Partners Group is pursuing fresh avenues for growth through an infrastructure agreement in Abu Dhabi and tokenized access to a $549 million royalties fund, even as fee reductions and shifts within its private equity business add pressure to its expansion strategy.

The Swiss alternative asset manager has signed a non-binding memorandum of understanding with the Abu Dhabi Projects and Infrastructure Centre to explore private-sector participation in infrastructure and real estate projects. In a separate move, Soneium and Asseto have announced plans to give eligible users access to a Partners Group-managed royalties fund through ipUSD and IP Vault.

The initiatives broaden Partners Group's potential investment and distribution channels, though neither announcement establishes a new capital commitment or guarantees additional investment inflows.

Abu Dhabi Agreement Opens Infrastructure Opportunities

The memorandum of understanding sets out a framework for exploring private investment opportunities across Abu Dhabi's infrastructure and real estate sectors. Areas under consideration include construction, industry and technology, according to reports. Private-sector participation frameworks are a common route through which governments seek to attract private capital for infrastructure development, making the agreement an entry point into that process rather than a direct project commitment.

The agreement could help Partners Group identify projects where private capital can support development across the emirate. However, because the arrangement is non-binding, the parties have not necessarily committed to financing specific projects or completing transactions.

Progress will depend on whether the discussions produce defined investment opportunities, formal mandates and completed deals. Until then, the agreement represents a potential source of future business rather than secured revenue or deployed capital.

Tokenized Access Targets a $549 Million Royalties Fund

The separate initiative involving Soneium and Asseto is designed to give eligible users tokenized access to a royalties fund managed by Partners Group. The distribution mechanism relies on ipUSD and IP Vault, linking an existing private-market investment vehicle with blockchain-based financial infrastructure. Tokenized fund distribution has become a growing area of experimentation across the asset management industry as firms test whether on-chain channels can widen their investor base.

The fund's reported valuation of $549 million reflects its existing portfolio rather than fresh capital raised through the new arrangement, and the amount of additional investment the initiative could generate remains unclear.

Tokenization can represent investment interests through digital tokens, potentially broadening distribution options and improving aspects of transaction processing and ownership administration. Access, however, remains subject to eligibility requirements, product structures and applicable regulations.

The initiative's commercial significance will hinge on whether eligible investors use the new channel and how much additional capital it attracts. An announced distribution arrangement alone does not establish investor demand or confirm the scale of any future fundraising.

Private Credit Fundraising Provides Evidence of Demand

Partners Group has also demonstrated fundraising capacity through a separate private credit initiative. Its second rated feeder vehicle for an evergreen private credit strategy attracted $510 million from U.S. insurance companies, bringing total capital raised through such vehicles to $875 million. Evergreen structures differ from closed-end funds in that they remain open to ongoing subscriptions rather than operating on a fixed fund life, a feature relevant to how capital can accumulate in such vehicles.

That fundraising offers evidence of demand among institutional investors for the structure. It should, however, be assessed independently of the tokenized royalties offering and the Abu Dhabi infrastructure discussions, since each initiative involves different investors, strategies and commercial objectives.

Taken together, the developments underline Partners Group's challenge of attracting new capital while identifying investments capable of generating attractive returns.

Velvet Care Expansion Highlights Portfolio Growth

Existing portfolio companies provide another measure of the firm's ability to create value. On October 21, Partners Group reported that Velvet Care, a consumer products manufacturer it acquired in 2024, had increased revenue by more than 30% and earnings before interest, taxes, depreciation and amortization by more than 50% since the acquisition.

Velvet Care is constructing a new manufacturing plant in Poland that is expected to lift total production capacity by roughly one-third once fully operational. The company is targeting a doubling of revenue by the end of 2028, supported in part by the development of a sales platform for Germany.

These operating improvements offer tangible evidence of portfolio development, although future targets remain dependent on execution, market demand and the successful expansion of production and distribution.

Fee Reductions Could Weigh on Returns

The growth initiatives come alongside reported fee concessions affecting Partners Group's Global Value SICAV, which has a distributing subfund holding approximately 6.6 billion euros in assets. According to reports, administrative fees for investors in the distributing subfund will decline by at least 25 basis points for three years, while the accumulating subfund will receive reductions of up to 75 basis points, with the reported arrangements running until January 1, 2030. The end date establishes a defined window during which fee income from the affected subfunds will be constrained.

Lower fees may improve the product's competitiveness and appeal to investors, but they can also reduce revenue generated from the affected assets, depending on the applicable terms and the number of investors benefiting from the reductions.

Partners Group's longer-term growth prospects will depend on converting its infrastructure discussions and tokenized distribution plans into measurable business while sustaining portfolio performance and managing fee pressure.