Tuesday, December 02, 2008

Universities as sellers

Bloomberg.com: Exclusive:
"A push by the richest U.S. universities to unload their stakes in private-equity funds is flooding the market, driving down prices for the world’s best- known buyout firms.

Investors led by Harvard University, which manages the largest U.S. endowment at $36.9 billion, may increase so-called secondary sales of private-equity funds to more than $100 billion during the next year, overwhelming available pools of capital. Interests in funds managed by KKR & Co., Madison Dearborn LLC and Terra Firma Capital Partners Ltd. all are being offered at discounts of at least 50 percent, according to people familiar with the sales."

in the same article about UVA.

"The University of Virginia in Charlottesville said in a statement posted on its Web site that it may sell some of the $1.6 billion it has invested in buyout funds, noting that proceeds “may be far below face value.”"

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