P.E. Secondaries Set For Biggest-Ever Year

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.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of