LP Sales

As part of the system’s policy established in 2022, the pension has been building exposure to areas of private equity it may have skipped in the past such as smaller funds and growth-focused GPs.

The pension giant is understood to be looking to offload LP stakes valued between $2bn and just over $3bn.

AlpInvest chair Ruulke Bagijn and global head of primaries Wendy Zhu say that the Carlyle secondaries unit is seeing higher quality LP-led opportunities come to market.

Fund of funds sales represented the majority of LP transactions by asset managers last year, according to a recent full-year 2023 volume report.

In this sixth episode of the Decade of Secondaries Investing podcast miniseries, we sit down with HarbourVest Partners' Jeffrey Keay and PJT Park Hill's Adrian Millan to discuss the phenomenon of repeat sellers in the secondaries market.

More LPs are considering secondaries sales as pricing has strengthened since last year, with high-quality buyout funds capturing pricing at the 90% or higher net asset value range.

The deal is part of a wave of LP secondaries driven by fund investors' desire to get proceeds from older funds.

The deal comes as LP secondaries sales keep steady and drive activity with strong pricing and sellers eager to capture liquidity from private equity portfolios.

The system has not yet finalised a contract with a secondaries adviser.

As the LP-led market grows ‘white hot’, mosaic transactions are sparking debate among some practitioners over the impact on returns.