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Market Commentary

Secondary Bids 19% Lower in 2Q2020 vs 4Q2019

April 20, 2020

  • For secondary interests in private equity funds, NYPPEX estimates bids are 19% lower in the 2Q2020 on average thus far vs. the 4Q2019.
  • This is being driven by expectations for lower net asset values and greater exit risk caused by the coronavirus.
  • For example, if a secondary interest transferred at 92.25 in the 4Q2019, our guidance for the 2Q2020 is approximately 74.70 or 19% lower based on December 1, 2019 NAVs.
  • Private equity fund strategies lease affected by lower secondary bids are private debt, real estate and infrastructure.
  • Regardless of lower secondary bids, we are seeing a pickup in secondary sales as limited partner seek to reduce allocations to private equity funds to maintain their target allocations.
  • For prospective selling limited partners, NYPPEX provides the opportunity for superior transaction speed and price execution through its NYPPEX QMS Platform™ and a proactive marketing approach byspecialized professionals.
  • Qualified clients interested in a confidential discussion are welcome to contact the NYPPEX Secondary Transfer Desk at +1 (914) 305-2801 or inquiries@nyppex.com.
  • 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
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