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Laxman Pai, Opalesque Asia: The private equity secondary market continues to grow and remain active with over 1,100 potential sellers and 1,450 potential buyers, revealed a study.
According to Preqin Secondary Market Update H1 2021, while potential sellers of fund stakes are varied, there is no single potential source of deals that is likely to dominate the space. Family offices stand out with the largest proportion of potential sellers (14%).
Public and private sector pension funds account for the next largest share, on 11% each, it said.
Sellers continue to come from established markets, with 45% of potential sellers based in North America and 34% in Europe. Those investors based in Asia and the Rest of the World represent 21% of the market - unchanged compared to the same time in 2020.
While on the face of it this data may not point to a particularly dynamic market, as the fast-maturing Asia market continues to grow, the region will likely account for a rising share of activity.
Buyout and venture funds remain the most likely fund types to be sold over the next 12-24 months, according to Preqin data.
While these core private equity fund types are most likely to be sold, buyers can expect to see more real estate and private debt funds entering the market, as these sectors experience rapid growth from a relatively low base.
The outlook for secondaries investors, both from a seller and buyer perspective appears to be positive.
That said, wi...................... To view our full article Click here
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