QMS Firm Estimates 20% of Funds Have Already Maxed Out On Secondary Sales for 2009
As you may remember, private equity firms need to be careful about the amount of secondary exchanges between their investors. If a firm exceeds 2%, a set of mildly draconian rules require it to register as a public partnership. As explained in a previous blog post, a firm can see up to 10% trade if it uses a qualified matching service, or QMS. With all eyes on the secondary market, it’s no surprise that QMS service providers have seen an uptick in business. Lawrence Allen, a managing member of QMS provider NYPPEX, estimates that 20% of all buyout funds have already hit their 2% target for this year. Meanwhile, he predicts that number will increase to 50% by June.
30 March 2009•3 mins read
