AXA spends $120m on Deutsche funds

The secondary arm of AXA Private Equity has acquired 21 partially funded limited partnership interests from Deutsche Bank.

AXA Private Equity, the international diversified private equity investment arm of the AXA insurance group, has agreed to acquire 21 limited partnership interests in private equity funds from Deutsche Bank.

According to a press release, AXA is paying $120 million (€93 million) for the assets, which have a combined commitment value of $382 million. Less than 50 percent of this amount has been drawn down, AXA said. The portfolio is made up of US private equity funds, most of which invest in buyouts.

AXA is funding the purchase from the $250 million Axa Private Equity early secondary fund of funds it closed in March of this year. In addition to the Deutsche portfolio, the fund has completed another eight investments already.

Asked whether the group was currently in the process of raising a new vehicle dedicated to secondaries, a Paris-based spokesperson declined to comment.

For Deutsche Bank, the disposal is yet another step in its ongoing departure from the private equity asset class. Since 2002, the bank has been selling off non-core assets to free up capital for use elsewhere. The strategy has already produced the disposal of several parts of the bank’s private equity and real estate portfolio, including the sale of its late stage private equity business, now trading under as MidOcean Partners, to an investor consortium led by management.

AXA Private Equity has offices in Paris, London, Frankfurt and New York and has responsibility for assets worth €5 billion that are invested across a broad range of different private equity strategies.