China to buy LP interests from GM pension plan

According to the Financial Times, the State Administration of Foreign Exchange (SAFE), which is responsible for China's more than $3tn in foreign currency holdings, will pay $1.5-2bn for the assets. Performance Equity, an advisory firm that manages pension investments for GM and its affiliates, is said to have told several private equity firms that it plans to exit some of its stakes via secondary transactions.

Numerous North American institutional investors are seeking to scale back their exposure to private equity in order to lower liquidity risk in their portfolios. This, combined with banks trimming their holds to comply with Volcker Rule and Basel III requirements, led Campbell Lutyens to predict that secondaries transaction volume will surpass $30bn for the first time this year, up from $22bn in 2011.

This article was originally published in unquote's sister publication AVCJ. Read the full article here

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• Topics
• Secondaries
• LP interest secondary