Marine Cole
An inside look at the latest market transaction reports and why they differ.
The $26.2bn fund has already established a relationship with Landmark Partners last year, committing $300m to a couple of its funds.
The $13.8bn pension plan had a successful sale last year but its chief investment officer indicated it shouldn’t depend on the secondaries market to access liquidity.
While average pricing remains stable, the split in pricing between high-quality funds and lower-quality funds is becoming larger.
The secondaries buyers made a stapled transaction, purchasing $109 million-worth of interests in Transportation Resource Partners III and also investing in Transportation Resource Partners IV.
The average net IRR for secondaries funds in the first quarter was down but long-term returns remain flat.
Sentiment in the secondaries market could turn sour in the fourth quarter, so NYPPEX recommends buyers adopt a more hands-on approach to maintain returns.
Most of the volume was driven by large players and transactions of more than $600 million. Energy and real estate transaction volume was down.
The supply of real estate secondaries is increasing dramatically, but it remains to be seen whether there’s enough demand to absorb it all.
NorthStar Realty Finance was one of the buyers in transactions that totalled about $500m out of the $1bn offering.