Home Pricing
Pricing
Ardian has invested an eye-catching $8bn on secondaries deals in the past year – and could possibly prove that high prices won’t prevent GPs from finding value for investors.
Shares sold on the secondaries market usually garner discounts, according to a white paper from investment and advisory firm Arnerich and Massena.
The Portland, Oregon-based firm says it has never paid a premium for any assets on the private equity secondaries market.
Secondaries firms are more selective and may use a different discount rate when pricing assets in emerging markets, according to Partners Group.
The online secondaries platform has already transacted more deals this year than in 2013.
CBRE Global Multi Manager has completed just two real estate secondaries deals in Asia this year, according to Singapore-based managing director Adrian Baker.
SL Capital purchased the stake from the Royal Borough of Windsor & Maidenhead, Secondaries Investor reported earlier this week.
Leverage ratios and secondary market volume have little effect on real estate pricing discounts, according to research from Consilia Capital.
The Swiss-based investment manager believes private equity secondaries pricing could go higher still, but risky assets should be given a wide berth.
The New Mexico State Investment Council’s recent secondaries activity should encourage other LPs to take advantage of full pricing and demand.