French private equity fund of funds manager, AXA Private Equity, has purchased a $1.7bn private equity portfolio from Citi Private Equity, which manages the private equity fund commitments, non-control direct private equity investments and mezzanine investments on behalf of Citi's proprietary accounts. The portfolio consists of 207 limited partnership interests in buyout funds and also some direct stakes in companies. The sale is part of an ongoing effort to reduce Citigroup’s exposure to non-core assets on its balance sheet.
Preqin’s Secondary Market Monitor currently contains profiles for 255 companies which have expressed some level of interest for selling off private equity or private real estate fund stakes on the secondary market. One institutional investor currently looking to dispose of private equity assets via the secondary market is New Jersey State Investment Council. In order to make room for new private equity commitments, it has hired Cogent Partners to assist in selling off a portion of its private equity portfolio. The $74.7bn public pension fund, which considers itself an opportunistic secondary market seller, is looking to exit approximately $1bn, in 15 to 20 private equity fund stakes. The portfolio is reported to consist of US-based growth and mega-buyout funds.