Unigestion has sold more fund positions than it bought over the past year as it aims to lock in high secondaries market prices.
The Geneva-headquartered investment manager has sold two portfolios of tail-end stakes worth more than €150 million, one of which is in the process of closing, according to private equity partner Paul Newsome.
The firm opted to bundle stakes together rather than sell small portfolios or individual lines, given the higher prices on offer at the larger end of the market.
“It was a good chance to sell some of our older, more mature portfolios – make them big enough to be attractive to the large guys and take advantage of it,” Newsome told Secondaries Investor.
He declined to give the precise amount sold or identify the buyer, in accordance with the conditions of a purchase and sale agreement.
The stakes are mainly from the firm’s older primary funds and evergreen mandates. They are primarily of 2008-, 2009- and 2010-vintage, along with a selection of 2011- and 2012-vintage stakes seen as having limited upside potential.
“On the secondaries side we’re a net seller, that’s for sure. We do about €100 million to €200 million per year of secondaries [buying] and have sold more than that in the last 12 months.”
Unigestion is investing Secondary Opportunity Fund IV, which held a €300 million final close in December, and the €300 million Euro Choice Secondary II, which it gained through the acquisition of Swiss peer Akina Partners in 2017.
Clwyd Pension Fund, North East Scotland Pension Fund and Cumbria Local Government Pension Scheme are among the investors in its secondaries funds, according to Secondaries Investor data.
Unigestion has $25.9 billion in assets under management across private equity funds of funds, secondaries and directs vehicles.