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Bailey McCann, Opalesque New York: The private equity secondaries market is poised for continued growth, according to new data from S&P Global Media Intelligence. Demand for secondaries is on the rise as both GPs and LPs look for liquidity solutions during a slow time for M&A.
Twelve funds collected $38.77 billion in capital commitments this year through June 16, according to an S&P Global Market Intelligence analysis. This puts private equity secondaries fundraising on track to exceed $60.78 billion from full year 2024.
A total of 215 private equity secondaries funds are actively seeking capital, the highest count in at least a decade, according to Preqin.
Current dry powder for secondaries stood at $227.40 billion as of Sept. 30, 2024, the latest estimate available from Preqin Pro. However, that's only enough for eighteen months of dealmaking. Which means that funds currently in market will need to come online quickly in order to meet existing demand.
S&P Global Market Intelligence analysis shows that private equity secondaries funds raised a total of $34.10 billion globally between Jan. 1 and March 31, the highest quarterly total in two years. Analysts further suggest that demand is so high at the moment that we may get to year end with a transaction volume that is artificially low relative to actual demand while investors wait for these new funds to start investing.
Some asset managers are working to capitalize on that demand. As Opalesque recentl...................... To view our full article Click here
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