The Swiss firm Partners Group is facing pressure from clients

Swiss investment firm Partners Group is facing one of the most serious crises in its history after limiting withdrawals from an $8.6bn private equity fund. The move followed rising redemption requests from clients concerned about the value of the fund’s investments.

The Zug-based company then suffered the biggest one-day share fall in its history. Vontobel analyst Andreas Venditti said the market had concluded that Partners Group’s long-term growth potential had been damaged. “Sentiment has been shaken”, he said.

Partners Group is one of the biggest players in private equity and manages about $185bn in assets. The firm was founded in 1996 by former Goldman Sachs bankers Marcel Erni, Alfred Gantner and Urs Wietlisbach, who have since become billionaires.

The company’s problems had been deepening for months. A report by short seller Grizzly Research, which accused Partners Group of overvaluing some investments, added to the pressure behind the withdrawals. The firm has rejected the allegations and vowed to take legal action.

At the same time, the crisis points to broader tensions in the private equity sector. Investors have increasingly sought to pull money from several funds, forcing some managers to cap withdrawals.

The firm has influential friends in Switzerland. UBS, in an unusual move this week, publicly backed it. “We continue to view them as a valued partner”, the Swiss bank said.

(reuters, max)