Chelsea Stevenson
Navigating full pricing, the rise of restructurings and the use of seller financing in today’s booming secondaries market were among the topics debated recently in New York at a PEI roundtable.
The Baltimore Fire and Police Employees’ Retirement System has committed to secondaries funds managed by LGT Crown and Greenspring Associates.
The highest prices for LP interests ranged from 100 percent to 102 percent net asset value during the first quarter, according to NYPPEX.
The challenge with buying LP interests in funds of funds is the number of potential buyers is limited, said Sunaina Sinha, managing partner of Cebile Capital.
In 2014 the average price of LP interests traded on the secondaries market was 94 percent of net asset value.
Michael Alfano has launched Reciprocal Capital, a New York-based investment company focused on private equity secondaries and co-investments.
The average secondaries transaction size was $40m last year, according to a survey conducted by Zug, Switzerland-based AXON Partners.
The largest secondaries buyers have more than $1bn of capital to invest in secondaries, according to a survey conducted by AXON Partners.
The London-listed fund of funds has invested in 11 secondaries transactions in the nine months up to 31 March.
The Northleaf Venture Catalyst Fund can invest up to 10 percent of its total commitments in secondaries.
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