Your browser does not fully support modern features. Please upgrade for a smoother experience.
Submitted Successfully!
Thank you for your contribution! You can also upload a video entry or images related to this topic. For video creation, please contact our Academic Video Service.
Version Summary Created by Modification Content Size Created at Operation
1 handwiki Dean Liu -- 3766 2022-09-27 02:52:13

Video Upload Options

We provide professional Academic Video Service to translate complex research into visually appealing presentations. Would you like to try it?
No, upload directly Yes
Cite
If you have any further questions, please contact Encyclopedia Editorial Office.
HandWiki. Private Equity Secondary Market. Encyclopedia. Available online: https://encyclopedia.pub/entry/27863 (accessed on 03 October 2026).
HandWiki. Private Equity Secondary Market. Encyclopedia. Available at: https://encyclopedia.pub/entry/27863. Accessed October 03, 2026.
HandWiki. "Private Equity Secondary Market" Encyclopedia, https://encyclopedia.pub/entry/27863 (accessed October 03, 2026).
HandWiki. (2022, September 28). Private Equity Secondary Market. In Encyclopedia. https://encyclopedia.pub/entry/27863
HandWiki. "Private Equity Secondary Market." Encyclopedia. Web. 28 September, 2022.
Private Equity Secondary Market
Edit
The content is sourced from: https://handwiki.org/wiki/Finance:Private_equity_secondary_market

In finance, the private equity secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of pre-existing investor commitments to private equity and other alternative investment funds. Given the absence of established trading markets for these interests, the transfer of interests in private equity funds as well as hedge funds can be more complex and labor-intensive. Sellers of private equity investments sell not only the investments in the fund but also their remaining unfunded commitments to the funds. By its nature, the private equity asset class is illiquid, intended to be a long-term investment for buy-and-hold investors, including "pension funds, endowments and wealthy families selling off their private equity funds before the pools have sold off all their assets". For the vast majority of private equity investments, there is no listed public market; however, there is a robust and maturing secondary market available for sellers of private equity assets. Buyers seek to acquire private equity interests in the secondary market for multiple reasons. For example, the duration of the investment may be much shorter than an investment in the private equity fund initially. Likewise, the buyer may be able to acquire these interests at an attractive price. Finally, the buyer can evaluate the fund's holdings before deciding to purchase an interest in the fund. Conversely, sellers may seek to sell interest for various reasons, including the need to raise capital, the desire to avoid future capital calls, the need to reduce an over-allocation to the asset class or for regulatory reasons. Driven by strong demand for private equity exposure over the past decade, a vast amount of capital has been committed to secondary market funds from investors looking to increase and diversify their private equity exposure.

private equity fund private equity long-term investment

References

  1. Evercore: Distressed sellers 1% of 2013 market volume PEI Media, 14 April 2014 http://www.secondariesinvestor.com/distressed-sellers-account-1-2013-secondaries-sales-2/
  2. Evercore: secondaries funds target $30bn PEI Media, 14 April 2014 http://www.secondariesinvestor.com/evercore-30bn-dry-powder-2014/
  3. The Private Equity Analyst Guide to the Secondary Market. Private Equity Analyst, 2004 https://wayback.archive-it.org/all/20090320131109/http://www.lakestreetcapital.com/media/2004gsm.pdf
  4. Source: Private Equity Intelligence
  5. The Private Equity Secondaries Market, A complete guide to its structure, operation and performance The Private Equity Secondaries Market, 2008 http://www.peimedia.com/productimages/Media/000/171/054/Sample_ContentsExtract_Secondaries.pdf
  6. "Escaping PE Purgatory Through A Secondary Sale." Buyouts, July 7, 2007 https://web.archive.org/web/20080123122008/http://www.buyoutsnews.com/story.asp
  7. "UK GPs: It’s spin-out time ." PrivateEquity Online, July 15, 2010 http://www.privateequityonline.com/Article.aspx?article=54587&hashID=24577A56484D7AE222CDC05638BCF6AEA49D7B20
  8. "Lehman to spin out European mezzanine unit." Financial Times, May 10, 2010 https://www.ft.com/cms/s/0/332a89ca-6102-11df-9bf0-00144feab49a.html
  9. "Fidelity spin-out doubles in size." Financial News, February 23, 2010 http://www.efinancialnews.com/story/2010-02-23/fidelity-canter-doubles
  10. Just closed a new fund and already an investor wants out?! Abe Finkelstein, Vintage, July 23, 2019] https://www.vintage-ip.com/blog/low-funded-secondaries-part-1
  11. Contrarian : Second Helping (Dealmaker, 2007) http://www.dealmakerdaily.com/magazine/article/12294.html
  12. "Europe’s 50 Most Influential in Private Equity 2019 - Slideshow - Private Equity News". https://www.penews.com/articles/europes-50-most-influential-in-private-equity-2019-20191204. 
