Ping An gives third-party investors exposure to PE portfolio

The firm has spun out partial interests in North America and Europe-based buyout funds into a fund-of-funds called Ping An Global Equity Selection Fund. It will remain an LP in each of the funds involved. The transaction – which gives third-party investors exposure to the Ping An PE portfolio for the first time – is not unlike those executed by Temasek Holdings via Azalea Asset Management.

The Selection Fund is accompanied by Ping An Global Equity Fund, a co-investment vehicle that will harvest opportunities generated by Ping An’s network of GP relationships.

Singapore’s GIC Private and Switzerland-based Montana Capital Partners are the anchor investors, supported by other global institutional players. Montana, which has more than EUR2 billion ($2.4 billion) in assets under management, primarily focuses on small and mid-sized secondary transactions. It co-led and structured the secondary deal.

Hoi Tung, chairman and CEO of China Ping An Insurance Overseas Holdings (PAOH), said in a statement that the fundraise is an important milestone in the company’s “strategic transition from an in-house investment platform into an asset management franchise serving third-party investors.”

Yong Cheen Choo, CIO for private equity at GIC added: “GIC consistently seeks opportunities to prudently deploy capital at attractive risk-adjusted returns, even during times of heightened volatility. We believe the Ping An Funds, and the portfolio of well-regarded managers they have invested in, created a compelling opportunity for GIC to do so.”

PAOH is Ping An’s main overseas platform for direct investments and asset management. Established in 1996, it offers a range of investment products, asset management, and investment consulting services. The product range includes capital markets investments as well as alternatives. PAOH works with other Ping An subsidiaries as well as institutional and corporate clients.

Temasek established Azalea with a remit to broaden investor access to private markets. It initially did this through the Astrea series, a set of debt-based structured secondary transactions that offer exposure to existing funds in the Temasek portfolio. Last year, Azalea added the Altrium fund-of-funds program, which gives investors direct equity exposure to funds.

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• Topics
• Greater China
• LPs
• Secondaries
• China
• Ping An
• Secondaries
• GIC Private