Pantheon, the private-equity firm owned by Affiliated Managers Group Inc. (AMG:US), won the bidding for about $500 million in buyout fund stakes that are being sold by the Teachers’ Retirement System of the State of Illinois, said two people with knowledge of the matter.
The stakes are mostly in U.S. large-capitalization funds, including some managed by TPG Capital, Warburg Pincus LLC and Elevation Partners, said the people, asking not to be identified because the information is private. The face value of $500 million includes unfunded commitments, the people said.
Pantheon, based in London, is among a growing number of investors that buy secondary stakes in buyout funds as pension plans such as Illinois Teachers’ seek to cut down on the number of managers they use and their investments in certain strategies. Recent sellers have included the Florida State Board of Administration, the State of Wisconsin Investment Board, California Public Employees’ Retirement System and New York City’s police, fire civil-employee pension plans.
Park Hill Group, the placement-agent unit of New York-based Blackstone Group LP, is managing the sales process. The Illinois plan said in May that it hired Park Hill, Cogent Partners and UBS AG to advise on secondary deals in its private equity and real estate portfolios.
Pantheon has $25.4 billion under management, according to its website, money it invests on behalf of more than 400 institutions in private-equity funds, co-investments alongside managers, secondary transactions and infrastructure programs. AMG, the Beverly, Massachusetts-based company that owns stakes in more than two dozen money managers, acquired the firm in 2010.
Dave Urbanek, a spokesman for Illinois Teachers’, declined to comment, as did Carsten Huwendiek, a spokesman for Pantheon.
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