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Most investors think secondaries market is overvalued

Investors' and GPs' views on secondaries valuations are diverging, according to a survey from SEI.

More than 50 percent of investors/limited partners think they are paying too much when investing in secondaries, according to a survey from SEI.

Meanwhile, only 38 percent see the market as being fairly valued and only eight percent find it to be undervalued.

General partners take a more positive view, with 63 percent of them believing that the secondaries market is fairly valued and less than a third of them seeing it as overvalued. Consultants have similar views than GPs, with 53 percent of them thinking the secondaries market is fairly valued and 32 percent thinking it is overvalued.

Jim Cass, senior vice president and managing director of investment manager services at SEI, noted that market participants, in particular investors, are looking for greater transparency regarding what assets are available in the secondaries market so they can better compare valuations.

Source: SEI