The Hong Kong Jockey Club is preparing to divest up to US$1 billion from private equity funds managed by major US firms such as Blackstone, Warburg Pincus, TA Associates, and Clayton Dubilier & Rice. The move reflects growing caution among Asian investors amid escalating US-China tensions that have persisted since the Trump administration.
As the exclusive horse racing operator and one of Hong Kong’s largest institutional investors, the Jockey Club is reducing its exposure to US assets, following a broader trend among Asian funds and high-net-worth individuals. Many have been reevaluating their US holdings, particularly in equities and Treasuries, due to rising geopolitical risks and unpredictable market conditions.
According to sources familiar with the matter, some US$700 million of the Jockey Club’s assets are being offered through one of several vehicles in the secondary market—a rare move for the organization. While private equity secondaries are commonly used for early liquidity, deals of this size are unusual for the Club.
The sale process began in early 2025, with prospective buyers engaging by April. Jefferies Financial Group is advising on the transaction. Earlier reports suggested the Jockey Club was initially seeking to offload around US$500 million in private equity positions.
This divestment mirrors other efforts to scale back US exposure. China Investment Corporation recently considered selling a similar-sized portfolio but later halted the plan. Bloomberg previously reported that about ten family offices across Asia were reducing or freezing new investments in the US, citing concerns about volatility and policy uncertainty.
Blackstone and Warburg Pincus declined to comment on the sale. TA Associates, CD&R, the Hong Kong Jockey Club, and Jefferies did not immediately respond to requests for comment.
Source: The Business Times
