EXCLUSIVE: Evercore wins major secondary mandate to sell GE’s $1 bln portfolio

The portfolio contains about 100 funds, according to one of the people. Another person said the portfolio contains a “mixed bag” of funds in terms of quality, including some older, “tail end” type vehicles.

Evercore and GE Capital did not return calls for comment.

The funds are managed by GE Capital’s Americas Equity Finance unit. The group invests in growth companies, buyouts and special situations, co-invests in sponsor-led deals and makes fund commitments, according to the company’s website.

Bloomberg reported on the potential sale last month. Sources confirmed Bloomberg’s reporting that the secondary sale is being driven by the Volcker Rule portion of the Dodd-Frank financial reform law. Under the rule, banks are barred from investing more than 3 percent of their Tier 1 capital in private equity and can’t own more than 3 percent of a fund. Bloomberg reported that GE was interviewing several firms to help sell the portfolio.

Evercore is an up-and-comer in private equity secondary advisory, having formed its team over the summer. However, it brought on one of the biggest names in the business, Nigel Dawn, who ran UBS’ high-profile group for 16 years.

Dawn was joined at Evercore last year by his former colleague Nicolas Lanel, who is heading up the team’s European secondary advisory efforts.

Evercore competes for private equity secondary mandates with other well-established shops like Cogent Partners and UBS, as well as newer players in the market like Park Hill Group and Campbell Lutyens.

Chris Witkowsky is editor of peHUB.