The secondaries market currently has $49 billion of dry powder, according to a survey conducted earlier this year by UBS.
UBS also estimates that 16 secondaries buyers have $1 billion or more in dry powder and within that group there are eight buyers with $2 billion or more of capital to be deployed.
At the same time last year UBS estimated secondaries dry powder was $45 billion, including non-dedicated and opportunistic buyers such as sovereign wealth funds, explained Rodney Reid, former head of secondaries advisory for EMENA at UBS. Reid joined Evercore in August.
UBS’ recent dry powder estimate is in line with that of Cogent Partners, which estimates $45 billion in available equity and the $55 billion projected by Evercore. All of the figures are a decrease from the $64 billion Landmark Partners disclosed in October.
Still, dry powder is only “somewhat of a concern” to some limited partners. Sam Green, a private equity investment officer at the Oregon State Treasury said he has heard some LPs deferring new relationships with secondaries firms and others reducing the size of their commitments to secondaries funds. LPs haven’t expressed concern over dry powder on a large scale though, he added.