Partners Group Expands Investment Horizon with Private Market Royalties

Partners Group, the global private markets investment manager, has announced the addition of private markets royalties as a new asset class to its diversified investment platform. This move marks the inclusion of the fifth asset class after private equity, infrastructure, private credit, and real estate, showcasing the firm's commitment to pioneering innovative investment strategies. The introduction of a dedicated, scalable multi-sector royalty strategy aims to tap into a fast-growing addressable market valued at over USD 1 trillion.

The firm is set to leverage its global presence to invest across a wide range of sectors, including both well-established and emerging royalty sectors such as pharmaceuticals, entertainment, energy transition, sports, and brands. Leading this new venture is Stephen Otter, appointed as Managing Director and head of the private markets royalty business, bringing nearly two decades of investment experience to the table. Otter will spearhead an experienced investment team, working closely with Partners Group's extensive network and sector expertise.

Partners Group anticipates the private markets royalty sector to offer attractive risk-adjusted returns, long-term predictable cash flows, and a hedge against inflation, projecting further rapid growth of this market. The firm plans to make royalty investments accessible to its investors through bespoke solutions including an evergreen fund structure, aiming at a broader range of investment opportunities.