Sales volume and pricing for secondhand private-market assets surged in the first half, the latest sign of investors’ hunger for alternative investments as the economy continues to rebound from its pandemic-induced slump.
The first six months of the year saw $48 billion in secondary sales of private funds, including private equity, venture capital, private credit, real estate and other types of vehicles, according to a report from Jefferies LLC, an investment bank that advises clients on secondary transactions.
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Earlier this year, Verdun Perry, Blackstone’s global head of strategic partners, sees the secondary market surpassing $100 billion in 2021 and says returning employees to offices is “great for the economy,” he says in an interview with Bloomberg.
Sources have told us that Blackstone is in talks for more than 15 billion dollars in new funds tied to secondaries. “Investors are looking at this market where we provide liquidity to an otherwise long term illiquid asset class and this market has grown significantly. Twenty years ago this market was roughly one point five billion of volume annually. This year we expect the market to surpass 100 billion for the very first time. And so when you think about what this market really does it provides a service to investors that want to get out of a long term asset class.” Verdun Perry, the Blackstone global head of strategic partners , stated about the secondaries market.
Source: Wall Street Journal
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