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NYPPEX: volume of LP interest trades declines in Q1 – exclusive

The volume of LP interests trading on the secondaries market declined in the first quarter of 2015 from the fourth quarter of 2014.

The volume of limited partnership interests trading on the secondaries market declined in the first quarter of 2015 from the fourth quarter of 2014, according to NYPPEX Private Markets.

Laurence Allen
Laurence Allen

While NYPPEX declined to disclose volume data for the two periods, chief executive officer Laurence Allen said investors were less active in the first quarter because they were waiting for year-end valuations.

“Many investors (as well as prospective sellers) wanted to first see 31 December [net asset values], more so than other first quarters. So the secondary market took a bit of a breather.”

Allen said this was particularily evident across certain fund strategies such as energy where “NAVs declined between 10 and 40 percent as of 31 December”.

Still, NYPPEX expects the volume of LP interests to pick up in the second quarter and the remainder of 2015, based on pent-up supply and demand from the previous quarter.

In 2014, NYPPEX estimated roughly $36.5 billion-worth of LP interests traded on the secondaries market, Allen added.