MetLife closes $1.2bn Fund III seeded with $754m portfolio
By IAN Editorial Desk – MetLife Investment Management today closed around $1.
MetLife Investment Management today closed around $1.2bn of commitments to MetLife Investment Private Equity Partners Fund III through a managed secondary sale transaction, marking the third fund in its private equity investment platform for institutional investors. The deal was announced on 3 August from Whippany, New Jersey.
The fund bought a portfolio of around $754m of private equity, venture capital and equity co-investment interests from MetLife affiliates. Those assets carried funded and unfunded commitments totalling $966m, so the transaction transferred both existing exposure and follow-on funding obligations to the new vehicle.
MetLife Investment Private Equity Partners Fund III acquired nearly 80 private equity, venture capital and equity co-investments diversified globally. That gives the fund immediate scale across strategies and geographies, rather than requiring it to build a portfolio asset by asset after closing.
The structure matters because MetLife Investment Management executed it as a managed secondary sale, allowing it to seed the vehicle with an existing portfolio sourced from affiliated sellers rather than raise capital first and deploy it over time. MetLife Investment Management is the institutional asset management business of MetLife, Inc.
Brian Funk, president of MetLife Investment Management, said the closing marked another milestone for the manager's private equity investment platform.
The announcement also stopped short of disclosing an explicit discount or premium to net asset value, and it did not set out the valuation approach or any post-transaction net asset value adjustment method. As released, the investment detail was limited to the asset mix and the commitment totals.
MetLife Investment Management has separately said its insurance-focused solutions are designed with multiple insurer capital regimes in mind, including NAIC, Solvency II, Bermuda Monetary Authority and APAC risk-based capital frameworks. That points to a broader insurance client base for strategies housed on the platform, although the MIPEP III announcement itself did not tie the fund to any specific solvency treatment.
Sources: news.google.com · metlife.com
