Private Equity Funds in Asia Soon to be Dead Money Caused by Coronavirus | NYPPEX
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Market Commentary
Limited Partner Clients

NYPPEX: Coronavirus to Cause Lower Allocations to
Asian Private Equity Funds in 2020

March 3, 2020

  • NYPPEX believes the Coronavirus will cause many Asian private equity funds to be “dead money” over the next 1-2 years and should be sold in the secondary markets throughout 2020.
  • We believe the effects of the Coronavirus will cause Asian businesses to experience lower revenue year over year in general, which will lead to underperformance and fewer exits for many Asian private equity funds that are US dollar denominated.
  • In 2019, the Hong Kong protests caused an ongoing secondary supply of Asian funds for similar reasons.
  • For older Asian private equity funds aged 10 years or more, we estimate bid indications are now in a range of 67.50 to 72.80 in general.
  • For newer Asian private equity funds aged 2 to 5 years, we estimate bid indications are now in a range of 82.75 to 89.50 in general.
  • For secondary sales of interests in Asian private equity funds, NYPPEX focuses on providing sell side clients the opportunity for superior price execution, transaction speed and compliance under IRS §1.7704 with our IRS private letter ruling.

    We believe these goals are best achieved through customized solutions, insightful analytics and deploying a proactive targeted marketing approach.
  • Limited partners interested in a confidential discussion are welcome to contact our investor relations department (914) 305-2801 or by clicking here.
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