TPG, Apax and CVC most sought after funds

Permira, PAI, Altor and BC European Partners were also in high demand according to a Cebile study

CVC Capital Partners, Apax Partners and TPG Capital funds were the most sought after secondaries in 2014, according to Cebile Capital, a firm that advises buyers and sellers of private equity secondary stakes.

The firms were in the top three in Cebile’s Most Demanded Secondaries 2014. The list assesses the secondaries market demand for both the US and European buyout funds.

Cebile compiled the list by measuring how easily a firm’s funds would trade on the secondary market, based on the interest level and demand from secondaries buyers. Cebile then rated the demand in the secondaries market for fund managers as “high“, “medium“ or “low.“ Secondary buyers included dedicated secondaries funds, fund of funds and institutional investors.

Reflecting improved appetite for secondaries investment, 75 percent of the funds in the top 30 list achieved a demand rating of ‘high’. Thirty-seven percent of the private equity managers on the list were headquartered in Europe while the rest were based in the US.

As well as Apax and CVC, LP stakes in Permira, PAI Partners, Altor and BC European Partners were also in high demand in Europe. After TPG, the most popular US GPs included Bain Capital, Apollo Global Management, The Carlyle Group, New Mountain Capital and Water Street.

“The market for investment in global secondaries funds improved substantially in 2014, reflecting a growing level of comfort amongst investors,” Sunaina Sinha, managing partner of Cebile Capital, said in a statement.

Total secondaries transaction values rose to a record high in 2014, reaching approximately $40 billion worldwide in 2014, while the total raised for secondaries funds grew to approximately $60 billion, according to Cebile.

To see the full Top 25 of most demanded Secondaries of 2014, visit our sister title Secondaries Investor