Key Takeaways
- • UC Investments divested approximately $1 billion in private equity portfolio interests to HarbourVest Partners, marking a significant secondary market transaction in a challenging environment for private assets.
- • The portfolio sold at a discount exceeding 10% and consisted primarily of software and technology-focused buyout fund interests, reflecting current market pressure on private equity valuations.
- • UC Investments manages roughly $190 billion across retirement, endowment, and cash portfolios, with private assets valued at approximately $39 billion as of mid-2025, of which private equity represents slightly more than half.
- • Campbell Lutyens served as advisor to UC Investments on the transaction, which began earlier in 2026 amid widening discounts in the secondaries market.
Summary
The University of California's investment office has completed a $1 billion sale of private equity interests to HarbourVest Partners, a leading secondaries specialist, underscoring continued activity in the secondary private equity market despite persistent headwinds affecting the asset class. According to Bloomberg, the transaction represents a meaningful deal for the secondaries sector, which has experienced widening discounts as renewed pressure weighs on private asset valuations.
UC Investments initiated the sale process earlier in 2026 and ultimately divested the portfolio at a discount exceeding 10%, according to people familiar with the matter. The sold interests focused on software and other technology-focused buyout funds, reflecting both the composition of UC's private equity holdings and selective investor demand in the secondary market for technology-exposed investments.
The transaction context reveals the scale of UC Investments' private asset exposure. The institution manages approximately $190 billion across retirement, endowment, and cash portfolios. As of mid-2025, UC Investments' private assets held a market value of roughly $39 billion, with private equity representing slightly more than half of that allocation. This divestment therefore represents a meaningful reduction in the institution's private equity footprint, potentially reflecting broader portfolio rebalancing or liquidity positioning.
Campbell Lutyens provided advisory services to UC Investments throughout the transaction, bringing specialized expertise in secondary market placements to structure the sale. The deal exemplifies the ongoing role secondaries specialists play in providing liquidity to large institutional investors navigating market dislocations and valuation uncertainty within private equity portfolios.
UC Investments initiated the sale process earlier in 2026 and ultimately divested the portfolio at a discount exceeding 10%, according to people familiar with the matter. The sold interests focused on software and other technology-focused buyout funds, reflecting both the composition of UC's private equity holdings and selective investor demand in the secondary market for technology-exposed investments.
The transaction context reveals the scale of UC Investments' private asset exposure. The institution manages approximately $190 billion across retirement, endowment, and cash portfolios. As of mid-2025, UC Investments' private assets held a market value of roughly $39 billion, with private equity representing slightly more than half of that allocation. This divestment therefore represents a meaningful reduction in the institution's private equity footprint, potentially reflecting broader portfolio rebalancing or liquidity positioning.
Campbell Lutyens provided advisory services to UC Investments throughout the transaction, bringing specialized expertise in secondary market placements to structure the sale. The deal exemplifies the ongoing role secondaries specialists play in providing liquidity to large institutional investors navigating market dislocations and valuation uncertainty within private equity portfolios.
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