China Investment Corp. is close to completing the sale of about $1bn in US private equity stakes, marking one of the largest sovereign-wealth disposals in the secondary market this year, according to sources cited by Bloomberg.

Paris-based Ardian is said to be among the final bidders for the portfolio, which includes positions in funds managed by Carlyle, Hellman & Friedman, and Welsh Carson Anderson & Stowe. CIC relaunched the process after pausing an earlier attempt to sell similar stakes in vehicles run by Carlyle, KKR, and TPG.

The $1.3tn sovereign wealth fund is cutting its exposure to US private markets as part of a wider effort to diversify away from illiquid dollar-denominated assets. Other global investors, including Harvard University, are pursuing similar moves as distributions remain muted and secondary-market pricing improves.

CIC, once known for its headline-grabbing bets on Blackstone and Morgan Stanley, has taken a more cautious stance in recent years. Almost 48% of its assets were invested in alternatives at the end of 2023, with nearly two-thirds of its global portfolio run by external managers.

The sovereign fund’s sale comes amid a broader wave of secondary activity. Singapore’s GIC has been exploring a $1bn disposal of private equity fund stakes in Blackstone, Apollo, and TDR Capital. The Hong Kong Jockey Club also sold $1bn of assets at a discount to Dawson Partners.

Ardian, one of the world’s largest buyers of LP stakes with $192bn under management, raised a record $30bn secondary fund earlier this year, strengthening its capacity to acquire large portfolios. LP-led deals accounted for $54bn of the $102bn global secondary-market volume in the first half of the year, according to Evercore.

CIC, Ardian, and the relevant private equity firms declined to comment.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.