Secondary Market Intermediaries

by Antonia Lee

  • 23 Feb 2012
  • PE

Preqin currently tracks 64 secondary market intermediaries, which account for over $136bn of secondary market deal flow. North America and Europe-based intermediaries dominate the market, both comprising 48% of all intermediaries. The remaining 2% are located in Asia and Rest of World; however, an additional 25% of intermediaries have an office located in Asia or Rest of World, suggesting that there is a considerable amount of secondary market deal flow within the region.

The most active secondary intermediary in terms of total value of transaction represented is Cogent Partners. It has represented over $60bn of private equity secondary market transactions since formation in 2001. It recently assisted New Jersey State Investment Council with its sale of $575mn worth of private equity funds interests in order to consolidate its portfolio and make room for new commitments. Cogent Partners is also currently in the process of taking bids for a $500mn portfolio of energy funds for Harvard Management Company.

Another big player in the secondary intermediary space is UBS Investment Bank Private Funds Group. It is known to have assisted with over 60 secondary market transactions, representing over $24bn in deal flow. It managed CalPERS record breaking sale of its $2.1bn ‘legacy’ private equity portfolio back in 2008. The intermediary is currently managing a sale for Government of Singapore Investment Corporation (GIC). The sovereign wealth fund is looking to sell $750mn worth of private equity fund stakes on the secondary market in order to consolidate its fund manager relationships.

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