LBO funds dominate PE secondaries trades

Leveraged buyout funds continue to account for most of the private equity funds traded on the secondaries market, according to a report by Setter Capital.

LBO funds represented about $22.2 billion, or 82 percent of total private equity fund purchases.

“LBOs definitely dominate year-over-year mainly because this is where the bulk of the private equity money resides,” said Setter managing director Peter McGrath.

A total of $26.8 billion of private equity funds were traded on the market. Aside from LBO other strategies traded include energy funds, venture capital, fund of funds and mezzanine.

Meanwhile, real estate fund purchases were more equally divided. Of the $6.8 billion of fund purchases,  $2.6 billion of interests were traded in core funds, $2.4 billion was traded in value-add funds and the remaining third was purchased in opportunity funds.

Source: Setter Capital