Another record year for PE secondaries amid more GP-led transactions

This year is shaping up to be another record year for private equity secondary market activity, globally. Already, worldwide secondary market transactions for the first six months of 2019 has been estimated at nearly 900 transactions, worth some $46 billion.

And the market is expected to continue growing, said Jeff Akers, Partner and Head of Secondary Investments at Adams Street Partners, a private markets investment firm. “The largest driver continues to be the increased acceptance of the private equity secondary market as a portfolio management tool,” Akers told DealStreetAsia.

“With average market prices in the mid to high 90s for buyout funds, primary fundraising growth over the last 5-7 years, and LPs looking to actively manage their portfolios, the ingredients are all there for continued secondary market growth.  This has only been enhanced in recent years by growth in the GP-led market, which now accounts for nearly a third of the total market volume.”

Adams Street, which has $40 billion in assets under management, has been investing in secondary transactions for 33 years. In their observation, North America, as the world’s most mature private equity market, continues to be the largest source of deal flow in the market. At the same time, the type of transactions that have seen the most active growth has been GP-led.

“GPs are organising secondary transactions late in a fund’s life to allow investors a liquidity option, and to extend the life of assets they deem to need additional time to maximize value,” Akers said.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.