HONG KONG, March 8 (Reuters) - Greenpark Capital has launched a $500 million global fund to invest in private equity secondary markets, with a $100 million cornerstone investment from International Financing Corp, the finance arm of the World Bank, according to sources familiar with the matter.
The fund will initially invest in Asia, and Greenpark has established a Hong Kong office, according to a statement.
Secondary buyers form a niche part of the private equity market, and Greenpark is among a number of global players to have recently arrived in Asia, attracted by the region’s maturing funds and by global market instability.
The firms buy stakes in private equity funds from investors seeking an exit, take over managing a company or a portfolio of companies held by a private equity firm, or team up with a private equity firm doing a leveraged buyout by offering cash to support a bid.
Greenpark has hired Chin Chin Teoh, a former Bank of America Merrill Lynch managing director and co-head of the bank’s Asia private equity group, as Head of Asia and to source deals, the statement said.
Greenpark initially plans to grow the fund through investments into mature markets in Asia, such as Japan, Taiwan, South Korea and Singapore, but plans to expand the fund to cover Latin America, the Middle East, Africa and Central and Eastern Europe.
Greenpark declined to comment on the fund details. IFC did not offer an immediate comment. The sources were not authorised to talk to the media.