Kensington Capital Partners has suspended redemptions from its flagship private equity fund for at least 90 days, as strained liquidity conditions and muted deal activity weigh on performance, according to a report by Bloomberg.
The Toronto-based manager, majority-owned by AGF Management Ltd, said the move was aimed at avoiding forced asset sales at depressed valuations, which could erode long-term returns. The CAD1.45 billion ($1bn) vehicle, which invests directly and through other PE funds, has posted weak performance in recent years, slipping 1.5% year-to-date after marginal gains in 2023 and 2022.
The redemption halt covers all pending and new withdrawal requests. Kensington said it will cut management fees by 10bps in response. Portfolio holdings include Blue Ant Media, Borrowell, and Hopper, alongside commitments to funds managed by Torquest Partners and Birch Hill Equity Partners.
While initially set for 90 days, the freeze may be extended under fund terms if market conditions fail to improve. Kensington has outlined measures including asset sales, reduced leverage and portfolio support to preserve long-term exit value.