  13. "Secondary sales of private equity interests ." AltAssets, February 18, 2002 http://www.altassets.com/casefor/sectors/2002/nz3269.php
  14. The Private Equity Analyst: PE Wire (Private Equity Analyst), February 24, 2003. http://www.eapdlaw.com/files/News/127ee263-57f7-49f9-95b6-7a3e7e4e52b7/Presentation/NewsAttachment/ccba08f5-a312-48dd-b0ea-7db36cba8c4d/media.181.pdf
  15. Cortese, Amy. "Business; Private Traders See Gold in Venture Capital Ruins." New York Times , April 15, 2001. https://query.nytimes.com/gst/fullpage.html?res=9406E7D81231F936A25757C0A9679C8B63
  16. *"Secondaries Getting Primary Attention." Buyouts, July 22, 2002 http://webcache.googleusercontent.com/search?q=cache:-mFAR8W4PFQJ:www.buyoutsnews.com/story.asp
  17. "Secondaries Pros Discuss Market's Evolution." Secondaries Pros Discuss Market's Evolution - Cont'd. Buyouts, December 16, 2002 http://webcache.googleusercontent.com/search?q=cache:CGG42Ho4vxUJ:www.buyoutsnews.com/story.asp
  18. Vaughn, Hope and Barrett, Ross. "Secondary Private Equity Funds: The Perfect Storm: An Opportunity in Adversity". Columbia Strategy, 2003.
  19. Rossa, Jennifer and White, Chad. Dow Jones Private Equity Analyst Guide to the Secondary Market (2007 Edition).
  20. A Secondary Market for Private Equity is Born, The Industry Standard, 28 August 2001 http://www.thestandard.com/article/0,1902,28821,00.html
  21. "Buyouts Still Dominate Surging Secondaries Market: Some Say Market Is Overcapitalized Fund-of-Join The Game." Buyouts, May 24, 2004 https://web.archive.org/web/20080123122008/http://www.buyoutsnews.com/story.asp
  22. Private Equity Market Environment: Spring 2004 , Probitas Partners http://www.circlepeakcapital.com/press/probitas_market_overview.pdf
  23. Cash panic sweeping VC industry: The capital calls problem VentureBeat, November 7, 2008 https://venturebeat.com/2008/11/07/cash-panic-sweeping-vc-industry-the-capital-calls-problem/
  24. MAC uncertainty grips sellers in secondary market Private Equity Online, November 3, 2008 http://www.privateequityonline.com/Article.aspx?article=31858&hashID=E60A575619F49956DF162051373826E8C346E859
  25. Secondary market set to break records, Private Equity Online, February 1, 2012 http://www.privateequityinternational.com/Article.aspx?article=65497
  26. Singapore’s GIC Said to Offer $700 Million in Buyout-Fund Stakes, Bloomberg, January 20, 2012 https://www.bloomberg.com/news/2012-01-20/singapore-s-gic-said-to-offer-700-million-in-private-equity-fund-stakes.html
  27. LGT Capital Partners announces final close of Crown Global Secondaries II plc . LGT Capital Partners, June 24, 2010 http://www.lgt-capital-partners.com/_news/en/CGS_final_closing?DCSext.nav_type=1
  28. Morgan Stanley beats target for $500m secondaries fund. Efinancial News, May 18, 2010 http://www.efinancialnews.com/story/2010-05-18/morgan-stanley-secondaries-fund
  29. Axa Private Equity Said to Seek More Capital for Secondary Fund. Bloomberg, February 1, 2012 https://www.bloomberg.com/news/2012-02-01/axa-private-equity-said-to-seek-more-capital-for-secondary-fund.html
