China Investment Corporation (CIC), the country’s $1.3tn sovereign wealth fund, is looking to offload around $1bn worth of US-based private equity fund stakes on the secondary market, according to a report by Reuters citing unnamed sources familiar with the matter.
The assets for sale are held across multiple funds managed by eight general partners, including Blackstone and Carlyle, and come from positions CIC originally took between 2016 and 2017, according to the sources. The sovereign fund has appointed Evercore to advise on the transaction, which is expected to close by the end of June, though timing and valuation remain subject to market appetite and pricing.
The planned divestiture comes amid heightened US-China tensions, which have spilled into the financial sector, with both governments stepping up scrutiny of cross-border investments. The Financial Times recently reported that several Chinese state-backed investors, including CIC, were pausing new commitments to US private equity amid the deteriorating trade relationship – a move CIC has not publicly addressed.
CIC’s private equity portfolio, part of its broader allocation to alternative assets, represents a major pillar of the fund’s international strategy. The fund has historically been an active LP in top-tier US PE firms and previously partnered with Goldman Sachs on a $2.5bn joint fund targeting US-China opportunities.
According to CIC’s latest annual report, the fund had $1.33tn in AUM as of year-end 2023, with 64% of its assets managed externally. US assets remain a core part of its exposure, with 60% of its public equities allocated to the US, as of December 2023.
Market sources say sovereign wealth funds, secondaries-focused asset managers, and family offices are circling the offering, with Singapore’s GIC reportedly among interested buyers. The portfolio may be sold in tranches or as a whole, depending on pricing negotiations.
