AlpInvest among buyers in bumper Future Fund sale – exclusive

Future Fund has offloaded a large portfolio of fund stakes through several transactions.

The Australian sovereign wealth fund sold more than $2 billion of private fund stakes, with AlpInvest Partners accounting for the largest share, according to two sources familiar with the matter.

The other buyers included a mix of secondaries funds and non-traditional buyers, according to one of the sources. Part of the process was advised by Greenhill, part carried out by Future Fund itself, it is understood.

Pricing and terms were agreed before the coronavirus crisis took hold, Secondaries Investor understands. It is not clear if the deal consisted of a preferred equity component.

A UK public filing dated 6 May noted that Future Fund transferred a stake in 2016-vintage buyout fund Charterhouse Capital Partners X to vehicles linked to AlpInvest Secondaries Fund VI and AlpInvest Secondaries Fund VII. Fund VII has been in market since November targeting $8 billion, Secondaries Investor reported.

Secondaries Investor reported in October that Future Fund was coming to market with more than $1 billion of stakes, six months after the appointment of new head of private equity Alicia Gregory.

Managers the SWF invests with include Advent International, Bain Capital, Hellman & Friedman, Adams Street Partners, New Enterprise Associates and Vitruvian Investment Partners, according to its website. It is not clear what was sold in this sale.

Last September, Future Fund’s deputy chief investment officer Wendy Norris said the institution had exited around A$5 billion ($3.4 billion; €3.1 billion) of private markets investments in the last few years, in comments reported by Secondaries Investor.

“When assets become mature and the expected look-forward return has decreased, we look to sell them and redeploy the capital within the portfolio,” she said.

Future Fund did not respond to a request for comment. AlpInvest, Greenhill and Charterhouse declined to comment.