LONDON: AXA Private Equity has raised a larger than expected $8 billion from investors, much of which it will use to take assets off the hands of banks cutting down their exposure in the face of rampant regulation.
Banks, in dire need to fortify their capital buffers, are in a rush to offload private equity assets they spent billions on in the heady days before the financial crisis, causing a flurry in so-called secondary sales.
"AXA Private Equity predicts a significant increase in activity in the secondary market over the next two years," the investment arm of French insurance group AXA, said in a statement yesterday.
The firm expects between $40 billion and $50 billion of bank assets to come up as a result.
AXA Private Equity had initially been after some $3.5 billion for its flagship secondaries fund but ended up raising more than double that amount at $7.1 billion. An additional $900 million will go towards its primary fund of funds, the group said.
Traditionally, private equity houses buy companies with large amounts of debt financing. They then aggressively cut costs, improve performance, and sell it on for a profit, usually through a stock market flotation.
If they find no outside buyers, they often flip assets between rivals. The model for AXA Private Equity's secondaries fund is slightly different in that it takes investment portfolios off the hands of banks.
Last year, it bought a $740 million portfolio of private equity holdings from Barclays and earlier acquired a bumper $1.7 billion portfolio from Citigroup.
Its fundraising success follows US Group Lexington Capital, which last year raised $7 billion, then the largest ever fund raised by a secondaries specialist. Rival Coller Capital is seeking to raise some $5 billion.
Deal-making in the private equity industry - once home to conspicuous multi-billion deals such as KKR's 11 billion pound ($17 billion) acquisition of Alliance Boots and Terra Firma's 4 billion pound purchase of EMI — has been tepid ever since the onset of the financial crisis.
In the absence of finding new deals, as bank lending for the debt-heavy leveraged buy-outs has dried up, many firms have spent more of their time buying mid-sized companies from rivals. May saw a flurry of such deals.
Silver Lake and Partners Group bought Swiss tax-free shopping business Global Blue from rival Equistone, while two private equity groups are in the hunt for Europe's biggest frozen food company Iglo Group, now owned by buy-out firm Permira.
The former head of Britain's biggest mobile phone company Everything Everywhere approached private equity groups six months ago about an 8 billion pound buyout, but found no takers, sources said this weekend.
Not only have buy-out firms lost their access to funding, it is also harder for them to sell companies to stock markets, which are virtually shut for new entrants because of the weak global economy and the euro zone debt crisis.
The owners of German chemical company Evonik, for instance, are set to scrap plans for what could have been Europe's biggest initial public offering in more than a year, people familiar with the matter told Reuters on Sunday.
FROM: REUTERS
AXA private equity raises $ 8 bn for bank asset buys
AXA private equity raises $ 8 bn for bank asset buys
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
