Clayton, Dubilier & Rice, Waterland Private Equity Investments and CVC Capital Partners topped a list of a dozen firms whose funds sold at premiums to net asset value in the six months to mid-August.
Stakes in CD&R’s 2008-vintage Fund VIII traded at the biggest premium at 115 percent of NAV, according to a list compiled by online private marketplace Palico. According to list, which looked at 25 transactions Palico had deal data for, interests in 12 of those funds traded at a premium.
The average fund stake traded at 99.7 percent of NAV.
“Low discounts are definitely a reality, and are here to stay with the increasing efficiency in the secondaries market,” Daniel Dupont, managing director at Northleaf Capital Partners, noted in a guest commentary published in July in secondary publication Secondaries Investor.”Having said that, seeing hefty discounts as the only way to superior returns is a myth. One should never fear paying the right price for a quality portfolio, even at par or premium.”