British Columbia Investment Management Corp. (BCI) sold over $1.37 billion (US$1 billion) worth of stakes in private equity funds to Ardian SAS, a French buyout firm. This transaction, first reported by Bloomberg News, was part of BCI's strategy to liquidate portions of its holdings in the secondaries market, aiming to generate liquidity for new investments.

The details of the specific holdings sold were not disclosed by either Ardian or BCI. Selling in the secondaries market allows BCI, which manages a $233-billion pension fund, to rebalance its private equity portfolio. This helps maintain proportionality with other asset classes and reallocates capital for new ventures.

The secondaries market, where fund investors trade stakes in illiquid funds before maturity, usually at a discount, has become crucial for liquidity, especially as high interest rates increase borrowing costs and depress company valuations. This market is increasingly used by institutional investors to free up capital amidst slow private equity deal flows.

As of March 31, 2023, BCI's private equity assets were valued at $28.3 billion, representing about 13% of its total assets, up from 11.8% the previous year. Ardian, which recently opened an office in Montreal, remains a significant player in the secondaries market, focusing on expanding its investments in Canada, especially in the renewable energy sector.