Coller raises $5.5 bln to buy private equity assets

Thu Jul 19, 2012 2:46pm IST

Stocks

   

* Coller Capital raises $5.5 billion fund, beats targets

* Coller buys private equity stakes from banks, investors

* Has committed $800 million, sees full investment pipeline

LONDON, July 19 (Reuters) - Coller Capital has raised $5.5 billion to buy private equity investments from banks and other investors, tapping into a growing niche that has seen some of the biggest pools of capital raised by buyout firms over the last year.

As traditional private equity groups have found new capital hard to raise and deals tough to find since the credit crisis, firms like Coller and rival AXA Private Equity have seen their market boom as private equity investors, including banks, pension funds and endowments, sell assets to free up capital.

Coller said it raised $5.5 billion on Thursday, 10 percent more than it initially targeted for its sixth so-called secondaries fund.

"We have already committed $800 million of the new fund's capital, and we have a very full pipeline of potential investments," said chief investment officer and founder Jeremy Coller.

Coller was one of the first to specialise in buying positions in private equity funds from investors, as well as acquiring portfolios of stakes in private companies from their original backers.

More recently banks, selling off their private equity interests in preparation for more stringent regulation, have provided a rich seam of investment, and have helped a niche part of the private equity industry grow.

AXA Private Equity, the private equity arm of the French insurer, raised $7.1 billion for a new fund earlier this year, more than double its initial target, and U.S. group Lexington raised $7 billion last year.

AXA private equity expects between $40 billion and $50 billion of banks' private equity holdings to come up for sale over the next couple of years, as financial institutions sell off a wide range of holdings to free up capital.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage