New Secondary Market Sellers Entering the Market

by Antonia Lee

  • 08 Mar 2012
  • PE

Preqin’s research shows that there are currently 287 investors considering exiting private equity or real estate fund investments on the secondary market within the next 24 months, which accounts for 16% of all those investors interviewed about their secondary market plans for the next two years. 9% of these investors are looking to make a secondary sale immediately, and a further 76% are planning to do so within the next 12 months.

There have been several new institutional investors entering the secondary market looking to sell portfolios of private equity or real estate fund stakes over the past month. One investor that recently announced plans to sell off a portfolio of private equity fund investments is Oak Pension Asset Manager. It is looking to sell £350 million pounds worth of private equity fund interests. The firm, which manages the Barclays Bank UK Retirement Fund, has hired Cogent Partners to manage the sale of the portfolio, thought to be made up of commitments to US and European buyout funds.

Another investor looking to exit fund investments is Fuller, Smith & Turner Pension Scheme. The UK-based pension fund is considering the possibility of selling private real estate fund stakes on the secondary market. It has reached its 1% allocation to the asset class but was exhibiting a preference for more liquid investment structures, so was considering exiting its core private real estate holdings.

Also on the sell side, Alliance Trust Equity Partners has almost completely wound down its private equity portfolio. The investment trust has been working on an orderly disposal of its private equity funds at its shareholders’ request, but is known to still hold several co-investments and fund investments which it is looking to sell within the coming months.

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