Median high bids for buyout stakes rose to par in the second half of last year, according to a report by Elm Capital that analysed its own dealflow.
Sales of stakes in funds of funds also increased as LPs moved to direct fund investments or segregated accounts, according to a report by Elm Capital.
Most strategies saw a dip in fundraising last year compared with a year earlier, with growth funds also experiencing a similar level of decline.
Fund of funds and secondaries strategies are the second most popular this year, accounting for 22.8% of the capital committed so far.
Private equity was third behind venture capital and private equity real estate, according to the NACUBO-Commonfund Study of Endowments.
The bank’s private equity fund interests were valued at $5.4bn, a 14% drop from the end of 2014.
Volatility in public markets and macroeconomic uncertainty are making secondaries participants more cautious, which affects pricing.
The two most sought-after managers in the US and Europe have no hurdle rates on their latest funds.
Secondaries was one of only three strategies to generate positive IRRs on a quarterly basis alongside European private equity and venture capital funds.
LPs expect to see detailed budgets to justify fees and ensure they are not being excessively charged, according to MJ Hudson's first LP Intel report.
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