Report: AXA to raise new secondary fund

AXA Private Equity, which is reportedly in talks to acquire the private equity funds portfolio of Credit Agricole for €600m, is preparing to raise a new secondary fund.

AXA Private Equity (AXA PE), the private equity business of French insurance group AXA, is preparing to launch a new fundraising campaign to raise a new secondary fund.

The new fund, according to a report from Private Equity Analyst, will have a target of $800 million (€664 million) to invest in limited partner interests in mature funds. Having recently closed a €250 million early stage secondary fund of funds, which invests in private equity funds post-closing but before 50 percent of commitments are drawn down, the new fund will target interests in buyout and venture funds that are more than 50 percent drawn down.

No one at AXA PE was available for comment on the new fundraising

If the new Axa fund reaches its reported target, it will be significantly larger than the previous mature secondaries funds Axa has raised. In December 2001, the firm raised a $480 million fund. Prior to that Axa raised a $220 million fund in 1998.

AXA PE manages over €4.5 billion of private equity investments and deploys over €700 million annually in the asset class.

In related news, market sources expect AXA PE to successfully conclude talks with French bank Credit Agricole to purchase its private equity funds portfolio for a reported €600 million. Since its merger with Credit Lyonnais last year, Credit Agricole has been seeking to reorganise its €2.5 billion private equity portfolio. Earlier this year, the bank sold a €98 million portfolio of assets to French buyout firm Eurazeo, in which it now holds a 16 percent stake.