Wednesday, 1 July 2015
Last updated 6 hours ago
Apr 24 2014 | 2:25pm ET
The secondary private-equity market is set to hit an all-time high this year.
Volume in secondary deals, in which investments in private-equity funds change hands, will hit a record this year, The Wall Street Journal reports. Rising stock markets and concomitant appreciation of p.e. holdings have some investors wanting an early exit, and others clamoring for a piece of the growing pie.
Deal volume is likely to exceed $30 billion this year, according to top industry players, up from between $23 billion and $27.5 billion. And the growing demand has pushed discounts to net asset value in such deals down precipitously.
Discounts offered on the secondaries market fell to about 7% at the end of last year. During the financial crisis, the discount was often as high as 35%.
Secondary investments will be the major part of Ardian’s sixth fund; US$9 billion of the US$10 billion raised is dedicated to the area.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…