Secondaries: firms and FoFs sell more

Traditional secondaries buyers are increasingly selling on the secondaries market to actively manage their portfolio.

Secondaries firms and funds of funds have typically held investments to maturity and waited until their funds wind down, but this is changing. They are now actively selling funds when they see they can lock in value and return liquidity to their investors or reinvest that cash without having to draw down capital from limited partners.

“Traditional secondaries buyers are beginning to sell more,” Rudy Scarpa, a partner with Pantheon told Secondaries Investor. “They’re becoming more proactive portfolio managers rather than waiting to wind down their assets over time.”

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