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Alternative Market Briefing

Alternative investment secondary markets rebound in 1H, 2021

Thursday, August 05, 2021

Laxman Pai, Opalesque Asia:

Completed transactions on the alternative investment secondary markets rebounded in the first half of 2021, up 171.7% from the first half of the previous year, said a study.

According to the Setter Capital Volume Report H1 2020, volume was up significantly across most alternative investments. The private equity secondary market (funds and directs) increased 198% year over year, to a total of $51.92 billion.

Private equity fund secondaries were up 100.2% ($20.18 billion in H1 2021 from $10.08 billion in H1 2020). Quadruple increases were seen across VC fund secondaries (up 322.0% to $2.82 billion in H1 2021 from $670 million in H1 2020), fund of fund secondaries (up 342.2% to $1.59 billion in H1 2021 from $380 million in H1 2020) and energy fund secondaries (up 321.8% to $196 million in H1 2021 from $46 million in H1 2020).

Real estate secondaries (funds and directs) were up 107.4% to $1.85 billion and private debt fund secondaries were up 177.3% ($1.06 billion in H1 2021 from $380 million in H1 2020). Bucking these positive trends, infrastructure fund secondaries were $910 million, down from $1.44 billion in H1 2020, and agriculture and timber secondaries were $85 million, down from $274 million in H1 2020.

Meanwhile, traditional fund secondaries increased 75.0% from $12.58 billion in H1 2020 to $22.01 billion in H1 2021, while direct secondaries quadrupled 330.9% from $7.64 billion to $32.91 billion (private equity directs were......................

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