China Investment Corp. (CIC), the country’s $1.3 trillion sovereign wealth fund, has shelved its planned $1 billion sale of U.S. private equity fund stakes involving top firms such as Carlyle, KKR, and TPG. The sale, originally intended to scale back its exposure to U.S. alternative assets amid geopolitical uncertainty, has quietly been called off, according to sources familiar with the matter.
CIC had enlisted Evercore to advise on the sale but has now informed potential buyers and fund managers that the assets are no longer on the market. Neither CIC nor Evercore responded to requests for comment.
Institutional investors rarely reverse course this late in a divestment process, underscoring CIC’s conflicting priorities—reducing risk tied to illiquid U.S. holdings while avoiding the appearance of strategic retreat. The reversal comes as U.S.-China tensions show signs of thawing, with recent diplomatic efforts laying the groundwork for trade de-escalation. The U.S. has even indicated a willingness to ease export restrictions in exchange for cooperation from China on rare earth supplies.
CIC, which manages part of China’s foreign reserves, has faced growing pressure from potential U.S. capital restrictions under the Trump administration. While it may still divest other U.S.-based assets—such as real estate or infrastructure—the private equity fund stakes will remain in its portfolio for now.
The move reflects CIC’s lower risk appetite compared to its aggressive investment strategy in the 2000s, when it made high-profile deals with Blackstone and Morgan Stanley. Its latest annual report shows its allocation to alternative assets has dropped below its 50% target. Despite this, CIC has been signaling to global fund managers that it remains a stable, long-term investor.
Had the sale gone through, CIC would have entered a hot secondary market where demand for stakes in top-tier private equity funds remains strong. Evercore reported a record $160 billion in secondary deal volume last year, driven by institutional investors seeking early liquidity and buyers looking to acquire discounted assets.
Source: Bloomberg
