The private equity secondary market has attracted a wealth of interest of late, with transaction volume reaching approximately $20 billion in 2008. The current economic climate and effects of the financial crisis have brought the market to the forefront of the private equity industry. So, who are the potential buyers and sellers of private equity secondary interests? At the time of print, the Preqin Secondary Market Monitor (SMM) included profiles for 384 potential buyers of private equity secondary market fund interests. These buyers include detailed profiles for 178 primary and secondary private equity and private equity real estate fund of funds managers, but the remaining 54% of potential buyers are comprised entirely of institutional investors in private equity.
In addition to the extensive coverage of potential private equity secondary market buyers, SMM currently includes detailed profiles for 109 potential sellers of private equity and private equity real estate fund interests. In terms of regional base, we have identified 61 potential sellers from Europe, representing 14% of the LPs in that region from which we have collected secondary market data. Of the North American LPs for which we hold secondary market data, 37 are considering selling private equity fund interests, representing 10% of the total from this region. The remaining 11 potential sellers are based throughout the rest of the world and constitute 16% of the LPs outside Europe and North America from which we have gathered data regarding private equity secondary market activity.
If you are an accredited investor and would like a confidential indicative valuation of all or part of your private equity holdings, please see Preqin’s Secondary Market Monitor