Canadian Pension Seeks to Sell $1.5 Billion of Chinese PE Assets

Morrison Foerster Partner Xuanyi Liu was quoted in a recent Bloomberg article examining a Canadian pension fund’s efforts to reduce its exposure to China-focused private equity investments through the secondary market.

The article reports that Caisse de Dépôt et Placement du Québec is seeking to sell approximately US$1.5 billion of LP stakes in China private equity funds, reflecting broader shifts by global institutional investors amid geopolitical tensions and liquidity pressures. Xuanyi commented on market dynamics affecting these transactions, noting that global secondary investors remain disciplined when acquiring LP stakes in China-focused funds, with pricing discounts varying based on portfolio composition and market conditions. He also observed that increased IPO activity in Hong Kong could provide supportive liquidity signals for the secondary market.

This feature highlights evolving trends in Asia’s private equity secondary market and the considerations facing institutional investors as they rebalance portfolios.

Read the full article (subscription required).