Buyout funds use minority stake sales to show off best assets: Reuters

Private equity funds are increasingly selling minority stakes in investments to pension and sovereign wealth funds as they strive to deliver returns for investors while holding onto prized assets in a hotly competitive market for deals, Reuters reported. Typically, private equity funds hold an investment for several years and then sell most or all of it to another private equity house, a corporate buyer, or list it on the stock market. Now, a growing number are opting just to sell a small part of an investment, enabling them to book some profit without being left with a lot of capital to redeploy. Singaporean sovereign wealth funds and Canadian pension funds have been some of the biggest buyers of minority stakes from private equity firms.

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