  30. Credit Suisse Raises $2.9 Billion to Purchase Secondary Stakes, Business Week,February 14, 2012 http://www.businessweek.com/news/2012-02-15/credit-suisse-raises-2-9-billion-to-purchase-secondary-stakes.html
  31. European Secondaries Deal of the Year, 2012 Private Equity International, March 13, 2013 http://www.collercapital.com/News/Awards/2012/PE-International-European-Secondaries-Deal-of-the-Year.aspx
  32. Running From Megafunds, Wisconsin Sells $1B Portfolio. http://pevc.dowjones.com/Article?an=DJFLBO0020120830e88upfr1z&cid=32135011&ctype=ts&pid=15&ReturnUrl=http%3a%2f%2fpevc.dowjones.com%3a80%2fArticle%3fan%3dDJFLBO0020120830e88upfr1z%26cid%3d32135011%26ctype%3dts%26pid%3d15
  33. Swedish Länsförsäkringar to sell €1.5bn PE portfolio. Unquote PE, August 20, 2012 http://www.unquote.com/nordics/news/2199774/swedish-l-nsf-rs-kringar-to-sell-eur15bn-pe-portfolio
  34. Private equity secondary deal volume totals $36 bln: survey Reuters: PE Hub, DECEMBER 23, 2013 http://www.pehub.com/2013/12/private-equity-secondary-deal-volume-totals-36-bln-survey/
  35. Ryan, Dezember (April 24, 2014). "Bargain Bin Is Now Big Deal". WSJ. https://online.wsj.com/news/articles/SB20001424052702304788404579520063776851686. 
  36. Secondary volume goes through the roof Reuters: PE Hub, JANUARY 22, 2015 https://www.pehub.com/2015/01/secondary-volume-goes-through-the-roof/
  37. Setter Capital Volume Report 2014 Setter Capital, JANUARY, 2015 https://www.secondarylink.com/static/files/1a74e00f-a900-4ca5-b26f-8795cedbc5c8/5F/LD/319033a8a34c11e4ad4337daa525264d_Setter_Capital_Volume_Report_2014.pdf
  38. "Subscribe to read" (in en-GB). https://www.ft.com/content/2f844682-7507-11e7-a3e8-60495fe6ca71. 
  39. "GP-Led Secondary Transactions: A "New-Fashioned" Way of Achieving Liquidity". https://www.paulweiss.com/media/3977412/2oct17-pfs.pdf. 
  40. "Demystifying a Roaring Secondaries Market | Navatar" (in en-US). Navatar. https://www.navatargroup.com/webinar/demystifying-a-roaring-secondaries-market. 
  41. [1] . Crédit Agricole press release, December 16, 2011
  42. AXA Unit to Buy $1.7 Billion Portfolio From Citigroup. New York Times, June 8, 2011 https://dealbook.nytimes.com/2011/06/08/axa-private-equity-to-buy-citi-assets/
  43. Banks seen selling Private Equity assets, but not at any price, Reuters, July 19, 2011 https://www.reuters.com/article/2011/07/19/banks-privateequity-idUSL6E7IC1ZZ20110719
  44. AlpInvest picks up $800m in fund stakes from CalPERS. AltAssets, April 7, 2011 http://www.altassets.net/private-equity-news/by-pe-sector/secondaries/article/nz20496.html
  45. "Lexington Partners To Buy $730M Private Equity Portfolio From Lloyds ." Wall Street Journal, December 15, 2010. https://online.wsj.com/article/BT-CO-20101215-711124.html
  46. "Lloyds sells private equity division to Coller Capital." The Telegraph, July 6, 2010. https://www.telegraph.co.uk/finance/newsbysector/epic/lloy/7873731/Lloyds-sells-private-equity-division-to-Coller-Capital.html
  47. " http://www.financialpost.com/markets/news/Citi+Divest+Private+Equity+Fund+Funds+Investments+Businesses/3270599/story.html Citi to Divest Private Equity Fund of Funds and Co-Investments Businesses."Financial Post, July 13, 2010.
