Citi stays cautious on European private markets and downgrades Partners Group

Citi reiterated caution on European alternative asset managers, arguing that even if private markets recover, the improvement could stall over the next 6 to 12 months. Ahead of EQT’s results, the bank favours Bridgepoint and CVC but flagged downside risk to EQT earnings. Overall, the note is a risk-focused setup for the sector into the upcoming earnings prints.

Analysis

Citi reiterated caution on European alternative asset managers, arguing that even if private markets recover, the improvement could stall over the next 6 to 12 months. Ahead of EQT’s results, the bank favours Bridgepoint and CVC but flagged downside risk to EQT earnings. Overall, the note is a risk-focused setup for the sector into the upcoming earnings prints.