Cogent Partners has released a mid-year report and summary concerning pricing and outlook in private equity secondaries. It’s mainly looking at North American funds (81%) with a fund type breakdown of: 54% Buyouts, 31% Venture, and 15% being the ever mysterious “other”.
Unless you’ve been living in isolation on the top of a mountain peak (and after the events of the past ten days that may not be such a bad idea), you’ll know that Private Equity deal-making has been on the slow slide thanks to the credit crunch and it’s banking repercussions.
While Cogent found the pricing for secondary deals to be strong through the second half of 2007, the first half of 2008 has seen pricing fall inline with the declines in public equity values, when adjusted for inflation (no real surprise there). The average high bid for all secondary transactions stated as a percentage of net asset value fell to 84.7%. Prices overall are at their lowest levels since 2003.
- Cogent Partners’ Mid-Year 2008 Secondary Market Pricing and Outlook: Pricing Declines with Public Market Drop