Karim Cherif Antoinette Zuidweg Antoniy Petrov

Putting fresh capital to work in private markets in the years following declines in public markets has historically proven a rewarding strategy over the long term. We currently favor strategies that can take advantage of price dislocations. But we also see opportunities to grow exposure to digitalization and the transition to a low-carbon economy.

Secondary market managers specialize in buying assets from other private market managers and investors seeking to liquidate their holdings. With some investors needing liquidity due to portfolio rebalancing or forced selling, buyers are able to negotiate better prices for assets. According to Jefferies, in the first half of 2022, the price to net asset value—how much potential buyers are willing to pay compared to what the underlying asset is worth—for buyout funds stood at 91%, compared to 97% at the end of 2021. And volumes appear to be growing. Over the same period, total secondaries deal volume stood at USD 57 billion, surpassing the record USD 48 billion set in the first half of 2021.

Pricing as % of NAV

Source: Jefferies Global Secondary Market Review 2H2022

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