The long existing, lately developing private equity secondary market appears to have been experiencing an increase in interest recently. As more players and liquidity come to the market, more deals and LP’s looking to either raise capital or reduce private equity exposure are met with buyers at this would be financial sample sale. Attracted by discounted prices, of late the space has been reminiscent of the closed-end fund market which has traditionally traded at a discount to NAV. The market has now come alive. As financial markets and economies have stabilized in the interim so has the asset class. With the market supporting more active buyers than sellers it appears that an effective valuation bottom has been reached in the space. Perhaps the best 'deals' are likely to have come and gone and sellers are no longer in such dire shape as the ground beneath the overall asset class has firmed. However, similar to the real estate market, there is also another dynamic at play. As those NAV’s plummeted some sellers simply pulled offerings if they weren’t in a situation where they were forced to sell. There are still numerous offerings in the wings. As these sellers return back to the a market with more natural buyers they are likely to see more 'fair' bids, albeit still at discounted levels.
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