In 2019, the secondary markets will generate significant exit volume
Since 1998, our goal at NYPPEX has been to help alternative asset investors achieve their goals.
We continue to be laser-focused on constantly improving efficiencies for our clients, which include greater private transaction speed, regulatory compliance and lower transaction cost.
Today, the NYPPEX QMS Platform™ is utilized by numerous global financial firms, alternative investment firms, private companies, institutional investors and private wealth advisors to access the secondary private equity markets worldwide in a fair and ethical manner.
The secondary private equity markets are playing a critical role as a source of investor liquidity. This serves as a strategic tool that helps private funds and companies raise more capital and in turn, employ more people worldwide.
In 2018, secondary private equity transaction volume achieved a record of approximately $54.6 billion for limited partnership interests and $29.3 billion for restricted securities in private companies, as estimated by NYPPEX.
In 2019, we expect greater secondary private equity transaction volumes worldwide, driven by the following trends:
- Weak IPO Exit Volumes.
In 2018, the value of IPOs in the United States was moderate at approximately $46.8 billion compared to $85.3 billion in 2014 (for companies with market capitalizations above $50 million).
- Greater Stock Market Volatility.
Stock market volatility increased 130% in 2018 as measured by the VIX, the highest annual increase since its inception in 1993.
- Private Equity Funds Extending Terms.
Weak exit volumes are causing private equity funds to extend terms and make more follow-on investments in portfolio companies. Today, private equity funds aged 15 years or more comprise approximately 24% of all private equity funds worldwide compared to just 16% in 2013.
Our integrated specialized services – Private Equity Transfer Administration (including Qualified Matching Services under IRS Reg 1.7704), Brokerage, Credit Facilities, Market Data, Portfolio Solutions and Asset Management – provide clients an unmatched opportunity to manage risk, control costs and optimize returns.
However, what matters most is that the NYPPEX brand always stand for trust and credibility to our valued clients worldwide.
Laurence G. Allen
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