Abu Dhabi Said to Explore $2 Billion Sale of Fund Stakes - Bloomberg

Abu Dhabi Said to Explore $2 Billion Sale of Fund Stakes - Bloomberg:



"Abu Dhabi Investment Authority, one of the world’s largest sovereign-wealth funds, is said to be considering selling as much as $2 billion in private-equity fund stakes.



ADIA, which invests on behalf of the government of Abu Dhabi, hired Cogent Partners to advise on the sale, two people with knowledge of the deal said. The portfolio consists mostly of positions in buyout funds, said the people, who asked not to be identified because the information is private.



Institutional investors including California Public Employees’ Retirement System, Teachers’ Retirement System of the State of Illinois and New York City’s police, fire and civil-employee pension plans have turned to the secondary market in recent years to rebalance holdings and reduce relationships with external managers. Pricing is attractive to sellers because of strong public markets and distributions to clients, according to Cogent. The average high bid for buyout-fund stakes reached 92 percent of net asset value in the second half of last year, making it the first time pricing exceeded 90 percent since 2007, the investment-banking firm said in January."



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