Average price of LP interests increases by 4% since 2013

Interests in large US buyout funds are the most expensive secondaries trades this year, according to Triago.

The average price of LP interests across all fund strategies has increased about 4 percent since the end of 2013, according to data from private equity advisor Triago.

The most expensive interests are in large US buyout funds. The average price of those interests has been 101 percent of net asset value (NAV) so far in 2014. Last year, the average price was 97 percent of NAV.

Source: Triago

Interests in large European buyout funds are the second most expensive, although they have still garnered a discount. The average price this year has been 98 percent NAV, compared to 94 percent of NAV last year.

The price of stakes in mid-market buyout funds and venture capital funds increased the least – only about 3 percent each to 95 percent NAV and 89 percent NAV respectively.

As in 2013, tail-end fund stakes remain the least expensive. This year, they have rendered an average discount of 15 percent (85 percent NAV) and in 2013 they priced at a 19 percent discount (81 percent NAV).

Source: Triago