PG3

What they fund

PG3 funds niche alternative asset classes, including Legal Finance, Litigation Finance, Legal Credit, Opportunistic Insurance Finance, Core Reinsurance of Nat Cat, and Royalty Finance [1]. The firm seeks uncorrelated returns and diversification in underlying sectors and investment structures [1].

Investment thesis

PG3 AG is the family office of the Partners Group, focused on providing investors with exposure to uncorrelated returns through niche alternative asset classes [1]. The firm employs an active relative value approach within these asset classes, leveraging deep domain expertise to identify mispricings [1]. PG3 prioritizes money multiple over Internal Rate of Return (IRR) and is willing to completely deallocate from asset classes or sub-strategies to preserve capital [1]. The firm invests alongside best-in-class investors, aligning interests on both downside and upside [1].

Value add

PG3 leverages deep domain expertise in its niche asset classes to identify mispricings and opportunities [1]. The firm aligns interests with investors on both downside and upside, investing alongside best-in-class investors [1]. Fit verdict: PG3 is a sophisticated investor for large, uncorrelated capital allocations in niche alternative assets. Founder diligence script: 1. How does PG3's relative value approach identify mispricings in your specific asset class? 2. What is PG3's typical holding period and exit strategy for Legal Finance or Insurance Finance investments? 3. How does PG3 align its interests with investors on the downside?

Portfolio focus

The firm's portfolio clusters around niche alternative asset classes that are largely uncorrelated to traditional asset classes [1]. Specific portfolio companies are not publicly disclosed in the provided documents.

Notable investments & exits

Notable exits are not publicly disclosed in the provided documents.

Strategic implications

PG3's edge lies in its niche focus on alternative asset classes like Legal Finance and Insurance Finance, which are largely uncorrelated to traditional markets. The firm's willingness to deallocate from asset classes suggests a flexible, opportunistic strategy that can adapt to market conditions. The signal that would change the read is if PG3 expands into more traditional asset classes or reduces its focus on niche alternatives.

Where they could go further

PG3 could explore emerging niche asset classes, such as climate finance or digital asset litigation, to further diversify its portfolio. The firm could enhance its value-add by providing more operational support to its portfolio companies, particularly in Legal Finance and Insurance Finance. PG3 could improve its transparency by disclosing more details about its investment process and performance metrics.