A surge in new investor capital more than doubled the vehicle’s size, even as a heavy tax charge pushed net investment income deep into the red.

June 11, 2026

Partners Group Next Generation Infrastructure, LLC closed its fiscal year ended March 31, 2026 with net assets of roughly $271 million, more than double the prior year’s total, as a wave of investor commitments combined with portfolio gains to fuel rapid expansion. The Delaware-organized investment company reported an 11.3% total net return for its Class I units over the period, according to its annual report to members.

The fund operates as a registered closed-end vehicle that invests across private infrastructure markets, using a mix of direct, secondary, and primary commitments. It is advised by Partners Group (USA) Inc. and shares its New York headquarters and parent organization with the Partners Group lending vehicle covered earlier in this chat [[ ]], though the two funds pursue distinct strategies.

Rapid Growth in Scale

Net assets climbed from about $117.1 million a year earlier to nearly $271 million, an increase of roughly $153.9 million. The bulk of that growth came from capital inflows rather than market gains. Investors contributed approximately $141.6 million across the fund’s four unit classes during the year, led by $133 million of Class I subscriptions, while redemptions and repurchases offset a portion of the total. Net capital transactions added about $131.6 million.

Operations contributed a further $22.3 million to net assets, up from $16.4 million the prior year. Net asset value per unit settled near $1.90 to $1.91 depending on the class, with Class I, the largest by far, holding roughly $261.6 million of the fund’s value.

A Steep Tax Charge Weighs on Income

Beneath the headline return sat a sharply negative net investment result. The fund recorded a net investment loss of about $19.2 million, driven less by weak revenue than by elevated expenses. Total investment income reached only $1.6 million, reflecting the equity-oriented nature of the portfolio, which generates appreciation rather than steady interest.

Against that modest income, total expenses approached $21.2 million. The single largest line item was a tax charge of roughly $11.8 million, which alone exceeded all investment income several times over. Incentive fees of about $3.9 million and management fees of nearly $2.5 million followed. The adviser waived approximately $407,656 in management fees under a temporary arrangement, leaving net expenses near $20.8 million.

The fund’s positive overall return was therefore powered almost entirely by gains below the income line. Net realized gains and unrealized appreciation, together with a deferred tax benefit, contributed about $41.5 million. Unrealized appreciation on investments alone added roughly $23.7 million, and realized gain distributions from primary and secondary holdings supplied another $12.4 million.

Portfolio Composition

Private equity investments represented about 73.95% of net assets, carried at a fair value of roughly $200.4 million against a cost basis of about $145.4 million, signaling substantial embedded appreciation. Including cash equivalents, total investments stood at about $292.4 million, or 107.92% of net assets.

The portfolio offered direct and indirect exposure to more than 225 underlying companies, weighted 68% toward North America and 32% toward Europe. By value, the allocation broke down as follows:

• Secondary investments: 56% of portfolio value across 26 positions
• Direct holdings: 39% across 15 positions
• Primary commitments: 5% across nine positions

Management emphasized a disciplined approach, noting that it accepted fewer than 5% of the opportunities it screened and aimed to keep monthly cash balances below 10%. Direct equity holdings spanned digital infrastructure, energy, and utilities names including stakes tied to DigitalBridge, EdgeCore, EQT Infrastructure vehicles, and Southern Water, among others. The adviser described a strategy of acquiring mid-stage businesses with value-creation potential at reasonable valuations rather than paying premiums for established core assets.

Commitments and Borrowing Capacity

As of the year-end date, the fund had funded about $165.7 million, or 69.78%, of roughly $237.4 million in total commitments to private equity investments. Funded amounts broke down to $57.6 million of $98.7 million in direct commitments, $100.7 million of $121.7 million in secondary commitments, and $7.4 million of $17 million in primary commitments.

The fund also secured fresh borrowing capacity during the year. On September 30, 2025, it entered a revolving credit agreement with JPMorgan Chase Bank carrying a maximum commitment of $50 million and a maturity of October 2, 2028. Advances would bear interest at benchmark rates plus a margin of 2.70%, with an unused commitment fee scaling between 0.80% and 1.20% depending on utilization. The fund drew no borrowings under the facility during the year and remained in compliance with all covenants.

Liquidity and Fee Terms

Members face limited liquidity. The board may conduct quarterly repurchase offers, which the adviser expects to recommend at no more than 5% of net assets on or about the first day of each calendar quarter. A repurchase amount payable of roughly $10 million sat on the books at year-end tied to a tender offer. An early repurchase fee of 2% applies to units sold before the first anniversary of purchase.

The adviser earns a monthly management fee equal to an annualized 1.25% of net assets, subject to the temporary 0.25% waiver running through June 30, 2026. It is also entitled to an incentive fee of 15% of net profits above the balance of a loss-recovery account that protects members from paying performance fees until prior losses are recouped.

Market Backdrop and Outlook

Management framed the year against renewed momentum in private infrastructure, citing record digital infrastructure investment in the United States driven by artificial intelligence demand and rising power needs, alongside active liquid natural gas and renewables development. The adviser pointed to three consecutive quarter-point Federal Reserve rate cuts late in the period and acknowledged fresh uncertainty from tariffs and Middle East conflict, while noting limited direct exposure to those events and potential tailwinds for energy holdings.

The independent auditor, PricewaterhouseCoopers LLP, issued an unqualified opinion dated May 30, 2026. Management reported no subsequent events requiring disclosure.