Cogent: deal volume and pricing fell in 2015

Transaction volume slipped to $40 billion, lower than the record $42 billion for 2014, according to the advisory unit’s Secondary Market Trends and Outlook January 2016 report.

Secondaries deal volume and pricing both dropped last year amid a decrease in the number of deals over $1 billion and tough macroeconomic conditions,Secondaries Investor reports.

While 2015 was the second most active year in secondaries ever, transaction volume slipped to $40 billion, lower than the record $42 billion for 2014, according to Greenhill Cogent's Secondary Market Trends and Outlook January 2016 report.

Deal volume and pricing levels are expected to remain the same this year, the report noted. Traditional limited partnership fund interests accounted for about $32 billion of deal volume, with GP-led transactions, which include direct secondaries, fund restructurings, recapitalisations, spin-outs and tender offers, among others, accounting for the rest.

Pricing for secondaries stakes in the second half of last year fell to an average 88 percent of net asset value (NAV) as volatility in global equity and commodity markets, combined with peak 30 June valuations, drove pricing down from its 92 percent average in the first half of the year.

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