Partners Group has launched its new Total Return Strategy, a control private equity strategy focused on lower-leverage, income-generating investments. 

The strategy plans to target companies with steady cash generation and strong competitive standing across sectors it views as essential to the economy. Areas cited include industrial manufacturing, distribution, transportation and logistics, healthcare, consumer products and services, and business services, the company said in a press release.

“As private markets continue to evolve, investors are increasingly seeking strategies that balance income generation with equity upside while managing downside risk. Our Total Return Strategy is the first of its kind in the industry and reflects our ability to adapt to changing market conditions and evolving client preferences. Given the scale and characteristics of the target opportunity set, we see significant potential to grow this strategy over time," David Layton, CEO, Partners Group, said.

The Switzerland-based manager is aiming for total gross performance in the mid-teens and an initial gross dividend yield of about 5% to 8% a year. It described the strategy as leaning on lower borrowing levels rather than a conventional buyout playbook.

TRS will leverage Partners Group’s global investment team and platform, including its sourcing network, thematic research, entrepreneurial governance model, and industry-leading value creation and operating capabilities.

Todd Miller, Partner, Head Total Return Strategy, Partners Group, added: “The Strategy builds on Partners Group's deep sector expertise, but with a distinctly longer-term and lower-risk approach that unlocks access to a new set of high-quality assets not typically targeted in traditional buyouts. We aim to invest in market-leading companies with strong free cash flow and durable competitive positions, including select businesses with moderate cyclicality. Supported by Partners Group’s active ownership approach and a rigorous governance framework, we believe the Strategy can consistently deliver attractive risk-adjusted outcomes across market cycles.”

Partners Group's new strategy sits alongside its existing private markets lineup spanning private equity, private credit, infrastructure, real estate, royalties, and special opportunities. The firm has more than $185 billion in assets under management globally.

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