Many public institutions in the US are exploring portfolio sales thanks to a confluence of factors that has left them at, or above, their private equity allocations.
LPs are beset with a glut of requests for re-ups from their existing managers, in many cases at a much quicker pace than ever before.
The invasion of Ukraine has driven up the price of energy stakes, creating an opportunity for LPs to sell without having to accept a big discount.
Secondaries pricing has become uncertain, with inflation, supply chain disruptions, geopolitical turmoil and rising interest rates causing public market volatility since the beginning of the year.
The presence of a US public pension system as a lead investor is a reflection of the growing sophistication and desire on the part of some big US public plans to take more direct roles in investment management.
The move is significant for the Canadian pension giant, which until now had been unable to back such deals via its secondaries unit.
At least one LP reports intention to divest from NCH Capital’s Russia and Ukraine-focused agribusiness investments as quickly as possible.
Evelyn Zhang's appointment brings the headcount at the Canadian pension giant's secondaries team to 20.
The challenges of selling such a big offering are highlighted by growing uncertainty around secondaries pricing, weakening amid public market volatility, rising inflation and geopolitical shocks from Russia’s invasion of Ukraine.
There is a universe of potential deals in asset classes such as infrastructure not suited to typical secondaries funds, says Daniel Roddick, founder of Ely Place Partners.