France-based private investment house Ardian said Tuesday that its eighth-generation secondaries platform has attracted $19 billion in commitments from investors globally.
The programme, which includes $5 billion of co-investment interest, significantly exceeds the $14-billion raised by the predecessor vehicle in 2016, it said in a statement.
The platform has attracted 275 investors from nearly 40 countries across the Americas, Europe, Asia, and the Middle East. Investors comprise major pension funds, sovereign wealth funds, insurance companies, high-net-worth individuals and financial institutions.
There was particularly strong growth among Asian, Latin American and Middle Eastern investors, reflecting Ardian’s increasingly diversified and international client base, and strong relationships across the globe, the private investment house said.
Won Ha, Head of Ardian Singapore and Korea, said: “In recent years, we have seen increasing demand from Asian investors wanting exposure and access to the secondaries market. A significant portion of the $19 billion committed to our latest platform comes from investors in China, Hong Kong, Singapore, Japan and South Korea. At the same time, we also see more Asian sellers of private equity assets who are looking to access secondary private equity funds as they rebalance their portfolios and deploy capital to pursue new opportunities.”
The fundraise highlights how the secondaries market has matured to become an important source of liquidity for investors, including insurance companies, pension funds and family offices, as they look to re-balance private equity portfolios and seek yield opportunities for savers amid the global COVID-19 pandemic, it added.
Ardian’s fund of funds platform, which covers both primary and secondary fund of funds, now has $53 billion in assets under management, with exposure to more than 10,000 portfolio companies through 1,600 underlying funds, it said.
“In the current environment, the secondaries market has a crucial role to play in providing institutional investors with liquidity. It is a vital tool for pension funds and investors in how they allocate investments in private equity,” said Vincent Gombault, member of the executive committee and Head of Ardian Fund of Funds.
Ardian, which has $96 billion assets managed or advised in Europe, the Americas and Asia, operates across five investment pillars including fund of funds, direct funds, infrastructure, real estate and private debt.