SINGAPORE, Singapore’s sovereign wealth fund, GIC Pte Ltd, is reportedly seeking to sell stakes in a portfolio of private equity (PE) funds valued at more than US$1 billion (RM4.2 billion), as it continues to actively rebalance its investments through the rapidly expanding secondary market.
According to people familiar with the matter, who requested anonymity due to the private nature of the discussions, GIC has initiated a process to divest holdings with a net asset value of at least US$1 billion. The proposed sale could include as many as 30 PE funds managed by global investment heavyweights such as Blackstone Inc, Apollo Global Management Inc, and TDR Capital.
Sources added that the funds earmarked for sale have an average vintage year of around 2016 and roughly US$100 million in assets each. Global investment advisory firm Evercore Inc has been appointed to advise GIC on the transaction. Representatives from GIC, Blackstone, Apollo, and TDR declined to comment, while Evercore did not immediately respond to media queries.
The move comes amid a sluggish dealmaking environment that has slowed private equity exits globally. Many institutional investors, including sovereign wealth funds and pension managers, have increasingly turned to the secondary market to manage their portfolios, unlock liquidity, and reinvest into newer opportunities.
According to Jefferies Financial Group Inc, global secondary transaction volume for private markets surged to a record US$103 billion in the first half of this year — a clear sign of growing investor appetite for liquidity and portfolio rebalancing amid prolonged exit delays.
For GIC, the potential divestment reflects a pragmatic approach to portfolio management rather than a strategic retreat from the asset class. Market observers said the sovereign wealth fund, one of the world’s most active and experienced private equity investors, routinely participates on both the buy and sell sides of the secondaries market.
Indeed, GIC was a major buyer of secondary interests in 2023, reportedly acquiring positions in 50 private equity funds with exposure to more than 500 underlying companies. The current sale, therefore, aligns with its ongoing efforts to optimise exposure across vintages, geographies, and managers.
However, sources cautioned that the structure of the transaction — including the number of funds, total value, and timing — remains fluid and may be revised depending on market conditions. The sale could also be postponed or cancelled entirely if GIC does not receive bids that meet its valuation expectations.
GIC, which manages Singapore’s foreign reserves alongside Temasek Holdings and the Monetary Authority of Singapore, does not publicly disclose its total assets under management. Data platform Global SWF estimates that the fund oversees approximately US$936 billion in assets. As of March 2024, its five-year annualised nominal return stood at 6.1%, unadjusted for inflation.
Analysts said the fund’s ongoing use of the secondary market underlines a growing trend among large institutional investors seeking flexibility and diversification amid an uncertain macroeconomic backdrop. “This is part of a broader shift toward dynamic portfolio management, where funds like GIC actively recycle capital to capture better risk-adjusted returns,” one investment banker familiar with sovereign funds noted.
