Irish Pension Seeks Single Buyer for Private-Equity Portfolio

Ireland's National Pensions Reserve Fund is seeking a single buyer for slightly more than $1 billion in global private-equity assets as the pension fund shifts its focus toward domestic investments, said several people with knowledge of the matter.

The stake sale, which includes interests in funds managed TPG Capital, CVC Capital Partners and Providence Equity Partners, among others, is expected to wrap up by year end, said the people, who added that there is a chance it could spill into 2014. The sale doesn't include positions in Irish-focused funds.

Swiss bank UBS AG (UBS) is managing the sale, said the people, who added initial bids for the assets were due this week.

A spokesman for the pension system declined to comment on the deal but did say any secondary-market sales undertaken by NPRF "would be subject to an acceptable price being achieved."

The portfolio's size and the pension fund's desire for a single buyer would likely preclude all but the largest secondary buyers from bidding. Firms that could potentially be interested in the portfolio include AXA SA spin-out Ardian, AlpInvest Partners, Coller Capital and Lexington Partners, said the people.

One person familiar with the matter said Pantheon also expressed interest in the assets, while two others said the sale attracted the interest of at least one sovereign wealth fund.

The sale reflects Ireland's efforts to restructure NPRF's 6.4 billion euro discretionary portfolio to focus on commercial investments in Ireland, as well as to support the country's economic growth and job-creation efforts.

Prior to the current deal, the pension plan had been selling down smaller pieces of its private-equity portfolio. Last year, NPRF sold EUR148 million worth of stakes in seven funds, according to its 2012 annual report.

The bulk of NPRF's private-equity portfolio is invested globally, with just 6% residing 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 annual report.

Meanwhile, its global private-equity portfolio includes funds managed by Charterhouse Capital Partners, Madison Dearborn Partners, New Mountain Capital and Clayton Dubilier & Rice, among others.

NPRF began investing in private equity in 2005, and as of Sept. 30, the asset class took up 11% of the fund's discretionary portfolio, a EUR6.6 billion pool of investments.

NPRF was formed in 2001 to cover the costs of Ireland's future social welfare and public service liabilities. Besides managing the discretionary portfolio, NPRF manages a directed portfolio, which invested EUR20.7 billion into the bailout of Allied Irish Banks PLC and Bank of Ireland Group in 2009 following the global financial crisis.

(Dow Jones LBO Wire provides coverage of private equity deals, funds and other related news. Go to http://pevc.dowjones.com)

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