and Ankinder Care, impacting overall performance.
- Investment activity was softer in H1 2026 due to macro volatility, with only EUR13 million deployed into new investments, limiting near-term growth potential.
- Debt trading concerns for Emeria and Amega, with maturities in 2028, requiring proactive work with lenders to find sustainable solutions.
Good morning, and thank you for joining us today. I'm Andrea Matescu, Investor Relations, responsible for PGPE Limited, and I'm delighted to be here with my colleagues, Christopher Maz, Managing Director and co-head Portfolio Solutions and Federica Catanica, Senior Portfolio Manager, responsible for PGPE Limited.
Today, we'll be sharing an update on the portfolio and performance during the first half of 2026.
But before we get started, just a quick note on housekeeping.
If you have any questions during the webcast, please use the Q&A tool available on your screen.
We will address questions at the end of the presentation. And to ensure we cover as much as possible, we'll group similar questions and respond to them in one go.
And if we run out of time or you have additional questions afterward, please feel free to reach out to us via e-mail or through the contact form on our website.
Let me begin with a high-level overview of our first half 2026 results before Federica and
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