Collateralized Fund Obligation - Private Equity CFOs

Private Equity CFOs

Since the advent of CFOs (ca. 2002), there have been only a handful of publicly announced private equity securitization transactions. Typically, owners of private equity assets will securitize a portfolio of funds as a way of generating liquidity without an outright secondary sale of the funds.

• In 2006 Temasek Holdings completed $810 million securitization of a portfolio of 46 private equity funds.

• SVG Capital has executed three CFO securitizations as part of its "Diamond" program, SVG Diamond (2004), SVG Diamond II (2006) and SVG Diamond III (2007).

• Alongside its CLO program, Mizuho IM has launched its first CFO called Vintage I in 2007, a EUR 500 million fund investing in global buyout funds. The investment has proved extremely successful so far. Now under the ownership of 3i Group, the Vintage team closed a second USD 400 million Vintage II.

• Tenzing (2004) — Securitization of private equity fund assets by Invesco

• Pine Street (2003) — Securitization of private equity fund assets by AIG

• Silver Leaf (2003) — Securitization of private equity fund assets by Deutsche Bank