Morning!
What’s on tap today?
Talking with a lot of secondaries folks about how the year is wrapping up. While it seems GP-led deals like single-asset processes continue to flood the market, buyers have turned their attention to traditional LP portfolio sales, which are back in force after a slowdown.
Large portfolios have hit the market from public pensions like New York State Teachers Retirement System, State Teachers Retirement System of Ohio, Pennsylvania Public School Employees’ Retirement System and Harvard Management Co. (And there’s a lot more that we’re still trying to dig up).
There’s still a sense that sellers are bringing huge portfolios to the market if only to sell parts of it, or even simply to test pricing with the idea of pulling back the offering and waiting for a better opportunity. Pricing, though, is rich, with the average high bid for buyout funds at 96 percent of NAV in the first half. Read more here.
Buyers expect there will be more than a few GP-led deals that get hung up, fail or just take a much longer time to close because of the sheer volume in the market. The main problem is a lack of capital, and personnel, to execute all the opportunities.
Secondaries is expected to hit, for the first time, $100 billion in total transaction volume this year. The industry is only slowly catching up to that crush of deals.
What are you seeing? Hit me up at [email protected].
Read the full wire commentary on PE Hub...
