Secondary Market Notebook
Last Friday, I participated in a secondary investing conference, hosted by DealFlow Media. My piece was a 20 minute Q&A (I gave the A's, which was a refleshing change of pace), but I also watched some of the panel discussions and had a few takeaways: * The secondary market’s stickiest wicket continues to be the gap between buyside and sellside pricing expectations. Rather than trying to bridge the divide, it would appear that both sides are calcifying – believing that the other will cave. For buyers, that means banking on a theory that increased capital call volume will push some LPs over the line from liquidity-parched to liquidity-desperate. Sellers, on the other hand, counter that an increase in capital calls is likely to be coupled with an increase in distributions, which could help them maintain an even keel.
