University of California Sells $1 B in Private Equity Stakes to HarbourVest as Siguler Guff Closes $500 M India Mid‑Market Fund

The University of California’s investment office has completed the sale of approximately $1 billion in private equity fund interests to HarbourVest Partners, marking a notable liquidity move in a surging secondary market. Almost simultaneously, private markets firm Siguler Guff has closed its Global Emerging Markets Growth Opportunities Fund II (GEMGO II) with $500 million in commitments focused on India’s mid‑market—highlighting continued investor appetite for growth opportunities in emerging economies.

UC Investments Taps Secondaries for $1 B Liquidity

The University of California, which oversees a total investment portfolio of around $190 billion, has sold stakes in private equity funds to HarbourVest at a reported discount of more than 10% to their carrying value. The transaction closed in mid‑August 2026 and included primarily software and technology‑focused buyout fund interests. This reflects a growing trend among large institutional investors turning to the secondary market for liquidity and portfolio rebalancing purposes.

The sale comes as the secondary market reaches record volume: first‑half 2026 secondary transactions totaled approximately $121 billion, up 25% year‑on‑year and well above the $97 billion recorded in the same period in 2025. The UC investment office appears to be recalibrating its exposure—with private equity allocation rising to nearly 10% of the portfolio by mid‑2025, up from 5% in 2020—by generating cash distributions for redeployment and maintaining policy targets.

Siguler Guff Closes $500 M India Mid‑Market Fund

At the same time, Siguler Guff has secured $500 million in capital commitments for its GEMGO II fund, aimed at backing founder‑ and family‑controlled mid‑market companies in India. The fund, which has already begun deploying capital into sectors such as consumer, healthcare, financial services, and technology, offers investors direct access to India’s high‑growth firms.

GEMGO II will make investments of roughly $50 million each, along with co‑investment vehicles and separately managed accounts. The strategy aligns with long‑term themes of India’s expanding domestic consumption and favorable demographics. To date, Siguler Guff has deployed about $1 billion in India through various funds, investing in 23 companies including Indian Energy Exchange, GlobalLogic, City Union Bank, and Sterling Hospitals.

What Investors Should Monitor

The UC sale underlines how large institutions are leveraging the secondary market not only for distress exits, but as a strategic liquidity tool amid valuations and access constraints. The more than 10% discount suggests current market conditions favor buyers with dry powder willing to pay for immediate exposure at lower entry points.

Meanwhile, Siguler Guff’s fund close reflects robust investor interest in emerging‑market private equity, particularly in India. Focused capital deployment into founder‑led, mid‑cap enterprises underscores a belief in the resilience and scalability of this segment, even as global capital allocations remain cautious.

As the secondary market expands and investor capital rotates across geographies and strategies, these dual developments illustrate evolving dynamics in private markets: institutions reshaping exposure through liquidity, while funds continue to chase growth in structurally appealing markets.