The Swedish Insurance company has made available up to €1.5bn worth of private equity fund interests on the secondary market and has hired Campbell Lutyens to manage a sale process. The Insurance company is an experienced private equity investor having begun making commitments to the asset class. In recent years, it has mainly focused on buyout vehicles, with a preference for developed market focused vehicles – in particular in North America and Europe. It is likely that the majority of the available interests will contain such vehicles, with some of its known fund commitments including BC European Cap VII, BC European Cap VIII, Charterhouse Capital Partners VIII and Doughty Hanson & Co II
Currently, Preqin tracks 287 expected and potential sellers of private equity or real estate fund interests on the secondary market. Of these LPs, around 10% are insurance companies. It is expected that there will be pressure on this firm type to exit positions in illiquid assets such as private equity, due to the capital adequacy requirements of the imminent Solvency II regulation. Another insurance company believed to be considering a sale of private equity fund interests is the US-based Travelers Companies, which has a private equity commitments portfolio consisting of US and Europe-focused buyout and venture capital vehicles.