Marine Cole
The State Board of Administration of Florida is a frequent seller in the secondaries market.
The bank has decided to let the investments run through the end of their life and may consider tapping the secondaries market only if interests remain by the Volcker Rule’s July 2017 deadline.
Dallas-Fort Worth International Airport Retirement System previously invested $5 million in Permal Private Equity Opportunities IV.
The Seattle-based firm noted in its Private Equity Outlook that a general increase in primary private equity investments at high valuations, followed by a market correction, could provide a favourable future entry point.
The sovereign wealth fund has hired Cogent to advise on the transaction, which could total about $1bn.
Deals are being done faster than ever, with binding bids coming in within a week or two, and large sales completing in half the time. That’s the key takeaway from Greenhill Cogent’s half-yearly volume and transaction data, but there are a couple of other driving factors too.
While the secondaries market is providing a convenient avenue for limited partners to sell fund stakes and access to liquidity, alternatives such as preferred equity have become welcomed opportunities for LPs looking to preserve portfolio upside, explains Pierre-Antoine de Selancy, managing partner and co-founder of London-based 17Capital.
The use of leverage has become a common occurrence in the secondaries market, but firms like Ardian are making sure they remain cautious when they use debt in a transaction.
Transaction volume of real estate secondaries could more than double in 2015 compared to last year, according to Greenhill Cogent’s semi-annual secondary market study released on Wednesday.
Secondaries pricing and transaction volume for the first half of the year are in line with last year’s figure, Greenhill Cogent’s semi-annual Secondary Market Trends and Outlook found.