'A buyer's market': What is behind the fanfare for private equity secondaries?

Ares and Ardian unpick the trend

Valeria Martinez
clock • 4 min read

Once a niche market, secondary private equity has become a more mature asset class and one of the few viable routes to liquidity for private equity funds, especially in a challenging M&A backdrop and dry IPO market.

With the FTSE 100 up less than 1% last year and the S&P 500 down 18%, according to data from MarketWatch, one constraint facing private equity investors, also known as limited partners (LP), is the so-called denominator effect, triggered by the decline in public asset valuations.  Because their holdings of private assets exceeded the allocations allowed under their mandates, some LPs have been forced to reduce their investments in private fund managers, or free up cash through secondary sales of their fund stakes. After a record year for secondary transactions in 2021 ($130bn), the ma...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Alternatives

Sarah Miller (pictured), senior vice president Redington's manager research team

Redington's Sarah Miller: How retail investors can approach real assets implementation

Liquid vs illiquid markets

Sarah Miller
clock 23 November 2023 • 4 min read
Blackstone Diversified Multi-Strategy sought to provide investors with a diversified blend of alternative strategies and hedge fund managers in a single daily liquid UCITS fund.

Blackstone to close multi-strategy fund as assets tumble 90%

Diversified Multi-Strategy fund

Valeria Martinez
clock 21 November 2023 • 1 min read
The fund is the latest addition to Pantheon's $7bn global private wealth platform, which offers a range of evergreen fund solutions, including the $2.4bn AMG Pantheon fund: Credit: iStock

Pantheon expands wealth offering with launch of open-ended private equity fund

Subscriptions starting at $25,000

Valeria Martinez
clock 13 November 2023 • 1 min read