The secondaries market, which deals in the buying and selling of secondhand shares of private funds, is booming, with projected growth to $220 billion this year from a record $160 billion last year. This surge is primarily driven by large institutions seeking liquidity as distributions from private equity funds have been slow. Industry experts, like Verdun Perry from Blackstone, believe that this growth will continue regardless of market conditions, highlighting a significant evolution in the secondary market over the last two decades. Business Insider also showcases key power players within this rapidly expanding sector.
The buying and selling of secondhand shares of private funds, known broadly as secondary investing, soared to a record $160 billion last year.
The market for secondary investing is expected to grow to $220 billion this year, a nearly 40% jump from last year, according to industry expert Verdun Perry.
Investors are now motivated to sell after more than three years of relatively slow distributions from private equity funds.
Notably, one-off secondary deals of $1 billion to $2 billion have become commonplace compared to twenty-five years ago.
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