AXA Private Equity, a division of AXA of France, has acquired $1.9bn portfolio of limited partnership interests in private equity funds from Bank of America.
According to AXA, this transaction involves a high quality, mature buyout funds portfolio. The portfolio is expected to strengthen AXA Private Equity’s position in the US, and adds to a series of private equity transactions the company has negotiated around the globe in April totaling more than $2.6bn.
Vincent Gombault, managing director fund of funds at AXA Private Equity, said: “This diversified portfolio, consisting of commitments in some of the best-managed funds, offers strong potential in terms of value creation for our investors. Over the last two years we have remained very cautious in our approach. Today we feel the market conditions are right to make acquisitions such as the one we’re announcing today.”
Jim Forbes, global principal investments executive at Bank of America, said: “The transaction allows Bank of America to reduce its private equity fund investments and unfunded commitments and manage its risk-weighted capital over the long-term, while also allowing the bank’s private equity team to focus on its core investment business.”