Investor exodus hits Partners Group as asset valuation fears mount

The Zug-based firm, founded by former Goldman Sachs bankers Marcel Erni, Alfred Gantner, and Urs Wietlisbach, has long been a pillar of the Swiss financial sector. However, growing investor skepticism reached a breaking point this week. The crisis follows a report by short seller Grizzly Research in April, which alleged that the firm overvalued certain underperforming assets—a claim the company has vigorously denied.

While CEO David Layton acknowledged the reputational damage caused by the report, the broader market impact has been swift. Analysts at Vontobel suggest the firm’s long-term growth narrative is now under strain, with Partners Group itself warning of slower asset growth in the coming two years. Despite public assurances from partners like UBS, the firm faces a difficult period as macro-economic pressures, from rising interest rates to geopolitical volatility, continue to weigh on its $185 billion portfolio. For the billionaire founders, the current turmoil marks the most significant challenge to their legacy since the company’s 2006 public listing.