Sun, Nov 29, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund side pocket secondary market volumes top $1.6bn in 2013

Monday, January 13, 2014

Bailey McCann, Opalesque New York:

A new report out from Setter Capital shows that secondary market volumes for hedge fund side pockets was up again in 2013. Data shows that LP's are becoming more opportunistic fueling greater market activity. Setter Capital estimates the total secondary market volume for 2013 was $36bn, authors note that the figure may be conservative owing to the limits of their own research.

A majority of respondents expect the same or greater level of transaction activity to take place in the first quarter of 2014. The average size of these transactions in 2013 was $28m, and that deal size is also expected to continue. Private Equity Strategies reported last year on the significant uptick in the private equity secondary market as those transactions shifted away from fire sales and into garage sales for investors wishing to exit parts of their portfolios for a whole host of reasons. This same trend is spurring an uptick of activity in the hedge fund secondaries market.

Secondary hedge fund transactions still account for much less overall market volume than private equity or real estate deals, although the number increased to approximately 4.4% of all secondary transactions in 2013. Notably, the report says - "the average deal size of buyers that deployed up to $1bn in 2013 was roughly $15m suggesting......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November