A Palico survey of limited partners who’ve successfully purchased stakes in private equity funds on the secondary market over the last six months indicates the current sweet spot for premium pricing (in relation to net asset value) is for vehicles that began investing in 2011. That vintage accounts for five of 13 funds priced at par or better.
Daniel Benin is managing partner and co-founder of Committed Advisors, a manager of private equity secondary funds with €1.7 billion in assets. He explains why Palico’s digital marketplace adds value to traditional ways of doing business in private equity.
Out of the 1,175 private equity fundraisings on Palico’s marketplace offered by members, slightly more than a quarter have data rooms enriched with documents (including everything from releases on specific acquisitions and fundraising milestones to highly detailed private placement memorandums). On average, data rooms with documents have attracted 7 access requests from accredited investors over the past month versus an average of 2 requests over the same period for data rooms that contain no documents.