Global secondaries deal flow set to break record - Cogent

In its semi-annual secondary market pricing study released this week, Cogent predicted a 10% year-on-year increase on transaction volume for 2013. It also found that the average high bid across all strategies increased to 93% of net asset value (NAV) during the six-month period ending June 2014.

Buyouts were particularly popular, with the average high bid increasing to 100% of NAV - the first time any strategy has priced at or above NAV since 2007. A smaller increase in pricing was seen across other strategies: real estate and venture funds had average high bids of 92% of NAV and 82%of NAV, respectively.

Speaking of the impact of pricing on market participants, Stephen Sloan, managing partner at Cogent, said: "More than ever before, we are seeing limited partners opportunistically access the secondary market as they seek to divest non-core assets at premium pricing. Sophisticated LPs are viewing the secondary market as a way to capture the recent write ups in their private portfolios and de-risk a portion of their holdings."

He added that on the buy-side - in the context of the high level of market volume - buyers were being selective on where they spend their time, choosing to bid most aggressively on select assets where they feel they have the strongest insight.

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• Advisory
• LPs
• Secondaries
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