Breitling AG (House of Brands) Under Pressure Due to Partners Group’s 6 Bn Euro Debt

Three companies in its portfolio—Breitling, Emeria, and Ammega—collectively have nearly 6 billion euros in debt to refinance, much of which matures in two years. The investment manager thus finds itself in the position of having to support all three heavily indebted companies simultaneously, in an economic climate where borrowing costs remain high and investors have become more cautious.

The watchmaker (which now includes the Breitling, Gallet, and Universal Genève brands) must notably refinance part of its debt in October 2028. In this context, there is an additional challenge: today, these debts are trading below their face value on financial markets, which means investors view them as riskier than when they were originally issued.

In July 2025, Standard & Poor’s downgraded Breitling’s credit rating from B to B-, citing continued weak demand, primarily due to the slowdown in the luxury market, a more cautious customer base, and declining spending on international tourism.

The Swiss company also saw its sales decline by about 3% in 2025, and this year, management decided to cut more than fifty jobs.

As mentioned above, the problem for Partners Group is that Breitling is not the only case it has to manage. The Emeria real estate group alone has approximately 3.5 billion euros in debt and represents the most complicated situation in the portfolio.

The manager will therefore have to decide how to allocate its resources among several companies that will need to refinance their debt almost simultaneously. It is also important to consider that Partners Group’s recent half-year results further weigh on the situation: profit fell 13% to 502 million Swiss francs, while revenue declined 7% to 1.12 billion francs.

For Breitling, the challenge is therefore twofold. On the one hand, the Swiss watchmaker must continue to invest in its growth trajectory through its network of boutiques, new products, and the strengthening of its brand identity. On the other hand, its shareholder must maintain sufficient financial flexibility to renegotiate its debt on favorable terms. Founded in 1884 in Saint-Imier, Breitling remains one of the major Swiss watchmakers independent of the large luxury groups.