Chart of the Week: Secondaries market

Consistent fundraising for secondaries highlights strong LP sentiment  

411 

 

Click here for a larger version

 

The capital collected for secondary funds reached a six year high in 2013, when $22.2 billion was raised by 23 funds at final close. Dover Street VIII and Goldman Sachs' Vintage VI were among the top funds to close in the year collecting $3.6 billion and $3.4 billion respectively. Many LPs committed to such funds with The West Yorkshire Pension Fund allocating capital to both funds.

 

In 2012, 20 secondary funds closed collecting $21.9 billion – more than double the total raised in 2011. AXA Secondary Fund V was the largest fund to close in the year securing double its target of $3.5 billion. Elo Mutual Insurance Company, Caisse de Depot et Placement du Quebec and Schindler Pensionkasse all committed to the fund.

 

Hefty portfolio sales from large LPs have helped to maintain a buoyant secondaries market. For example, at the start of the year, Lexington Partners agreed to purchase €800 million worth of private equity fund interests from the Irish National Pension Reserve Fund. The deal will include at least 24 funds from managers including TPG Capital, CVC Capital Partners and Providence Equity Partners.

 

PEI has just launched a new website dedicated to secondaries. Visit www.secondariesinvestor.com for more news, commentary, and research.