The University of California offloaded $1 billion of private equity stakes to HarbourVest Partners at a discount of more than 10%.

The portfolio, which is part of a $190 billion pool of retirement, endowment, and cash assets, concentrated mostly in software and other technology-focused buyout funds, sources familiar with the matter told Bloomberg. 

The UC Investment Office had been looking to offload its private equity holdings since earlier this year, sources added. Campbell Lutyens advised the University on the transaction.

As of June 30, 2025, UC Investment’s portfolio included $39 billion of private assets at market value, with private equity making up a large portion of its portfolio, its annual report noted. Its allocation to private equity rose to 10% from 5% in 2020.

HarbourVest Partners is a global private markets investment firm based in Boston, Massachusetts. The firm manages approximately $161 billion in assets as of Dec 31, 2025, and specializes in co-invests across venture capital, buyout, infrastructure and private credit funds, its LinkedIn overview states.

The private-credit secondaries market has been expanding quickly, as a growing subset of investors are utilizing the secondary market to address a broad range of liquidity and portfolio management needs, according to a report from Ares Management.

In 2024, the credit secondaries transaction volume totaled $15 billion. That’s a fivefold increase from 2019. Ares credits greater awareness and education about the asset class, paired with increased dedicated capital formation, for driving more sellers to transact.

“Recently, we are seeing sellers utilizing the credit secondaries market to access liquidity in order to prudently manage downside risk against an uncertain market backdrop,” said Dave Schwartz, Partner and Head of Credit Secondaries at Ares.

“Looking ahead, we anticipate the market to continue to grow meaningfully, with advisors projecting transacted volumes of $28 billion by 2026 and in excess of $50 billion by 2030.”

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