National Pension Reserve Fund considers sale of €716m private equity holdings

The National Pension Reserve Fund is believed to be seeking a buyer for its private equity investments, which had a value of €716 million at the end of September.

This is part of a move, mandated by the Government, for the fund to shift its focus towards being a strategic investment fund. This involves channelling resources towards productive investments in the Irish economy with matching commercial funding from private investors.

Swiss bank UBS is reported to be managing the sale. Initial bids were due in early December, it is understood.

A spokesman for the NPRF declined to comment on whether a sale process was in progress or to confirm if UBS was acting as an adviser to the State fund on this matter.

The spokesman said that in line with the NPRF’s change in mandate, the fund will transition its global portfolio of equities, bonds and alternative assets into the strategic investment fund over a number of years. This includes its global private equity investments, which will have to be realised through distributions or sold.

Transparent reporting
"As a matter of policy the NPRF does not comment in respect of transactions that may or may not be under consideration or in progress," a statement from the NPRF added.

“Completed transactions are either announced or reported as part of our regular transparent fund reporting. Any secondary market transactions would be subject to achieving an acceptable price.”

According to a recent report in the Wall Street Journal, groups that could potentially be interested in the portfolio include AXA SA spin-out Ardian, AlpInvest Partners, Coller Capital and Lexington Partners.

Pantheon was also reported as having expressed an interest, while at least one sovereign wealth fund is believed to have indicated an interest.

The bulk of the private equity portfolio is invested globally, with just 6 per cent in Irish funds as of December 2012. Irish fund managers include a number of venture firms such as Atlantic Bridge, Delta Partners and Fountain Healthcare Partners, according to the NPRF’s annual report.