The private equity arm of European insurance giant AXA is seeking investor approval to raise an additional $1bn for its latest fund, as secondary players poise for imminent regulation that will force banks to offload existing stakes in private equity funds.
According to Bloomberg, the firm is looking to lift the hard cap for its AXA Secondary Fund V vehicle from $4bn to $5bn, in order to take advantage of the current slew of secondary opportunities in the market.
The firm began fundraising for its latest fund in 2010 with a target of $3.5bn. It has raised $3bn to date and invested $1.7bn of that.
Secondary transactions are expected to surge this year, as banks are forced to bolster capital reserves and shed riskier assets to meet global regulatory requirements over the next few years.
Secondary deals were valued at around $25bn last year, a level that is likely to be sustained this year, according to a recent report by market intermediary Cogent Partners.
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