DuPont Capital sold eight private equity fund positions during the second half of 2014, according to managing director and portfolio manager Kevin Campbell.
The fund interests priced individually at a minimum of par to net asset value, with the majority selling at a premium to NAV.
“We would not have considered selling at a discount,” Campbell said. “We’re far from a distressed position.”
Campbell explained DuPont Capital decided to sell certain assets after receiving an influx of phone calls from buyers and intermediaries. He called it “more of a tactical decision” and a reaction to the pricing climate in the secondaries market.
The eight fund interests were selected based on which funds DuPont Capital felt least optimistic about.
“The most important piece is how we think the fund is going to perform in the future,” Campbell said. “Then, we consider the hold period for remaining assets and whether we want to continue a relationship with the GP going forward.”
Campbell said the firm also considered whether secondaries buyers would find the select fund positions attractive: “Is there value in the GP name?”
DuPont Capital used an intermediary to conduct the sale and the assets were sold to multiple buyers.
Historically DuPont Capital has been more active on the buy-side, but it only completed one deal last year. It purchases interests in private equity funds with less than $1 billion. It invests from its flagship private equity fund, which used to allocate 15 percent of its capital to secondaries, Campbell said in August.
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