  48. "AXA buys $1.9 billion private-equity portfolio from BofA." Reuters, April 22, 2010. https://www.reuters.com/article/idUSTRE63L3I520100422
  49. "3i agrees VC asset sale with Coller, HarbourVest consortium." PEI Asia News, September 13, 2009. https://archive.today/20120907001222/http://www.peiasianews.com/Article.aspx?article=45850
  50. "PE Secondaries Alert." PE Secondaries Wire , November 2, 2009. http://www.dealflowmedia.com/alerts/pesecondaries/wires/archive.cfm?nd=110209
  51. "APEN Press Release ."APEN, October 27, 2009. http://www.aigprivateequity.com/downloads/e/Pressrelease271009.pdf
  52. "Goldman group snags ABN AMRO unit ." Pensions&Investments, August 12, 2008. http://www.pionline.com/apps/pbcs.dll/article?AID=/20080812/REG/553466536
  53. "Discount offered to offload ABN Amro's Secondaries". Penews.com. 2008-08-18. http://www.penews.com/magazine/news/content/2451547473. 
  54. "Macquarie Capital will spend $836m to go private ". The Australian, June 17, 2008 http://www.theaustralian.news.com.au/story/0,25197,23875026-643,00.html
  55. "Macquarie Capital soars on buyout plan ". The Sydney Morning Herald, June 16, 2008 http://business.smh.com.au/business/macquarie-capital-soars-on-buyout-plan-20080616-2rch.html
  56. CalPERs private equity stakes under microscope. Reuters 'Dealzone' November 20, 2008. http://blogs.reuters.com/reuters-dealzone/?uber-search=0&s=calpers
  57. Craig, Catherine. Five buy record $3bn Calpers portfolio. Financial News, February 5, 2008. http://www.efinancialnews.com/usedition/index/content/2449731094
  58. Tracy, Tennille. Calpers, and where private-equity funds go to die. Wall Street Journal's Deal Journal blog, November 5, 2007. https://blogs.wsj.com/deals/2007/11/05/calpers-and-where-private-equity-funds-go-to-die/?mod=WSJBlog
  59. Press Release: Coller International Partners V closes at $4.5 billion' http://www.collercapital.com/assets/html/pressrelease.html?ID=85
  60. "Lexington Capital Partners VI". Lexingtonpartners.com. http://www.lexingtonpartners.com/secondary_overview.html. 
  61. Primack, Dan (2007-04-03). "OBWC Portfolio Sale Nears End". Pehub.com. http://www.pehub.com/wordpress/?p=803. 
  62. Ohio Bureau of Worker's Compensation -- Review of Secondary Advisor Selection Process http://www.ohiobwc.com/downloads/blankpdf/OC/IC0806.pdf
  63. "Secondaries join the mainstream". Financialnews-us.com. http://www.financialnews-us.com/?page=ushome&contentid=2347723491. 
  64. "Dow Jones Financial News: Goldman picks up Mellon portfolio". Efinancialnews.com. 2007-01-04. http://www.efinancialnews.com/content/1046889374/. 
  65. "American Capital Raises $1 Billion Equity Fund; Expands Its Asset Management Business; Will Host 9 am Conference Call". PR Newswire. American Capital Strategies. 2006-10-04. http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/10-04-2006/0004444957&EDATE=. 
  66. American Capital raises $1bn fund . (AltAssets) http://www.altassets.com/news/arc/2006/nz9445.php
  67. ACS spins off stakes into $1B fund (TheDeal.com) http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1159926373249
  68. Singapore’s Temasek Hits Hard Going (Asia Sentinel, 2007) http://www.asiasentinel.com/index.php?Itemid=32&id=613&option=com_content&task=view
  69. Liquid Realty Acquires GBP 435 Million Real Estate Secondary Portfolio. Business Wire, May 3, 2006 https://archive.is/20120709210030/http://findarticles.com/p/articles/mi_m0EIN/is_2006_May_3/ai_n26848027/pg_1
  70. AlpInvest and Lexington Partners buy $1.2bn secondary portfolio from DPL (AltAssets) http://www.altassets.com/news/arc/2005/nz6329.php
  71. "M&A legal guru urges more diligence". Marketwatch.com. 2005-02-17. http://www.marketwatch.com/News/Story/Story.aspx?guid=&siteid=google&dist=google. 
