Pricing falls in Q3 – Setter Capital

Secondaries funds themselves were among four strategies that had rises in pricing amid overall drops during the period.

Pricing for stakes in most fund strategies fell in the third quarter, with a 5 percent drop in average high bids for leveraged buyout vehicles leading fewer sellers to execute sales, according to Setter Capital.

Growth had the biggest drop, with average high bids for interests in the strategy falling 18.2 percent compared with a year earlier, according to the Toronto-based intermediary’s September Price Report. Venture capital fell by the least with a 0.6 percent decrease.

“When the pricing is just not close to par – it was 97 a year ago and now it’s down to 92 – that can make the difference between a seller pulling the trigger or not,” Setter’s managing director Peter McGrath told Secondaries Investor.

Only four strategies – turnaround, cleantech, energy and secondaries funds themselves – had a rise in average high bids.

Setter based its data on 755 funds it priced during the three months to 30 September.


Source: Setter Capital