Partners Group’s private markets royalties strategy has reached $1.5 billion in assets under management (AuM), marking a 50-percent increase over the past six months, the Swiss investment firm announced on Friday.

The Zug-based private markets manager launched the cross-sector strategy in early 2024 and has since established one of the industry’s largest diversified royalty portfolios.

Portfolio Tops 50 Investments

So far this year, Partners Group has completed eight royalty transactions, bringing the total portfolio to 53 investments across multiple sectors. Since the strategy’s launch, the firm has added 30 new royalty investments to an initial seed portfolio with an established performance record.

Recent acquisitions illustrate the breadth of the strategy. They include royalty interests linked to the long-running animated television series «South Park», a pharmaceutical treatment for cardiac arrhythmia, and natural gas production in the Appalachian Basin in the United States.

According to Partners Group, the portfolio has generated annualized net returns of around 12 percent since inception.

Appeal Beyond Traditional Private Markets

Unlike conventional private equity investments, royalties generate contractual cash flows tied to revenues from intellectual property, natural resources, or other assets. The strategy aims to provide investors with diversified and relatively resilient income streams that are less dependent on economic cycles.

Partners Group said the strategy is available through dedicated evergreen funds for both institutional investors and private wealth clients, reflecting growing demand for alternative sources of income and portfolio diversification.

The expansion of the royalties platform also broadens the firm’s range of evergreen investment solutions, an area that has become increasingly important for attracting long-term capital from private investors.