Key Takeaways
- • Partners Group is restricting hedge funds and distressed-debt investors from buying loans issued by three portfolio companies, Emeria, Ammega and Breitling, as it negotiates refinancing of about €6bn of debt due in 2028, according to Bloomberg.
- • Emeria, a French property services group, is negotiating with creditors over a €3.6bn debt burden, and Partners Group may need to inject additional capital to secure a refinancing.
- • The firm is using approved lender ('white list') provisions to block opportunistic investors from building positions that could influence restructuring talks.
- • Loan prices reflect steep discounts: Emeria's March 2028 term loan at about 70 cents on the euro, Ammega's December 2028 loan at 79 cents, and Breitling's October 2028 debt at 82 cents.
- • The restrictions may reduce secondary-market liquidity and complicate exits for existing CLO and institutional lenders.
Summary
Partners Group, the Zug-based Swiss private equity manager, is restricting hedge funds and distressed-debt investors from acquiring loans issued by three struggling portfolio companies while it negotiates the refinancing of roughly €6bn in debt due in 2028, according to Bloomberg. The affected companies are French property services group Emeria, Dutch conveyor belt manufacturer Ammega and Swiss watchmaker Breitling.
The firm is relying on approved lender lists, commonly known as white lists, which allow private equity sponsors to control which investors can hold a company's loans. According to reports, Partners Group has rejected requests from hedge funds to join Emeria's approved lender list. The restrictions are designed to prevent distressed-debt funds from accumulating discounted debt and using that position to push for creditor-friendly restructurings or control of the business. Restrictions on Ammega are described as among the most stringent in the leveraged loan market, including limits on access to financial information and on loan purchases, while Emeria's bonds remain accessible to distressed investors.
Emeria is negotiating with creditors over its €3.6bn debt burden, and Partners Group may be required to inject additional capital to secure a refinancing agreement. Loan pricing highlights the stress in the credit: Emeria's March 2028 term loan was quoted at around 70 cents on the euro, versus 79 cents for Ammega's December 2028 loan and 82 cents for Breitling's October 2028 debt, according to Bloomberg data.
The restrictions carry trade-offs for lenders. While they can protect creditors from aggressive restructuring tactics, including transactions that improve some lenders' priority over others, they also shrink the pool of potential buyers and may limit liquidity. Existing creditors, predominantly collateralised loan obligations (CLOs) and other institutional lenders, may find exits more difficult as secondary demand weakens.
Hedge funds can sometimes gain economic exposure through loan sub-participations arranged by banks. However, Partners Group's loan documentation reportedly allows borrowers to identify ultimate economic holders and, in certain circumstances, to restrict or cancel such transactions. The firm said it has refinanced, raised or repriced more than $49bn of debt across its private equity portfolio since 2024.
The firm is relying on approved lender lists, commonly known as white lists, which allow private equity sponsors to control which investors can hold a company's loans. According to reports, Partners Group has rejected requests from hedge funds to join Emeria's approved lender list. The restrictions are designed to prevent distressed-debt funds from accumulating discounted debt and using that position to push for creditor-friendly restructurings or control of the business. Restrictions on Ammega are described as among the most stringent in the leveraged loan market, including limits on access to financial information and on loan purchases, while Emeria's bonds remain accessible to distressed investors.
Emeria is negotiating with creditors over its €3.6bn debt burden, and Partners Group may be required to inject additional capital to secure a refinancing agreement. Loan pricing highlights the stress in the credit: Emeria's March 2028 term loan was quoted at around 70 cents on the euro, versus 79 cents for Ammega's December 2028 loan and 82 cents for Breitling's October 2028 debt, according to Bloomberg data.
The restrictions carry trade-offs for lenders. While they can protect creditors from aggressive restructuring tactics, including transactions that improve some lenders' priority over others, they also shrink the pool of potential buyers and may limit liquidity. Existing creditors, predominantly collateralised loan obligations (CLOs) and other institutional lenders, may find exits more difficult as secondary demand weakens.
Hedge funds can sometimes gain economic exposure through loan sub-participations arranged by banks. However, Partners Group's loan documentation reportedly allows borrowers to identify ultimate economic holders and, in certain circumstances, to restrict or cancel such transactions. The firm said it has refinanced, raised or repriced more than $49bn of debt across its private equity portfolio since 2024.
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