Ardian is in talks to purchase more than $2 billion in private equity fund stakes from Abu Dhabi Investment Authority, according to two people with knowledge of the deal.
ADIA, which invests on behalf of the government of Abu Dhabi, hired Cogent Partners to advise on selling mostly buyout fund stakes, people familiar with the matter said in July. Ardian made a bid on the portfolio before ADIA could start a sales process, said the people, who asked not to be named because the information is private.
Prices in the secondary market are at a post-crisis high as firms such as Ardian are seeking to invest billions of dollars. The average high bid for holdings of buyout funds was 100% of net asset value in the first half of the year, according to a July pricing report by Cogent.
ADIA and Ardian spokesmen declined to comment.
Ardian announced in April it raised $9 billion, including co-investment capital, to make secondary investments. Earlier this year, the Paris-based firm beat out other bidders by offering to pay more than face value for buyout fund stakes from General Electric Co., said four people familiar that deal in March.
ADIA, based in the United Arab Emirates capital, is among institutional investors that have turned to the secondary market to rebalance holdings and pare stakes in illiquid private equity funds. The authority can invest as much as 8% of its portfolio in private equity, according to ADIA's 2013 annual review. It is estimated to have $773 billion in assets by the Sovereign Wealth Fund Institute.
