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Exclusive: what buyers want

Secondaries Investor reveals the UBS facts and figures from its position in the secondaries market with some surprising conclusions for the year ahead.

The UBS secondaries report found buyers were expecting less in their returns from the market but were preparing to pay more in auctions.

The survey found investors targeting gross multiples between 1.5x to 2x dropped to 70 percent of the 80 survey respondents from 82 percent in 2012; it also found the amount of surveyed respondents targeting gross IRRs between 17.5 and 25 percent dropped to 62 percent last year from 79 percent in 2012.

The report found buyers  anticipate deploying over 50 percent of their dry powder during 2014, which UBS found to be at $45.8 billion.

UBS said this year and last year a buyer needed at least $1 billion of dry powder to be a top 15 buyer; however those top 15 buyers comprise a greater portion of the dry powder currently in the market.

Following on from this week’s editorial, the UBS secondaries market survey can be viewed in completion here.