Coller spins out credit fund interests from Ping An subsidiary

The secondaries specialist committed $580 million to the deal from its funds and co-investment vehicles, while an unnamed Asian institution contributed $100 million. Coller claims this is the world’s largest-ever private credit secondaries transaction.

The credit funds – managed by North American and European GPs – hold 400 positions in 250 companies across industries ranging from professional services to healthcare to telecommunications. Ping An Overseas Holdings (PAOH) retains management responsibility for the portfolio.

It is the third secondaries transaction undertaken by PAOH as it transitions into a manager of third-party money. The firm has spent years building up exposure to global alternatives as one of several platforms established to channel a portion of Ping An’s investments into overseas assets. At present, a minority of its assets under management come from external clients.

In 2019, PAOH tapped third-party investors for $758 million as it created a set of global infrastructure funds, with Ardian participating as the anchor LP. The portfolios were seeded with fund commitments and co-investments from the balance sheet.

This was followed last year by a partial spin-out of the private equity portfolio. Interests worth $875 million were moved off the balance sheet into a fund-of-funds and a co-investment vehicle backed by GIC, Montana Capital, and a third unnamed investor. PAOH retained a minority position and continues to manage the portfolio.

Nicholas Ng, a managing director for private equity at PAOH, told AVCJ at the time that using balance sheet assets to build a portfolio gives investors a sense of the firm’s investment logic and ability to access quality opportunities. This is intended to underpin future fundraising activity.

Regarding the latest transaction, Hoi Tung, chairman and CEO of PAOH, noted that credit funds have demonstrated the ability to generate sustainable income despite market turbulence, which has led to growing investor interest in credit strategies globally.

“By working with leading credit fund managers around the globe, we will continue to find attractive investment opportunities and deliver value to our partners and clients.,” he said in a statement.

Coller provides liquidity solutions to private markets investors globally, acquiring interests in private equity, private credit, and other private markets assets. The firm is currently deploying its eighth flagship fund, which closed in January with $9 billion in commitments, including co-investment vehicles.

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• Topics
• Secondaries
• Greater China
• Credit/Special Situations
• China
• Coller Capital
• Secondaries
• private debt
• Ping An