These private equity sales are part of a broader sale of hedge fund portfolios, PCG’s Fann said. The private equity and venture capital firm buyers are buying these interests in portfolio companies at significant discounts, he said. For the single company deals, hedge fund executives are approaching the firms that know the portfolio companies the best. Private equity and venture capital firm co-investors generally have the right of first refusal or a first look at these deals, under their contracts. Buyers of bulk private equity have been mainly secondary private equity firms that specialize in buying portfolios of private equity-backed companies.