“This is the transaction everybody is watching,” said Philip Yau, managing director of UBS Private Funds Group, at Buyouts West here in Beverly Hills, “and this trade is driven completely by the upcoming next couple of years of capital calls.”
Stanford’s capital calls haven’t happened yet, Yau says, and he estimates that the university needs to raise anywhere from $700 million to north of $1 billion, despite raising $1 billion in a bond offering last spring.
“These are big numbers, so they’ve set up a process (where) if you’re not a meaningful buyer it doesn’t make sense to participate. So secondary funds should be coming in — that’s probably what’s going to happen.
“The portfolio is a very good portfolio on the private equity side —