Published Secondary Prices Are “Stale;” Venture Worse-Off Than PE
Forget everything you’ve read about secondary prices, as it is “at worst stale, at best a fantasy,” according to a study released today by secondary intermediary Cogent Partners. (Download after the jump) The findings are disheartening for any hopeful investor with stakes in the market and very exciting for buyers of distressed LP stakes. The average high bid for buyout and VC secondary assets declined to 61% of NAV in the second half of 2008, compared with the first half, the study says. Notably, the drop marks the lowest level for secondary prices since 2003, since it’s on the heels of an 84.7% decline in the first half of 2008.
5 January 2009•2 mins read
