Secondary Transaction Volume Continues at Record Pace for Private Equity Funds and Companies Worldwide
RYE BROOKE, NY / ACCESSWIRE / July 24, 2018 / NYPPEX, a leading platform for secondary private equity transfer administration, announced in their 2018 midyear report that global secondary private equity transaction volume continued at a record pace for the 6 month period ended June 30, 2018.
"This data illustrates the trend for private equity investors to seek exits via the secondary markets as M&A and IPO volumes remain weak," stated Laurence Allen, Managing Member, NYPPEX.
The NYPPEX 2018 midyear report includes the following highlights:
For secondary LP interests in private equity funds:
Secondary transaction volume increased 7% to $22.1 billion in the 1H2018 as compared to $20.6 billion in the 1H2017.
Secondary volume was driven by (a) several large portfolio transactions and (b) a highly active 2nd quarter compared to a quiet 1st
"For the 2H2018, NYPPEX estimates that secondary volume in private equity funds will increase 12% as compared to the 2H2017, and that 2018 will set another record year," stated Laurence Allen, Managing Member, NYPPEX.
NYPPEX expects secondary LP interest volume is being driven by widely divergent views about future market conditions causing investors to actively rebalance portfolios.
For shares in private-equity backed private companies:
Secondary transaction volume increased 16% to $13.8 billion in the 1H2018 as compared to $11.9 billion in the 1H2017.
Secondary volume was driven by (a) an estimated 27% decline in M&A and IPO exit volumes to $715 billion in the 1H2018 vs $979 billion in the 1H2017, causing GPs and shareholders to create exits via the secondary markets and (b) higher confidence in venture fund's valuations, enabling more buyers and sellers to agree on price.
"For the 2H2018, NYPPEX estimates that secondary volume in private companies will increase 18% as compared to the 2H2017, and that 2018 will set another record year, stated Laurence Allen, Managing Member, NYPPEX.
NYPPEX expects secondary share volume in private companies to be driven by greater demand and higher bids as secondary buyers seek higher returns from direct investments.
To purchase the report for $495 or for further information or quotes, please contact:
Frank Nunziato, Vice President
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NYPPEX is a leading platform for secondary private equity transfer administration of interests in private equity partnerships, securities in private companies and their respective derivative instruments.
NYPPEX serves general partners, limited partners, private companies, shareholders and their advisors worldwide. Its hallmarks are transaction speed, price execution, low cost and regulatory compliance.
NYPPEX has provided billions in secondary private equity market liquidity with investors located in over 26 countries.
Since 2004, the NYPPEX QMS™ has been recognized by the U.S. Internal Revenue Service (through private letter ruling PLR-111165-04) as a Qualified Matching Service for private partnerships under Internal Revenue Code §1.7704. Member FINRA and SIPC. www.nyppex.com.
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SOURCE: NYPPEX Holdings, LLC