Secondary market activity has continued to increase during 2011. With reports of a number of large secondary market deals completing throughout the year so far, secondary market deal volume is estimated to have reached $14 billion in H1 2011.
The largest secondary transaction to have taken place this year so far was Citigroup’s sale of a $1.7 billion portfolio of private equity fund stakes to AXA Private Equity in June. The portfolio consists of 207 limited partnership interests in buyout funds including stakes in funds managed by Carlyle Group, Providence Equity Partners, Kohlberg Kravis Roberts and Blackstone Group, and direct stakes in approximately 20 companies.
The second biggest secondary transaction, which completed in August this year, was HSH Nordbank’s sale of a €620 million portfolio to LGT Capital Partners and AXA Private Equity. The portfolio reportedly included interests in 47 private equity funds - ranging from small to large cap Europe-focused buyout funds- including those managed by Kohlberg Kravis Roberts, Carlyle Group and Cinven.
The third largest secondary deal, which also took place in August, was UK-based fund of funds manager, Hermes GPE’s, sale of a portfolio of private equity fund stakes to Pantheon Ventures. The portfolio (speculated to have sold between €600 million and €1 billion) is said to predominantly consist of buyout funds.