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Temasek buys in British Columbia sale

The Canadian investor had brought a portfolio of private equity fund stakes to market in the first half of this year.

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Temasek Holdings, Singapore’s state-owned investment company, has acquired stakes in buyout funds from the manager of Canada’s largest institutional investors.

The firm picked up four entire stakes from British Columbia Investment Management Corporation in funds managed by Nordics-focused private equity firm IK Investment Partners, UK regulatory filings show.

The stakes were in Industri Kapital 2004, Industri Kapital 2007 and two interests from the 2013-vintage IK VII.

Pricing details were not disclosed.

bcIMC came to market in the first half of this year wanting to offload a portfolio of stakes in a process advised by Greenhill Cogent, three sources told Secondaries Investor. The size of the portfolio was between $600 million and $800 million, two of the sources said.

UK regulatory filings also show Lexington Partners picked up stakes in BC Partners‘ BC European Capital VII and BC European Capital VIII from bcIMC. This deal occurred separate to the Canadian pension’s portfolio sale, according to a source familiar with the transaction.

The €825 million Industri Kapital 2004 held its final close in February 2005 and is fully realised, according to IK Investment’s website. Industri Kapital 2007, which raised €1.7 billion, holds one remaining asset, Dutch hydraulics firm DGI.

IK VII closed in October 2013 on €1.4 billion. Companies in the fund’s portfolio include Evaq, which manufactures environmentally friendly waste water systems and dough products maker Cérélia.

According to data from Standard Life Private Equity Trust, the IK funds had achieved respective net multiples of 2.4x, 1.5x and 1.3x as of 31 March.

bcIMC sold the stakes that were held in bcIMC Private Placement (2004) Investment Corporation, bcIMC (WCBAF) Private Placement Investment Corporation, bcIMC Private Placement (2007) Investment Corporation and bcIMC Private Placement (2011 Parallel) Investment Corporation vehicles, the filings revealed.

bcIMC is a Canadian investment fund manager which has around C$135 billion ($108 billion; €92 billion) in assets under management, around 27 percent of which is allocated to alternatives, according to PEI data.

bcIMC, Temasek and Greenhill declined to comment.

– Adam Le contributed to this report.