Pricing

There are certain alternatives a company should consider in the 409A valuation process when permitting secondary sales, writes Ira Simkhovitch, a senior associate at Industry Ventures.

The Austin-based venture capital investment bank focuses about 40 percent of its investments on secondaries.

2014 was the year of high priced fund books and cheap leverage, Coller Capital chief investment officer Tim Jones said.

The UPS Group Trust didn’t buy any real estate assets on the secondaries market during the second half of 2014 because of high prices.

Leverage is not new to the secondary market, but it has become more prevalent and consequently LPs should keep an eye on the impact of its use, says Chason Beggerow, a partner at private equity advisory firm Altius Associates.

Partners Group generated $77bn in private equity secondaries deal flow across 450 deals in 2014, but the firm remains selective in an increasingly competitive market, says co-head of private equity secondaries Adam Howarth.

Toronto-based Kensington Capital Partners hasn’t invested in secondaries since 2010, when it purchased two stakes in Trivest Fund IV, explained managing director Suganya Tharmalingam.

The median bid for limited partner stakes trading on the secondaries market grew 1.2 percent year over year.

Abbott Capital plans to invest between $50m and $100m in secondaries each year, according to director Martha Cassidy.