About 40% of LPs sell to rebalance portfolios

Portfolio rebalancing is most LPs’ primary reason for selling on the secondaries market, according to Sixpoint Partners.

About 40 percent of limited partners said their primary reason for selling fund interests on the secondaries market was to rebalance their portfolio, according to a survey conducted by mid-market investment bank Sixpoint Partners.

Another 27 percent of LPs said they’re selling because of liquidity needs, while another 20 percent are trying to exit non-core general partner relationships. Few LPs, only 13 percent, said their top reason for selling is to clean up administrative burdens, such as older-vintage funds.

Source: Sixpoint Partners