Goldman Sachs and Ardian acquire $1bn CIC US PE stake in secondary sale

Goldman Sachs Asset Management and Ardian have purchased a $1bn portfolio of US private equity interests from China Investment Corp. (CIC), in a secondary market transaction involving the sovereign wealth fund’s efforts to reduce exposure to illiquid assets, according to a report by Bloomberg.

The deal, which was completed late last year, saw Ardian acquire its portion of the assets at a double-digit discount, while Goldman Sachs secured its allocation at a lower single-digit discount, according to people familiar with the matter.

CIC, China’s sovereign wealth fund, had initially explored selling a broader set of fund positions last year, engaging with managers including Carlyle Group, KKR and TPG. However, the process was paused before later being revived, the sources said. CIC and the buyers declined to comment.

The transaction reflects a broader trend among global institutional investors, including endowments such as Harvard University, which have been gradually rebalancing portfolios away from illiquid dollar-denominated assets amid concerns about valuation cycles and liquidity in private markets.

Secondary markets have also become an increasingly important tool for Asian investors seeking to manage exposure, rebalance portfolios or generate liquidity from mature fund positions.

Once a high-profile investor in global financial institutions such as Blackstone and Morgan Stanley, CIC has become a more subdued presence in international deal-making in recent years, with a greater share of its portfolio now externally managed.

According to its latest disclosures, nearly half of CIC’s assets are allocated to alternative investments, while more than 60% of its global portfolio is managed by external managers.

Ardian, which oversees around $200bn in assets, remains one of the most active players in the secondaries market and recently raised a record $30bn fund dedicated to such transactions, further cementing its position as a leading buyer of private market stakes.