The Hong Kong Jockey Club is set to offload up to $1bn worth of stakes in private equity funds managed by Blackstone, Warburg Pincus, and other leading US buyout firms, as part of a broader move to reduce exposure to American assets amid ongoing geopolitical tensions, according to a report by Bloomberg.
Sources familiar with the matter have said the asset owner is actively marketing positions in funds managed by TA Associates, Clayton Dubilier & Rice (CD&R), and others.
The sale, largely comprising US-focused investments, is being facilitated by Jefferies Financial Group and includes a vehicle holding approximately $700m in assets. Some buyers began evaluating the portfolio as early as April.
The move marks a rare secondary market sale of this scale for the Jockey Club, which traditionally maintains a long-term investment horizon. The decision aligns with a growing trend among Asian institutional investors and family offices to recalibrate US allocations in light of rising macroeconomic and political uncertainty, particularly in the context of US-China relations.
The sale process was initiated in Q1, and while exact pricing remains undisclosed, secondary market transactions typically involve discounts to net asset value, reflecting the illiquidity and extended holding periods of private equity interests.
The Jockey Club, a nonprofit institution and one of Hong Kong’s most prominent asset allocators, manages substantial reserves generated from its monopoly on horse racing, betting, and lottery operations. The organisation reported customer betting turnover of HKD305bn and segment revenue of HKD43bn, according to its latest disclosures.
The transaction follows similar activity by China Investment Corporation earlier this year, which explored a $1bn portfolio sale involving US private equity stakes before ultimately pausing the process. Multiple Asia-based family offices have also reported scaling back US allocations, citing volatility in public markets and geopolitical headwinds.
