La Caisse de dépôt et placement du Québec is seeking to sell about $1.5bn of China-focused private equity fund stakes, says Bloomberg.

People familiar with the matter said the portfolio includes positions in funds managed by HSG, Warburg Pincus, and Boyu Capital, with Greenhill acting as adviser. The sale follows months of preparatory work to gauge investor interest.

With C$496bn of assets, La Caisse has been recalibrating its China exposure amid geopolitical tensions and slower growth in the world’s second-largest economy. The pension closed its Shanghai office in 2023 and now runs Asia investments from Singapore.

China-focused LP stakes are trading at heavy discounts, which can reach up to 30%, reflecting muted exit activity and cautious secondary buyer sentiment. 

The sale underlines how large institutional investors are increasingly using secondaries to generate liquidity and rebalance regional risk.

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