President Steffen Meister is concerned that clients’ appetite for private placements will decline.
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The Zugois asset manager Partners Group is unable to invest as much money as usual due to the current market variations linked to the coronavirus crisis. Most of the new investments the teams are working on are being temporarily delayed, in part also because the prices envisaged diverge from those of interested sellers, chairman of the board Steffen Meister said in an interview with Finanz und Wirtschaft to be released on Wednesday.
It is possible that transactions will resume in greater numbers in the second half only or in 2021. Currently, the company is concentrating its forces on keeping “controlled” companies under control for its customers. Basically, these companies are doing well and they are supported with liquidity.
President Meister is concerned that clients’ appetite for private placements will decline. He expects this sector to develop from a standard investment niche product to institutional investors. He was answering the question of whether the predictable global recession and the sharp correction in the stock markets would dampen customer appetite.
Speaking of returns, including in the current situation, holdings in unlisted companies are expected to continue to make 3-5 percentage points better over the long term than portfolios of listed stocks. The value of companies in the group’s client portfolios is also correcting with the current economic situation, but overall, the erosion is less violent than the prices of comparable listed companies, noted President Meister.
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