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Banks and Investment Banks Making Secondary Market Sales

by Antonia Lee

  • 21 Jul 2011
  • PE

At present, there are 34 banks and investment banks that are looking at the possibility of selling private equity or real estate fund stakes on the secondary market within the next 24 months. This accounts for 12% of all potential sellers, which forms the largest portion of all firms looking to sell on the secondary market. A considerable 32% of banks and investment banks are looking to make a sale immediately, with a further 65% are looking to do so within the next 12 months.

Among the banks and investments banks looking to exit private equity fund stakes immediately is Bank of America. It is offering around $250 million worth of private equity interests to potential buyers. The portfolio, which is made up of around 50 private equity funds, is reported to primarily consist of US buyouts. Park Hill Group is acting as intermediary.

One bank that has already been involved in selling off private equity fund investments this year is Barclays Bank. It recently sold a portfolio of private equity interests valued at $740 million to AXA Private Equity. Increasing numbers of banks are looking to sell private equity fund investments in order to exit non-core assets or due to regulatory pressures, such as the Volcker Rule, which is forcing them to reduce exposure to alternative investment vehicles.

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