Secondary Sales Signal a Coming Crisis?
At the end of 2009, Reuters Buyouts sought to answer whether primary fundraising would suffer as a result of secondary market investments in its "Secondary Market Threatens To Use Up All The Oxygen" piece. It didn't work out that way. During the credit crisis, limited partners faced few capital calls, and if anything, secondary sales froze up along with markets everywhere. But as secondary sales become increasingly common, the prospect of future fundraisings being impacted grew. I got to thinking about this after New York secondaries firm Lexington Partners Inc. announced a deal Wednesday to buy a PE portfolio worth £470 million ($730 million) from Lloyds Banking Group.
16 December 2010•3 mins read
