The Danish investment bank, which has DKK 100bn in assets under management, announced earlier in the year that it had decided to stop investing in the private equity asset class. Since then, it has now been reported that the bank is looking to sell off its portfolio of private equity fund investments via the secondary market. Its portfolio is known to primarily consist of buyout funds investing in Europe, with a particular focus on the Nordic region. This move comes at a time when we have seen a surge of banks looking to exit alternative investments due to regulatory and legislative pressures.
Another institution currently looking to offload a portion of its private equity portfolio is Harvard Management Company. The $35bn endowment plan is looking to sell $1bn worth of its US buyout fund stakes on the secondary market; UBS Investment Bank Private Funds Group is acting as the intermediary. The investor is also in the process of taking bids for a $500mn portfolio of energy funds through Cogent Partners. In general, Harvard Management Company is open to using the secondary market to exit funds and free up cash, and is known to have brought several private equity and real estate portfolios to the secondary market in the past.
Finansieringsinstituttet for Industri og Handvaerk and Harvard Management Company are just two examples of the 285 sellers currently tracked by Preqin, 13% of which are looking to make a secondary market sale immediately.