  72. DPL to sell PE stakes for $850M (TheDeal.com) http://www.thedeal.com/servlet/ContentServer?pagename=TheDeal/TDDArticle/TDStandardArticle&bn=NULL&c=TDDArticle&cid=1107993038709
  73. Lexington Partners Buys Merrill Lynch Portfolio. Private Equity Analyst, April 2005 (p.10) http://www.docstoc.com/docs/13420/Private-Equity-Dow-Jones-April-2005
  74. Press Release: Abbey sells private equity portfolio to Coller Capital http://www.collercapital.com/assets/html/pressrelease.html?ID=10
  75. Pantheon acquires Swiss Life private equity portfolio . AltAssets, 2004 http://www.altassets.com/news/arc/2004/nz5552.php
  76. https://www.themarker.com/misc/1.219782
  77. Name A-D E-J K-P Q-Z. "HarbourVest transactions". Harbourvest.com. http://www.harbourvest.com/Investment_strategy/secondary.htm. 
  78. MidOcean Embraces Independence. Financial Times, March 9, 2003 https://www.questia.com/library/1G1-100750998/midocean-embraces-independence
  79. "The evolution of private equity secondary activity in the United States: liquidity for an illiquid asset" (PDF). http://www.probitaspartners.com/pdfs/routes_to_liquidity.pdf. 
  80. Press Release: Lucent Technologies and Coller Capital form independent venture firm to manage Lucent's New Ventures Group portfolio http://www.alcatel-lucent.com/wps/portal/NewsReleases/DetailLucent?LMSG_CABINET=Docs_and_Resource_Ctr&LMSG_CONTENT_FILE=News_Releases_LU_2002/LU_News_Article_004541.xml
  81. Press Release:The Royal Bank of Scotland: asset sale http://www.collercapital.com/assets/html/pressrelease.html?ID=2
  82. Lehman Brothers acquired The Crossroads Group in 2005
  83. Cawley, Rusty "Crossroads uses EDS portfolio to launch fund." Dallas Business Journal, September 24, 1999 http://dallas.bizjournals.com/dallas/stories/1999/09/27/story8.html
  84. "Newbury Partners Promises To Keep A Secret." Buyouts, August 20, 2007 http://webcache.googleusercontent.com/search?q=cache:7GzCZ1GrgO8J:www.buyoutsnews.com/story.asp
  85. Pantheon Ventures: Secondary Investments . Company Website http://www.pantheonventures.com/investment-strategies/secondary
More
©Text is available under the terms and conditions of the Creative Commons-Attribution ShareAlike (CC BY-SA) license; additional terms may apply. By using this site, you agree to the Terms and Conditions and Privacy Policy.
Upload a video for this entry
Information
Subjects: Economics
Contributor MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
HandWiki
View Times: 3.7K
Entry Collection: HandWiki
Revision: 1 time (View History)
Update Date: 28 Sep 2022
Table of Contents
    Notice
    You are not a member of the advisory board for this topic. If you want to update advisory board member profile, please contact office@encyclopedia.pub.
    OK
    Confirm
    Only members of the Encyclopedia advisory board for this topic are allowed to note entries. Would you like to become an advisory board member of the Encyclopedia?
    Yes
    No
    ${ textCharacter }/${ maxCharacter }
    Submit
    Cancel
    There is no comment~
    ${ textCharacter }/${ maxCharacter }
    Submit
    Cancel
    ${ selectedItem.replyTextCharacter }/${ selectedItem.replyMaxCharacter }
    Submit
    Cancel
    Confirm
    Are you sure to Delete?
    Yes No
    Academic Video Service
    Feedback