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Laxman Pai, Opalesque Asia: Private equity secondaries make up the largest part of the private debt secondaries. AUM in this area has increased significantly over a short period of time, rising 23.4% from $243bn at the end of 2019 to $300bn as of December 2020, said a report by Preqin.
According to the report, this $57bn increase in AUM suggests that more secondaries funds are being raised, and existing fund series are targeting more capital.
At the start of 2021, Coller Capital closed its largest secondaries fund to date, at $9bn. Other recognizable names such as Landmark Partners and Partners Group currently have their largest secondaries funds in the market, targeting $6bn and $4bn respectively.
Across all secondaries funds, dry powder has also increased, sitting at $127bn as of December 2020.
Investors continue to commit to secondaries funds, aware that the market is evolving and is becoming ever-more sophisticated and complex.
Meanwhile, the secondaries had their most successful year so far in 2020, raising $77bn. Of funds closed, 88% secured final amounts above their targets. This fundraising success has continued into 2021.
As of the end of June 2021, 54% of all secondaries funds and 56% of private equity secondaries funds have closed above their targets.
However, success has not been spread evenly. Pandemic-induced restrictions impacted due diligence, making it difficult for emerging secondaries managers to build a new relationship an...................... To view our full article Click here
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