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Investors leaked recorded private equity stocks last year, as the drought of long -term trading negotiations has begun to find another method of cashing investment funds, so the investors leaked recorded private equity shares to used markets last year. I let you do it.
In the so -called distribution market, an investor of private equity and other private funds sells its own stocks to new investors to get cash, and fund managers sell corporate shares to new funds. Transactions around the market have reached $ 162 billion.
According to an analysis of the investment bank Jeffreies, the total amount increased by 45 % year -on -year and was more than 20 % higher than the previous peak in 2021.
The Secondary Deal has grown rapidly in recent years, as private equity companies have a sufficiently attractive valuation to withdraw their investment through IPOs and sales, and as a result, the funds are not distributed to the fund’s supporters. There is.
Fund investors (“Limited Partners” or LP) are a private equity company that is trying to find stock buyers by looking at the distribution market instead (“General Partner” or GP). ) Is also looking for another method. To cash investment.
According to Scott Beckelman, a Global co -manager of Jeffreze’s Secondary Advisory, said, “The record of last year’s secondary trading volume was low in (cash) distribution when many LPs were seeking fluidity. It was brought by that. “
According to Jeffreze, both Limited Partners (often the pension funds, funds, Sobulin Wealth Investors, etc.) and General Partners sold records in the distribution market last year.
Limited partner has been active in a pandemic shortage of transactions and has become too heavy to recover the funds and has become too heavy, and has been rushing to rebalance the portfolio, and is 36 % exceeding the record high in 2021. Sold the shares. For private equity.
Investors in funds usually sell their own shares at a discounted price, but according to Jeffreze, the difference from the net asset value of the baewout fund stock is 9 % of the previous year and to 6 % last year. It is said that it has shrunk.
Jeffreze is confident that while Wall Street is preparing for the resumption of transactions under the second Trump administration, the price increase will be able to sell a basic portfolio company in the near future. He said he was showing.
In recent years, the acquisition fund has been fighting in both Europe and the United States with powerful antitrust regulatory authorities. However, the vigilance of the major competitive authorities in the United States, the EU, and the United Kingdom may function as a preparatory battle for a more free -to -leave approach to merging and acquiring, and can help to promote withdrawal.
After the launch of a new fund specializing in purchasing used stocks for private bond funds, the price of the private credit fund’s stocks rises further from the price of the bio -out vehicle, increasing from 77 percent of the asset value to 91 %. did.
The price of real estate and venture shares remained slightly low, 72% and 75% of the value of the original assets.
According to Todd Miller, a global co -co -government of Jeffrey’s Secondary Advisory Division, “The LP has not been distributed from venture portfolios far beyond 24 months.” There are many. “
Civil capital companies also focused on the distribution market, and General Partners sold $ 75 billion in 2024, up 44 % year -on -year.
The majority of $ 63 billion, the manager sold assets to a new fund managed by the same company, a so -called continuation means.
Continuing vehicle is a common choice for private equity companies to return funds to one fund investors without finding the buyer of the entire portfolio company. This is especially true when such a sale does not obtain an advantageous evaluation for the operating company.
People who are familiar with the circumstances that the European private equity company EQT held last year was related to the relocation of holding shares between EQT funds. All three were also participating in external investors.
