The listed private equity fund of funds manager SVG Capital has sold its interest in the buyout fund Permira Europe III, receiving a total of $90.2mn for the interest. This represents a 13.3% reduction on the fund manager’s valuation of the assets in September 2012. SVG Capital is seeking to actively manage its balance sheet; as part of this management it assesses the merits of its more mature private equity assets in terms of incremental returns against the freeing up of capital for other uses through a sale of interests. Therefore, it is possible that it could sell further interests on the secondary market.
Listed fund of funds managers have faced trading at NAVs below their underlying asset values in the current economic climate, and some have sought to sell interests in private equity funds in light of pressure from their investors. Earlier this year, listed fund of funds manager Conversus Asset Management sold its entire private equity portfolio, which consisted of private equity funds and direct co-investments interests, to HarbourVest Partners; the transaction was valued at $1.4bn. Conversus had built up a diversified portfolio of interests; in September 2011, as a result of assets trading below NAV, it began pursuing a permanent harvesting strategy which prohibited new investments and explored means of enhancing unit holder value.