The market for secondary offerings in private equity used to be the PE world’s off-price discounter: limited partners mostly used it to glean some returns from distressed assets. Statistics say deals were done for discounts of 35% or more to net asset value. No longer. Discounts have shrunk to mid single-digit levels. The secondary market has grown from a couple billion dollars to over $30 billion in 2014, and could grow another 30% in 2015. Some is driven by regulatory changes – banks are now required to reduce their exposure to alternative assets – but most of it by a desire by LPs for additional liquidity.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
