The Hong Kong Jockey Club is reportedly selling up to US$1 billion (HK$7.8 billion) in investments in Blackstone Group and other buyout firms, reducing its exposure to US assets amid escalating trade tensions since President Donald Trump took office, according to Bloomberg.
The report, citing sources, revealed that the Jockey Club is divesting its US assets held in TA Associates Management LP, Warburg Pincus, and Clayton Dubilier & Rice, among others.
It is reported that the Jockey Club is selling these assets through various instruments, one of which includes around US$700 million in assets.
Insiders noted that it is uncommon for the Jockey Club to offload such a large volume of assets in the secondary market.
Typically, investors in private equity funds turn to the secondary market to sell assets before the fund matures in order to access liquidity more quickly.
In exchange for providing this liquidity, buyers usually demand a discount.
The Jockey Club initiated the sale process in the first quarter, and some buyers have begun evaluating the transaction in April. Jefferies Financial Group will be leading the deal.
According to a report by Secondaries Investor, the Jockey Club is seeking to sell an investment portfolio worth US$500 million.
ANSON LUK
