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The average secondaries transaction size was $40m last year, according to a survey conducted by Zug, Switzerland-based AXON Partners.
Discounts do not have as meaningful an impact on returns in the real estate secondary market as one would think, experts said at the PERE LA event last week.
The median of the highest bids received by Elm Capital was 97 percent of net asset value for buyout funds.
The eight private equity fund stakes sold at par or a premium to net asset value, explained managing director Kevin Campbell.
Roughly 54 percent of LPs believe current secondaries valuations are too high, according to a report from SEI.
Secondaries buyers are increasingly using deferred payments and leverage to compete for assets. But smart structuring can also lock in returns in case there’s a new downturn in the euro zone.
Sam Green, private equity investment officer at the Oregon State Treasury, talks dry powder, pricing and ‘tactical shifts’ in secondaries strategies.
There are certain alternatives a company should consider in the 409A valuation process when permitting secondary sales, writes Ira Simkhovitch, a senior associate at Industry Ventures.
The Austin-based venture capital investment bank focuses about 40 percent of its investments on secondaries.
2014 was the year of high priced fund books and cheap leverage, Coller Capital chief investment officer Tim Jones said.