Secondary Private Equity Demand to Increase for 2013-2016 Funds in 2020 | NYPPEX
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Market Commentary
Limited Partner Clients

NYPPEX: Strong Secondary Demand to Continue
for Newer Private Equity Funds in 2020

February 24, 2020

  • NYPPEX believes strong secondary buyer demand will continue in 2020 for newer private equity funds as well as feeder funds, as more secondary investors heavily discount “end of life” portfolio investment opportunities.
  • In 2018, this trend was predicted by NYPPEX after an analysis of funds 12 to 15 years of age showed annual returns of -1% to -4% on average.
  • Illustrative secondary price executions to sellers in the 2H2019 were:
        • a 12% called U.S. infrastructure fund transferred at approx. 85.57 (% NAV)
        • a 23% called U.S. tactical feeder fund transferred at approx. 84.25 (% NAV)
  • For sales of newer funds, NYPPEX focuses on providing sell side clients the opportunity for superior price execution, transaction speed and compliance under IRS §1.7704. 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 us at +1 (914) 305-2801 or by clicking here.
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