The US-based public pension fund first brought its $520 million portfolio of large buyout funds to the secondary market in February 2011, in order to decrease the number of managers it is committed to and to reduce exposure to underperforming funds. It is now reported to have completed the sale to an undisclosed buyer. The portfolio, which consists of seven funds, includes stakes in funds managed by Apollo Global Management, TPG and Warburg Pincus. Cogent Partners brokered the sale.
This sale continues a trend of large US public pension funds looking to consolidate their private equity portfolios, reducing the number of, or recycling, their manager relationships to improve performance and reduce costs. New Jersey State Investment Council has reportedly hired Cogent Partners to broker a sale for a private equity portfolio consisting of US-focused mega-buyout and growth funds. Earlier in the year, California Public Employees' Retirement System (CalPERS) reportedly sold a private equity portfolio worth around $800 million, consisting of large buyout fund interests with well known managers to Dutch fund of funds manager AlpInvest Partners.