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Market Commentary



Secondary Private Equity Transaction Volumes to Increase Substantially in the 2H2021

August 11, 2021

  • Secondary Private Equity Transaction Volumes To Rise As COVID Hampers Markets

    NYPPEX projects that secondary private equity transaction volumes will increase substantially in the 2nd half of 2021 in both alternative investment funds and private companies, as COVID-19 variants’ Delta, Eta, Iota, Kappa and Lambda adversely affect stock market returns.
  • LP Interest Sales Will Rebound Across The Board With Private Equity Liquidity

    We expect LP interest sales to rebound, both singles and portfolios, from relatively low volumes in 2020 and the 1H2021 compared to GP-led deals, especially if bid prices increase from secondary buyers with significant dry powder.
  • Weak IPO & Stock Market Set To Power Strong Secondary GP-Led Sales

    GP-led secondary sales will continue to be strong as exits will be sought in a weaker IPO and stock market.
  • Secondary Bid Prices Do Not Currently Reflect Their Historic Performance

    We believe secondary bid prices have been muted in the 1H2021 and do not reflect the historical performance of many alternative investment funds, particularly venture strategies.
  • Private Equity Liquidity Will Power Next Wave Of Gains Despite General Uncertainty

    This sentiment has been driven by secondary buyers that remain cautious about the effects of COVID-19 variants on certain industries, marked-up NAVs, fully valued stock market conditions, and most recently, concerns about inflation and higher interest rates ahead.
  • Qualified investors, funds and private companies are welcome to request a copy of the NYPPEX report at data@nyppex.com or +1 (914) 305-2825.

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Disclaimer Note: Information estimated by NYPPEX. Actual results may differ.

This email 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.