Deutsche Bank’s ongoing plans to unravel its exposure to private equity allowed AXA Private Equity to acquire 21 of its LP interests worth a collective US$382m. The deal was made from Axa’s €250m early fund of funds, which committed US$120m to the transaction. Less than 50% of the commitments are funded and most equate to mature US funds, which invest significantly in
The move, which follows eight previous investments by AXA, is the latest manifestation of growing liquidity in the secondaries market. Adveq is planning to launch its third European fund of funds. Pantheon, the private equity arm of Russell Investment Group, also bought a portfolio of US buyout assets.
Adveq focuses on top-tier private equity funds and has US$1.5bn under management. The new programme will be of limited size and is scheduled for launch in the first quarter of next year. It will be placed with a limited number of predominantly institutional investors.
Pantheon bought over 20 assets focused mainly on the US. This is the second investment from Pantheon II after the purchase of a €258m portfolio or private equity interests from Swiss Life a few weeks ago.
In 2003, Deutsche Bank closed a landmark securitisation of its US private equity investments through a Collateralised Fund Obligation – Silver Leaf 1 Ltd. At the time, it was the first CFO to sell the entire capital structure. The deal used traditional ABS technology resulting in a multi-tranche offering that offered notes right along the rating curve.