Partners Group Caps Evergreen Fund Redemptions as Requests Rise - Grizzly Research LLC

Grizzly Research also flags a markup on a Russian asset seized by the Kremlin and a near-9x equity gain on 2.9% revenue growth.

Partners Group's flagship US evergreen private equity fund told the SEC it held 26,838,037 shares of Hong Kong holding Zenith Longitude Limited as of September 30, 2025. The Hong Kong Companies Registry recorded 76,288,162. That roughly 50-million-share gap sits at the centre of a new short-seller report targeting Partners Group Holding AG (PGHN.SW), whose evergreen programs the report estimates contributed 46.7% of the firm's $3.1 billion in total 2025 revenues. Grizzly Research, which holds a short position in PGHN, alleges that a significant portion of the Master Fund's direct equity book carries marks that are unreliable and likely materially overstated, and that the consequences extend to fundraising and the company's long-term financial health.

Ticker: PGHN.SW (Partners Group Holding AG)
Research Firm: Grizzly Research
Report URL: https://grizzlyreports.com/partners-group-caps-evergreen-fund-redemptions-as-requests-rise/?ref=shortreport.fyi
Position Disclosure: Grizzly Research states that associated persons, clients, and investors may hold short positions in covered issuers, including Partners Group Holding AG.

Thesis

Grizzly Research argues that Partners Group's evergreen fund valuations are unreliable and likely materially overstated, with the largest documented discrepancy sitting in the flagship Master Fund's most prominent Asia-Pacific position. Evergreen programs represent nearly half of group revenue, making the alleged mismarks a direct threat to the firm's financial model.

• Zenith Longitude Share-Count Discrepancy: The Master Fund's September 30, 2025 SEC filing reports 26,838,037 shares of Zenith Longitude Limited, while the Hong Kong Companies Registry 2025 annual return records 76,288,162 shares held by the same fund, a gap of roughly 50 million shares on a position valued at $322 million, which represents about 67% of the fund's entire Asia-Pacific direct equity portfolio.
• Russian Asset Marked Up After State Seizure: The Master Fund is alleged to have marked up a Russian pharmaceutical equity investment during the same reporting window in which the Russian state seized the asset by Putin's decree.
• Swedish Datacenter Overmark: The report identifies an alleged 176.9% markup on a Swedish datacenter operator during a period when its revenue fell 18% and operating losses widened 42%.
• Portuguese Biocontrol Near-9x Equity Jump: A Portuguese biocontrol group's common equity was allegedly marked up 857.8% during a period when its revenue grew only 2.9% year over year.
• 26-Day Equity Surge: One undisclosed position's common equity value is alleged to have increased 383% in 26 days.
• Direct-Debt Principal and Fair Value Inconsistencies: Across the Master Fund's direct-debt book, reported principal balances and fair values are alleged to have moved by hundreds of percent and in different directions, which the report says is atypical for a senior loan.
• Valuation Multiples Exceeding Expert Benchmarks: Where the report was able to extract implied valuation multiples, it concluded Partners Group applied multiples far in excess of industry comparisons. Independently commissioned valuation experts are said to have produced estimates sometimes less than half of Partners Group's implied effective valuations.
• Software Exposure Above Stated Level: Partners Group told investors its private-credit software exposure is "less than half the industry average." Grizzly estimates actual exposure in its available sample at 32%, which it says is above the industry average and above peers including Blue Owl Capital.
• Scale of Questionable Marks: Grizzly flags $2.023 billion, or 21.4%, of the Master Fund's $9.45 billion direct equity book as carrying questionable marks. In regions where financial data was available, the report states that close to 40% of valuation marks appear highly questionable. This pattern is said to be absent from comparable US and European peer fund filings.

Catalysts

• Redemption limit trigger, no fixed date: Partners Group has said it will impose limits on investor withdrawals if redemptions rise sharply. The Financial Times reported withdrawal requests reached $750 million in Q3, double the same period the year prior. Any further escalation in redemption requests could force the fund to activate those limits, a visible signal of structural stress.
• Future Master Fund quarterly filings: The next scheduled fund disclosure will either confirm or contradict the share-count and principal-balance patterns Grizzly identifies. A filing that narrows the gap between SEC-reported and Hong Kong-registered Zenith Longitude shares would be a material data point in either direction.
• Hong Kong Companies Registry annual return updates: Future annual returns for Zenith Longitude Limited will show whether the shareholding recorded there converges with, or continues to diverge from, SEC disclosures.
• Regulatory or media scrutiny of valuation practices: The report's allegations of possible accounting irregularities, if picked up by regulators or the Financial Times, could accelerate redemption pressure and constrain Partners Group's ability to raise capital into the evergreen platform.
• Ongoing net redemptions in the flagship US evergreen fund: The Financial Times reported the fund entered net redemptions for the first time last year. If net flows remain negative in future reporting periods, investor and analyst confidence in the evergreen growth story underpinning roughly half of group revenue would be further tested.

Company Response

The source report does not describe any request for comment sent to Partners Group, and Partners Group is not quoted responding to Grizzly's specific allegations. The only company-proximate statement in the report is drawn from Financial Times coverage, in which Partners Group said it would impose limits on investor withdrawals if redemptions rose sharply.

Notable Details

• The Hong Kong Companies Registry filings for Zenith Longitude show a consistent record across multiple years: 149,884,481 shares in 2021, 149,888,161 in 2022, then 76,288,162 following a share-count reduction in 2023, with that figure unchanged through the 2024 and 2025 annual returns. The Master Fund's own September 30, 2025 SEC filing shows 26,838,037 shares, a figure that does not match any year in the registry record.
• A forensic compliance expert quoted in the report warned of "a scandal with this fund and its portfolio companies worse than the one with Wirecard," and alleged from a "surface-level look" the presence of "accounting fraud, investment fraud, and fraud involving loans and offshores." These are allegations. A separate unnamed finance professor, after reviewing the analysis, described the situation as "worse than Wirecard."
• The Master Fund's five-year annualized return through March 31, 2025 was 13.6% for Class I shares versus 16.1% for MSCI World. Its one-year return was 5.8% versus 7.0%. Per the Master Fund's own disclosure, it has underperformed its benchmark across both measurement windows.
• Evergreen program AUM grew from $28.2 billion in 2020 to $56.2 billion in 2025, representing 30% of Partners Group's total AUM. The report estimates these programs contributed approximately 46.7% of total group revenue in 2025 and approximately 45% in 2024, making the platform the single largest revenue contributor.
• Per the 10-K and fund filings, the Master Fund paid $263.0 million in management fees and $156.0 million in incentive fees for the period ended September 30, 2025, totalling $419.0 million. Those fees represented 13.4% of Partners Group's total 2025 revenues of $3,126.7 million.

"There is going to be a scandal with this fund and its portfolio companies worse than the one with Wirecard... From a surface-level look, I can see accounting fraud, investment fraud, and fraud involving loans and offshores."

A forensic compliance expert quoted by Grizzly Research after reviewing the firm's analysis of the Master Fund. These are allegations.

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