Already this month we have seen reports of a number of private equity secondary market transactions, including the $10.8 million purchase of limited partnership interests in EnCap Energy Capital Fund V, EnCap Energy Capital Fund VI and EnCap Energy Capital Fund VII by Indiana Public Employees’ Retirement Fund (IPERF). The transaction followed the pension system’s acquisition earlier in 2009 of a position in Clarity Partners China.
Also on the buy side, Los Angeles Fire and Police Pension System (LAFPP) received approval from its board for the purchase of a private equity fund interest on the secondary market. The $11 billion public pension fund will increase its position in Giza Venture Fund IV, an early stage venture capital fund which closed in 2005 on $213 million, with the purchase of an additional stake of up to $10 million. LAFPP initially committed $5 million to the fund managed by Giza Venture Capital, which has yet to confirm the exact size of the purchase.
On the sell side, CDP Real Estate Group hired Probitas Partners to sell a portion of its $1 billion stake in Lone Star Fund VI, the private equity real estate fund. The asset manager is hoping to achieve liquidity through the transaction while maintaining a large, if not the largest, interest in the fund.
Separately, Pomona Capital, the private equity secondaries specialist, closed its seventh dedicated secondaries fund on $1.3 billion, exceeding its fundraising target of USD 1 billion following substantial oversubscription. The fund will purchase interests in seasoned buyout and venture capital vehicles.
The private equity secondaries market is a rapidly evolving and non-transparent market. The new Preqin Secondary Market Monitor provides vital intelligence for sellers, buyers and advisors. Click here to find out more.