EXCLUSIVE: Evercore wins secondary mandate to sell GE’s $1bn portfolio

Evercore’s fledgling private equity secondaries advisory group, in one of its first major mandates since forming last summer, will run the sale of a portfolio of about $1 billion worth of private equity fund interests managed by a division of GE Capital, according to four people with knowledge of the situation.

The portfolio contains about 100 funds, according to one of the people. Another person said the portfolio contains a “mixed bag” of funds in terms of quality, including some older, “tail end” type vehicles.

Evercore and GE Capital did not return calls for comment.

The funds are managed by GE Capital’s Americas Equity Finance unit. The group invests in growth companies, buyouts and special situations, co-invests in sponsor-led deals and makes fund commitments, according to the company’s website.

Bloomberg reported on the potential sale last month. Sources confirmed Bloomberg’s reporting that the secondary sale is being driven by the Volcker Rule portion of the Dodd-Frank financial reform law. Under the rule, banks are barred from investing more than 3 percent of their Tier 1 capital in private equity and can’t own more than 3 percent of a fund. Bloomberg reported that GE was interviewing several firms to help sell the portfolio.

Evercore is an up-and-comer in private equity secondary advisory, having formed its team over the summer. However, it brought on one of the biggest names in the business, Nigel Dawn, who ran UBS’ high-profile group for 16 years.

Dawn was joined at Evercore last year by his former colleague Nicolas Lanel, who is heading up the team’s European secondary advisory efforts.

Evercore competes for private equity secondary mandates with other well-established shops like Cogent Partners, UBS and Campbell Lutyens, as well as newer players in the market like Park Hill Group and Setter Capital.

Photo courtesy of Shutterstock.