Secondary Market Now Driven by Mega-Funds, Not LP Liquidity
Secondary sales of private equity stakes are largely a mega-fund activity, according to Todd Glasson of InvestorFlow, which provides a qualified matching service (QMS) platform and other investor relationship management services. He predicts a continued increase in secondary sales next year from the largest buyout firms but said QMS activity has not trickled down into the middle market. A number of large buyout firms have implemented captive QMS operations to support general partners in the sale processes and allow the firm to increase safe harbor limitations on the percentage of the fund that can change hands in a given year from 2% without a QMS to 10% with one.
22 October 2009•2 mins read
