Partners Group Private Equity (PEY) is preparing for a major shareholder return program, fueled by substantial capital generated from a series of profitable asset sales, as detailed in a recent analysis by Edison Investment Research. The firm recorded €65.4 million in distributions during the initial nine months of 2025, with expectations for this robust pace to continue. Approximately 22% of PEY's net asset value (NAV) is currently in advanced stages of sale, while an additional 11% is held in publicly traded entities anticipated to be divested over time. This financial influx positions PEY for an estimated €200 million ($233 million) in exit proceeds for both 2025 and 2026, creating the potential for significant share repurchase activities.
The company's strong financial position is further bolstered by the performance of its core investments. PEY's portfolio has demonstrated impressive resilience, with valuations increasing by over 10% on a constant-currency basis in the past year. This growth is primarily attributed to double-digit EBITDA expansion and improved multiples across its key holdings. Recent successful public listings of companies such as Vishal Mega Mart and Galderma have also contributed positively, benefiting from strong market demand and supporting PEY's overall valuation gains. This underlying strength provides a solid foundation for the firm's planned capital return strategy.
The decision to initiate substantial buybacks comes at a time when repurchases are increasingly recognized as an effective method for deploying excess capital, especially when a company's shares are trading below their net asset value. As global markets experience a resurgence in corporate buyback programs, PEY appears ready to capitalize on this trend with a significant program of its own. Edison analysts suggest that a formal announcement regarding these buybacks could materialize in early 2026, contingent on the speed of asset sales and the firm's allocation decisions between reinvestment and shareholder returns. PEY has already begun repurchasing shares, with acquisitions made in October and further purchases in November. Should these buybacks meet the higher end of expectations, shareholders could experience a tangible increase in NAV per share and a potential reduction in any prevailing discount to NAV.
This strategic move underscores PEY's commitment to maximizing shareholder value and highlights the robust health of its private equity portfolio. By returning capital through buybacks, the firm not only signals confidence in its future but also empowers investors by enhancing the intrinsic value of their holdings. Such initiatives foster a positive investment environment and contribute to the overall stability and growth of the market.