NYPPEX: Secondary Price Trends for Private Equity Funds Worldwide in 4Q2020
November 16, 2020
- Although there is significant liquidity in the secondary private equity markets, bid indications are only modestly higher in the 4Q2020 for interests in private equity funds as compared to the 3Q2020.
- We believe secondary buyers are concerned about (and pricing bids to reflect):
Ongoing COVID-19 trends that are adversely affecting portfolio companies, particularly those in the retail, travel and leisure industries;
Uncertainty regarding US presidential election related litigation
- On the positive side:
Secondary market liquidity is deep as our managed auctions are attracting many interested buyers;
Highly uncalled interests (less than 40% called) are attracting plenty of secondary buyers as a result of the record amount of capital raised for secondary allocations in 2020
- To arrange a confidential call with one of our Managing Directors, please contact NYPPEX at email@example.com
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Information as estimated by NYPPEX. Actual results may differ. This market commentary is for informational purposes and qualified clients only. It is not a solicitation of a private transaction which may only be done through documents created by the private fund or private company and only in jurisdictions where permissible. Private placements may contain a high degree of risk.
Copyright 2020. NYPPEX Holdings, LLC. All rights reserved. www.nyppex.com
About NYPPEX Private Markets
NYPPEX is one of the worlds’ leading Qualified Matching Services (“QMS”) and secondary private equity transfer administrators. Our specialized professionals and the NYPPEX QMS Platform™ provide clients the opportunity for superior transaction speed and price execution, at low cost.
We have provided access to deep liquidity from established client relationships located in over 26 countries. Our clients include alternative investment firms, private companies, pension funds, financial institutions, endowments, foundations, family offices and their respective advisors worldwide.
Since 2004, the NYPPEX QMS™ has been formerly recognized by the U.S. Internal Revenue Service (through private letter ruling PLR-111165-04) as a Qualified Matching Service for private partnerships under Internal Revenue Code §1.7704. Securities privately offered through NYPPEX, LLC in jurisdictions were permitted. NYPPEX is regulated in the U.S. by the SEC and FINRA. Member SIPC. www.nyppex.com.Copyright © 2020 NYPPEX Holdings, LLC. All rights reserved.
This commentary is for informational purposes only and only for the addressee specified, which we understand to be a Qualified Purchaser and holder of private equity fund assets. It does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security which may only be done through an issuer’s offering documents and in jurisdictions where permissible. Nothing contained in this email or subsequent document constitutes investment advice or offers any opinion with respect to the suitability of any security. The views expressed on this email and subsequent documents should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this invitation, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed on this invitation or subsequent report by NYPPEX were prepared based upon the information available to NYPPEX at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.