The volume traded on the secondaries market is expected to fall this year as public market unpredictability and macroeconomic conditions lead to widening bid/ask spreads for stakes, Secondaries Investorreports.
Respondents to Cebile Capital‘s Secondaries Outlook Report said they expect deal volume for secondaries to fall to a range between $37 billion and $40 billion due to volatility in the equity markets, the collapse in energy prices and the slowdown in the emerging markets.
“In a falling market, buyers are more careful [about paying] the top-most price they possibly can,” Sunaina Sinha, managing partner at Cebile, told Secondaries Investor. “They’re going to go towards conservative scenarios and will want a cushion because they don’t want to pay high pricing, par or premiums in a falling market.”
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