Getting ahead with private equity secondaries
Private equity secondaries investment is an important tool used today by many General Partners (private equity fund managers) to circumvent time and capital limitation. It has since become part and parcel of the private equity investment ecosystem.
Private equity secondaries investing is not niche anymore
- 0 x
growth in transaction volumes from USD 18b in 2007 to over USD 130b in 2021
- 0 billion USD
dry powder for deployment will be raised in 2022
What are private equity secondaries?
Private equity secondary buyer acts as liquidity provider to private equity investors who wish to sell their positions and do not have the time or desire to hold on to their investments until the end of the regular lifespan.
Background to private equity investing
3 reasons to invest
1. Quick ramp up of exposure
For new entrants to the asset class, the private equity secondaries market allows them to scale-up a diversified exposure three to five years faster.
2. Generate liquidity, but quicker
Secondary-focused strategies, can generate liquidity much quicker than traditional multi-manager investment solutions.
3. Purchase at a discount
Secondary buyers often have the ability to buy positions at discounts to the reported net asset values leading to initial book gains at closing due to the transaction mechanics .
Historical secondary pricing (as % of NAV)
These initial book gains help offset the so-called J-curve effect, a period of initial negative performance that is inherent in private equity.
Why UBS-AM for private equity secondaries?
UBS Asset Management (UBS-AM) has been managing open-ended, semi-liquid solutions in various asset classes since 2000s and is one of the most experienced operators of semi-liquid investment solutions globally.
USD 12 billion
invested and committed across various client mandates and products.¹
Since 2003
Track record of investing in secondaries on an opportunistic basis
Alternatives House of the Year
Alternatives House of the Year
UBS Asset Management won the 2022 Alternatives House of the Year in Singapore.
Private equity secondaries is one of the many alternative strategies UBS-AM offers.
Disclaimer:
For marketing and information purposes by UBS.
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Source for all data and charts (if not indicated otherwise): UBS Asset Management (Singapore) Ltd. (UEN 199308367C )
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