Global buyout funds, which are more diversified in investment geographies, are sometimes offered at a single-digit discount
[HONG KONG] The National University of Singapore is divesting at least US$500 million in private equity and real estate funds to manage liquidity and rebalance its China exposure, according to sources with knowledge of the matter.
The university, which has total funds and reserves of more than S$15 billion, is one of the city-state’s largest endowment allocators. Global buyout and China-focused funds are among those it is seeking to sell, the sources said, asking not to be identified as the discussions are private.
Asia asset owners are increasingly turning to the secondary sales market – many for the first time – to shore up liquidity, which has been challenged by lower returns from private equity in recent years. Sales of such portfolios often come with a discount to the net asset value in return for getting the capital sooner.
Funds of Advent International, China tech-focused managers Shunwei Capital and ForeBright Capital, and Hong Kong-based Gaw Capital Partners are among those the university is looking to sell, the sources said. The process is still ongoing and details of the portfolio for sale could change, the sources said.
