The Hong Kong Jockey Club has completed the sale of about $1 billion in private fund assets to Toronto-based investment firm Dawson Partners, marking one of the largest secondary transactions by an asset allocator in Asia. The assets, which included investments in funds managed by Blackstone and several other buyout firms, were reportedly sold at a single-digit discount to their net asset value, according to people familiar with the deal. Jefferies Financial Group acted as advisor on the transaction.
The Jockey Club, Hong Kong’s biggest taxpayer and exclusive holder of government-issued licenses for horse racing and football wagering, began exploring the sale earlier this year. The move reflects a growing trend among Asian limited partners — including pension funds, sovereign wealth funds, and family offices — to pursue liquidity through the secondary market. Such deals allow investors to recover capital before fund maturities, though typically at discounted prices.
This activity comes as investors who made commitments during private equity’s fundraising boom four years ago now face tighter liquidity conditions. Market participants say buyers of secondary fund interests often seek discounts depending on asset type, with private credit and infrastructure secondaries trading 5–10% below net asset value, venture funds around 20%, and real estate portfolios facing discounts of roughly 30%.
Founded in 2015, Dawson Partners manages roughly $20 billion in assets across private equity and credit strategies and employs more than 200 professionals globally, with offices in Toronto, London, and New York. The firm’s leadership includes co-founders Yann Robard, formerly head of secondaries and co-investments at the Canada Pension Plan Investment Board, and Michael Gubbels, who previously held roles at the Ontario Teachers’ Pension Plan and OMERS.
The transaction highlights ongoing momentum in Asia’s private equity secondary market, where valuation timing gaps and market volatility can complicate pricing and deal closure. Still, asset owners like the Hong Kong Jockey Club continue to use the market as a key tool to manage portfolio liquidity and rebalance exposure.
Source: China Daily
