Partners Group has launched its cross-sector royalties strategy in an evergreen fund vehicle for private investors in Asia, Europe and the Middle East.
The fund, now available to eligible individual investors, will invest alongside an existing institutional royalties evergreen fund, which was launched in January 2025.
Both evergreen funds will have access to the same royalties transactions, the firm said.
Stephen Otter, head of royalties, Partners Group, told FSA: “Since establishing our cross-sector royalties strategy, we have been working towards ensuring that investors across all client segments have equal access to the strategy.”
“We are strong believers in royalties as a portfolio diversifier and stabiliser given its low correlation to traditional asset classes and broader markets, which is particularly beneficial during volatile periods.”
“We expect the asset class will play a growing role in private markets portfolios in the coming years. We see a huge market opportunity.”
The new vehicle has a minimum investment of USD 10,000, and will target a 10% net return and a cash yield of 4-6% per annum.
The strategy invests in sectors such as intellectual property assets across the pharmaceuticals and entertainment industries, as well as emerging high-growth sectors like the energy transition, sports, and brands.
Earlier this year it made an investment into Warner Bros. Discovery’s catalogue of film and television music rights, which the firm said was one of the largest music rights transactions in history.
Christian Wicklein, co-head private wealth, Partners Group, said: “Investors in our private wealth evergreen fund will have immediate exposure to the same global royalties portfolio, designed to deliver consistent returns through market cycles, as our institutional clients.”
“Partners Group’s royalties portfolio has low correlation with other asset classes, providing diversification benefits, and offers an inflation hedge.”
Otter said: “Our pioneering royalties strategy follows a relative value approach where we shift between sectors and structures depending on what offers the best opportunities at a given point in time.”
The company also said it has a strong near-term pipeline that is anticipated to facilitate deployment of up to $750 million this year.
Partners Group currently manages currently manages $48 billion in assets across its evergreen product suite globally.
