Conversus Capital, a publicly listed fund of funds, will suspend quarterly dividend payments to free up capital for investment opportunities, especially in the secondary market.
Tim Smith, Conversus chief financial officer, said during an earnings call that the fund of funds anticipates half of its commitments in the next 12 months will be in the private equity secondaries market.
“The capital can be better used to take advantage of investment opportunities we’re seeing especially in the secondary market,” said Bob Long, chief executive of Conversus.
Conversus, which is backed by Oak Hill Investment Management and Bank of America, reported a 4 percent decline in net asset value to $26.48 per share in the third quarter ending 30 September. That’s compared to an NAV of $27.64 as of the second quarter ending 30 June – a 3.9 percent decline for the year.
The firm debuted on the Euronext in 2007 at $25 a share. As of press time, it was trading at $18.25 per share.
Earlier this year, Conversus joined a deal to buy a portion of a $189 million CalPERS fund portfolio put up for sale by the California pension fund.