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Buyers expect NAV to stabilise in H2

Buyers in the secondaries market expect the value of funds to stabilise in the second half of this year, according to a report by intermediary Setter Capital.

Secondaries buyer expect the net asset value of funds to stabilise in the second half of this year,  according to Setter Capital’s Secondary Market H1 2015 report released on Monday.

Most of the buyers Setter surveyed for its report said they expected NAV to rise by between 1 percent and 4 percent, compared with the first half of this year. On average, respondents expected the value of assets held in a fund to rise 1.65 percent.

“Given buyers’s low expectations for NAV and distribution increases, we expect pricing to be flat or perhaps soften a bit in H2,” Kristina Kulikova, a senior analyst at Setter Capital in Toronto, told Secondaries Investor.

On average, respondents expected the pace of distributions to be little changed at 0.38 percent higher in the second half of the year, compared with the first half.

Setter Capital surveyed 78 of the most active buyers in the secondaries market for alternative investment funds including private equity, real estate, hedge funds, infrastructure and agri/timberland.

 

Screen Shot 2015-08-17 at 16.14.36Source: Setter Capital.