Probitas: 50% of investors actively buy LP interests

An overwhelming majority of investors surveyed by Probitas Partners are active in the secondaries market to some degree.

Half of investors report actively buying limited partner interests on the secondaries market, according to a survey conducted by placement agent and advisory firm Probitas Partners.

The firm’s Private Equity Institutional Investor Trends for 2015 Survey revealed the majority of investors are active in the secondaries market to some extent, with just 13 percent of respondents reporting no secondaries activity.

Committing capital to secondaries funds proved to be the second most popular route for investors on the secondaries market. Nearly half – 49 percent – reported actively investing in secondaries funds.

Meanwhile, only one-third of investors, or 31 percent, reported selling or considering selling fund interests for portfolio management reasons.

Direct secondaries also proved to be less popular. Just 14 percent of survey respondents actively purchase direct positions in companies on the secondaries market.

The survey also included firms that advise clients on secondaries. About 13 percent of firms reported engaging in advisory activity.

Source: Probitas Partners