Sparks - Patria Private Equity Trust

Partners Group Private Equity announced the results of its EGM held on 7 October, at which 99.89% of votes cast supported the Managed Wind-Down Resolution, approving the orderly realisation of PEY’s entire portfolio, the associated investment objective and policy, and the required changes to its articles of incorporation. This followed valid elections for Realisation Shares representing 74.12% of eligible shares, well above the 40% threshold at which the proposed dual share class structure would not proceed. PEY will therefore realise its portfolio in an orderly manner, broadly in line with the ordinary-course business plans for its investments, with the overall process currently expected to take approximately eight years. From 31 March 2027, PEY expects to return available realisation proceeds to shareholders on a semi-annual basis, although more frequent returns may be made where circumstances permit. The delay to the first return is intended to give investors sufficient time to assess the tax implications and, if they prefer, sell their shares in the market beforehand. Partners Group’s annual base management fee will be reduced from 1.50% to 1.25%, while the existing incentive-fee arrangement remains unchanged. The board intends to retain the existing dividend policy in all material respects, subject to sufficient liquidity and cash flows during the wind-down, while the dividend reinvestment plan will be terminated.

In a separate announcement, PEY reported that no free cash flow was available for additional buybacks under its capital allocation policy as at 30 September 2026. Q326 portfolio distributions and investments amounted to €4.8m and €9.2m, respectively. Nevertheless, the board approved an additional discretionary €10m allocation for share repurchases, on top of c €4.8m remaining from previous allocations, with the combined amount expected to be deployed by 31 January 2027. Following the implementation of the managed wind-down at the conclusion of the 7 October EGM, the previous capital allocation policy no longer applies, and the board considers it appropriate to make capital available for additional buybacks where appropriate to provide liquidity during the transition to the realisation strategy. At end-September, PEY held c €29m of cash and equivalents and its €150m credit facility remained fully undrawn.