H1 secondaries volume hits $22bn

The total volume of secondary deals across alternative asset classes reached $22 billion in the first half of 2014, according to a report from Toronto-based advisory firm Setter Capital.

The figure represents a 47 percent increase from the $15 billion of total volume recorded during the first half of 2013.

Of the $22 billion in secondary purchases, purchases of private equity interests (both fund stakes and directs) made up $16 billion. Real estate transactions accounted for $3 billion, while hedge funds and infrastructure deals accounted for $2.2 billion and $0.5 billion respectively.

Private equity secondaries volume increased by 33 percent from the same period in 2013. Real estate secondaries volume remained roughly flat year-over-year.

The volume of secondary direct sales meanwhile increased by 32 percent because a lot of GPs looked to restructure their funds and the market as a whole started to become more comfortable with these types of transactions, a spokesperson from Setter told Secondaries Investor. 

Despite revealing growth across the entire secondaries market, the volume figures are fairly conservative and were partially based on 81 responses from established market players with long-time dedicated secondary efforts, Setter said. The survey excluded non-traditional buyers such as pensions and endowments and many sovereign wealth funds.

Setter’s data comes the week after investment bank Cogent Partners reported secondaries volume of $16 billion during the first half of 2014.