French private equity fund of funds manager AXA Private Equity has bought a portfolio of private equity fund interests from Ontario Municipal Employees Retirement System (OMERS). The interests were put up for sale last month in a process run by UBS Investment Bank Private Funds Group, with OMERS said to have been keen for a quick completion. The $850mn portfolio consists mainly of North American and global funds, including those managed by Kohlberg Kravis Roberts, TPG, Apax Partners and Hellman & Friedman. OMERS plans to move away from fund investing and focus on direct investments; it is likely that it will bring further interests to market given this strategy and the size of its fund portfolio.
The purchase made by AXA Private Equity comes shortly after the announcement that it has raised $7.1bn for secondary market purchases. The capital was raised by AXA Secondary Fund V, which includes the early secondaries component. It has a preference for buyout, growth equity and venture capital funds, and direct interests in portfolios of operating companies. The fund, which was 40% committed at the time of closure, will be actively seeking new secondary market investment opportunities going forward.
Preqin currently tracks 32 private equity secondaries vehicles targeting an aggregate $30.1bn, including a number of other large vehicles. Secondary fund of funds manager Coller Capital is raising Coller International Partners VI, which has a $5bn target and focuses on purchasing portfolios of private equity assets, including interests in established private equity funds and privately held companies on a global scale. Goldman Sachs is also in the process of fundraising for its latest secondaries vehicle, with a target to raise $4.5bn from investors.