The news that HVB Group is reportedly seeking to dispose of private equity fund interests in the secondary market is an indication of the expectation that banks will be important suppliers of interests in the market in the coming months as they seek to conform to new banking regulations. The Germany-headquartered bank is seeking to dispose of private equity interests worth €600mn on the secondary market. It is believed that UBS Investment Bank Private Funds Group has been commissioned to manage a sales process. HVB Group has utilized the secondary market to dispose of fund interests in the past, and it is believed it sold around €300mn worth of private equity fund interests in 2012. HVB Group plans to continue to make new private equity commitments however, and would consider opportunities to acquire fund interests on the secondary market.
Preqin is currently profiling 40 banks and investment banks that are likely, possible or opportunistic sellers of fund interests on the secondary market in the next 24 months. The majority of these (70%) are based in Europe.