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August 31, 2026 - 10:14
5 minutes
(Bloomberg) — Partners Group Holding AG is running short of time to refinance around €6 billion ($7 billion) in debt at three of its portfolio companies, adding to investor scrutiny on one of Europe’s largest private markets firms.The Zug, Switzerland-based alternative manager needs to push out maturities at Emeria SASU, Ammega Group BV and Breitling AG, all of which have billions of euros of debt coming due in 2028 — a tight deadline for corporate finance. All three have seen their loans trade at prices well below face value and at levels indicating credit stress, while having their credit ratings downgraded to the lowest junk level.The upshot is that Partners Group might have to find cash for multiple refinancings at the same time, another headache for the firm which finds itself in one of its most turbulent periods since its founding three decades ago. A wave of client withdrawals, a short-seller attack and a slump in the firm’s share price have increased pressure on management in recent months.The sponsor recently cut the valuations of both Ammega and Emeria, citing weaker trading conditions and operating performances. Partners Group founder Alfred Gantner currently serves as the chairman of Breitling, which is facing weaker demand for luxury watches.“These three businesses are not in a stressed situation,” Ben McLean, managing director for private equity at Partners Group in Zug said in a statement. “We are confident in the numbers.”Investors who hold the debt of the three firms are increasingly frustrated about Partners’ handling of the situation as communication about their plans has been poor, people familiar with the matter said. The investors are seeking to understand whether Partners Group has the appetite and capacity to support all three companies simultaneously, and if not, which they will prioritize, the people said, who asked not to be named discussing private details.A spokesperson for Partners Group, which has more than $185 billion in assets under management across private equity, private credit, infrastructure and real estate, declined to comment more broadly on the refinancing of the debt or their communication with investors. Spokespeople for Emeria, Ammega and Breitling didn’t immediately respond to requests for comment.Partners Group is due to report earnings on Sept. 1.Wider ImpactThe situation also has the potential to weigh on some parts of Europe’s leveraged finance market. The debt of the three companies is widely held by managers of collateralized loan obligations, which bundle up slices of loans from the likes of Emeria and sell them as bonds. CLOs are the biggest buyers of leveraged loans, and have limits on the amount of CCC debt that they are typically allowed to hold. While CLOs are never forced sellers, some may opt to sell the debt at deep discounts.Of the three firms which need refinancing, creditors said they are most worried about Emeria, the French property management business, which is currently struggling with a debt pile of around €3.5 billion ($4.1 billion) accumulated in a period focused on funding expansion.Investors said the company now needs to de-lever ahead of its 2028 maturities. Partners Group has been weighing a plan to provide a cash injection of €200 million, as reported by Bloomberg. Some debt-holders who spoke on condition of anonymity said that’s not enough, while two said a cash injection to the tune of €500 million to €600 million would be more of what’s required in order for the company to cut its debt to a sustainable level. Creditors have already organized with advisors ahead of debt talks.High LeverageEmeria’s approximately €3.5 billion in debt starts coming due from 2027 onward, with the around €2 billion term loan B due in 2028. Fitch analysts in June cited “heightened refinancing risk” and high leverage of more than 11 times earnings as of the end of 2025.Corporates would typically refinance large debts 12 months or more ahead of maturity to avoid them negatively impacting credit ratings and broader debt metricsConveyor belt-maker Ammega is also struggling with similar levels of leverage, which Fitch analysts said in July could affect its refinancing outlook. Partners had been evaluating exit strategies for the company in 2024 but so far nothing has come to fruition.“The early signs of Ammega’s operational and financial health are good this year,” McLean at Partners Group said. “It’s showing top-line growth in the mid-single digits.”Meanwhile, Swiss watchmaker Breitling AG, is held by Partners Group with CVC Capital Partners Plc. The company recently laid off dozens of employees as it grapples with softening luxury demand and higher costs.“These businesses are real world businesses,” McLean said. “These businesses tend to have resilient margins and strong long-term growth potential.”©2026 Bloomberg L.P.
