In December, the broader equity market decreased sharply and showed an increased volatility. Among others, the market was concerned about the government shutdown in the US as well as the global economy growth outlook. Likewise, Partners Group Listed Investments SICAV – Listed Private Equity suffered among this market trend and especially from the volatility, resulting in a negative performance.
US alternative asset manager contributed in this market environment negatively to the Fund’s performance. Investors are expecting decreasing performance-related fees due to lower valuation multiples in the equity market and probably a less attractive exit environment in the future. However, most of the US alternative asset managers shares performed better than the broad equity market in 2018, still benefitting from high net inflows and a high amount of investable dry powder. Looking at 2018, Business Development Companies (BDCs) and fund-of-funds provided stability in a volatile equity year. BDCs profited from its market positioning with floating debt investments whereas fund-of-funds recorded increasing NAVs. Partners Group considers the valuation multiples after the listed private equity market contraction in Q4 as attractive.
