ADIA postpones $2 billion PE fund sell-off

The Abu Dhabi Investment Authority (ADIA) has postponed a planned sale of its private equity book due to the ongoing disruption from the coronavirus pandemic. 

It was first reported in January that the ADIA was seeking buyers for its stakes in private equity funds estimated to be worth $2 billion.

However, according to Bloomberg, the sale has been put back amid the current market turmoil and the difficulty in agreeing on fair valuations for its assets. It is hoped that the sales process can be restarted in the second half of the year.

The proposed sale reflected the current trend among large investors to pivot away from multiple funds in favour of direct investments where there is less administration and cost involved. However, the secondary market for buying and selling stakes in buyout funds has been hit hard by the economic fallout from the pandemic, leading the likes of ADIA to rethink or postpone their plans.

ADIA is estimated to have around $580 billion of assets under management.

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