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 firstname.lastname@example.org.
- 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.