It has been reported that Italian insurance company, Assicurazioni Generali, is looking to exit a number of its private equity commitments via a secondary market transaction. The company is believed to be selling a portfolio of fund interests worth an approximate €500mn. It is believed that a majority of the portfolio in question is comprised of leveraged buyout funds. Assicurazioni Generali will be organising the sale itself; a secondaries intermediary has not been appointed to work on the deal. Assicurazioni Generali has previously sold assets on the secondary market to Lexington Partners, in a transaction involving $400mn in private equity fund stakes in July 2012.
This is the latest example of a financial institution seeking to dispose of its private equity interests on the secondary market. 2012 saw a spate of such sales from banks and insurance companies which face regulatory pressures to reduce their exposures to the asset class; however, 2013 was fairly quiet in terms of these types of sales. In December 2012, Swedish insurance company Länsförsäkringar sold private equity fund interests worth €1.5bn in one of the largest offerings to come from an investor based in Europe. Abu Dhabi Investment Council and QIC were the buyers of the portfolio, which included stakes in funds managed by leading firms such as Bain Capital, Advent International, Apax Partners and BC Partners.