Pricing

Secondaries valuations have reached a record high; will they keep climbing in 2015?

The average price for private equity fund interests reached a record high in Q3, according to Credit Suisse.

Real estate represents the largest share of real assets secondaries and the growth of the market is one of the key trends of 2014, according to a quarterly update from Credit Suisse.

Chicago-based RCP is investing its sophomore secondaries fund, which closed on $425m last year.

Edinburgh-based SL Capital has deployed one third of its maiden secondaries fund, which closed on $190m in February.

San Francisco-based Akkadian Ventures closed its third direct secondaries fund on $74m in October.

Details that emerged this week around Montana’s recent secondaries sales make clear why other US public pensions are increasingly following suit.

Interests in large US buyout funds are the most expensive secondaries trades this year, according to Triago.

The use of leverage in the secondaries market has helped drive pricing and deal volume, but not all investors use the same type of leverage, explains Sunaina Sinha, founder of Cebile Capital.