AXA Private Equity has acquired a $1.9 billion portfolio of limited partnership interests in mature buyouts funds from Bank of America.
AXA Private Equity, the leading European diversified private equity firm, announces the acquisition of a US$1.9 billion portfolio of limited partnership interests in private equity funds from Bank of America (NYSE: BAC). This represents one of the largest secondary private equity transactions in history and asserts AXA Private Equity’s world leadership in secondary fund-of-funds. The portfolio substantially strengthens AXA Private Equity’s position in the United States, where it was already a leader in secondary fund-of-funds, and adds to a series of private equity transactions the company has negotiated around the globe in April totalling more than US$2.6 billion.
This transaction involves a high quality, mature buyout funds portfolio. Exact terms have not been disclosed.
Vincent Gombault, Managing Director Fund of Funds at AXA Private Equity, said: “We are very pleased to have concluded this acquisition. This diversified portfolio, consisting of commitments in some of the best-managed funds, offers strong potential in terms of value creation for our investors. Over the last two years we have remained very cautious in our approach. Today we feel the market conditions are right to make acquisitions such as the one we’re announcing today.”
Jim Forbes, Global Principal Investments executive at Bank of America, said, “The transaction allows Bank of America to reduce its private equity fund investments and unfunded commitments and manage its risk-weighted capital over the long-term, while also allowing the bank’s private equity team to focus on its core investment business.”
The transaction is in line with the strategy of AXA Private Equity secondary funds, which consists of offering liquidity to institutions looking to monetize their private equity investments.
Earlier this week, AXA Private Equity completed a transaction with French bank Natixis (KN.FR) to acquire private equity holdings valued at approximately €534 million (US$718 million).
Mr. Gombault added: “The series of transactions we are making around the world at this time is evidence of our view of current market conditions as well as our ability to manage the largest most complex situations and be an exceptional partner for sellers. Our priority is to acquire good quality assets, not to drive deeper discounts. Our investment approach is characterized by cautious discipline, and assigns great value to long-term relationships. The deals we have completed this week serve as outstanding examples of those commitments.”
ABOUT AXA PRIVATE EQUITY
AXA Private Equity is a leading private equity firm with US$25 billion in managed assets and a global reach extending across Europe, North America and Asia. The firm offers investors the full spectrum of private equity services for every market segment: direct funds, infrastructure financing, mid cap and small cap buyouts, venture capital, co-investments, fund of funds as well as mezzanine financing.
With offices in Paris, Frankfurt, London, New York, Singapore, Milan, Zurich and Vienna, AXA Private Equity supports the development and long-term growth of its portfolio companies with sustainable growth strategies and by granting them access to the AXA international network. AXA Private Equity has earned the trust of its investors by regularly supplying them with transparent performance data on its funds and portfolio companies.