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Written by Kane Wu and Julie Zhu
HONG KONG (Reuters) – Swiss investment firm Partners Group has launched a new private equity secondaries strategy fund worth up to $12 billion, betting on growing deal flow in the sector, the firm said on Tuesday. The chairman in charge made the announcement on Tuesday.
Private equity secondary markets, which allow investors in private equity funds and private companies to exit early and free up capital, have become increasingly popular in recent years.
“We’re seeing much larger deal flow on the secondary side,” said Kevin Lu, partner and chairman of Asia for Partners Group, at the Milken Institute’s inaugural Global Investors Meeting. just launched the No. 8 private equity secondaries strategy (fund).” Symposium in Hong Kong.
“It will be a $10 billion to $12 billion strategy (fund) that will be larger than the last fund,” Lu added.
Switzerland-based Partners Group raised $3.2 billion and $2.8 billion for its last two supplementary funds in 2020 and 2016, respectively, according to data from research firm Pitchbook.
Founded in 1996, Partners Group manages $147 billion in assets across private equity, real estate, infrastructure, credit and secondaries around the world, according to its website.
The company has seven offices in the Asia-Pacific region, including Shanghai, and plans to open an office in Hong Kong, two people familiar with the matter said, asking not to be identified as the information is private. Ta.
Partners Group declined to comment.
According to Lu, the slow realization of private equity and the rising cost of capital has led more fund investors (also known as limited partners) to turn to alternatives such as the secondary market for an exit. It is said that it has become.
“We’re probably seeing two or three times as much deal flow on the secondary side,” he said. “We’re going to see this whole space grow.”
Lu said about 20% of Partners Group’s nearly $150 billion in private markets managers are placed in secondary transactions.
Last year, $23.2 billion worth of capital was raised through 39 secondary funds worldwide, up from $15.2 billion raised through 30 secondary funds in 2022, according to Preqin data.
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