2018 Prices Expected to Remain High in Secondary Private Equity Markets Worldwide

NEW YORK, Nov. 2, 2017 /PRNewswire/ -- Industry leaders in alternative assets discussed valuation and risk trends in the secondary private equity markets for interests in private equity funds and shares in venture-backed private companies worldwide at the recent NYPPEX Roundtable Webinar. 

Guest speakers included Raj Marphatia, Partner, Ropes & Gray (Palo Alto, CA); Anthony Shontz, Managing Director, Partners Group (Denver, CO); Justin Burden, Managing Director, Industry Ventures (San Francisco, CA), Ricardo Miro-Quesada, Chief Investment Officer, Arcano Partners (Madrid, Spain); Fabrice Moyne, Partner, Mantra Investment Partners (Paris, France) and Jon Noble, Partner, Montgomery & Hansen (Menlo Park, CA). 

The Webinar was moderated by Laurence Allen, Managing Member, NYPPEX Private Markets (Rye Brook, NY) and attended primarily by portfolio managers at financial institutions, pension funds, asset managers, insurance companies, endowments, foundations, family offices as well as executives from alternative investment firms and private companies worldwide.

"Historical data for the S&P 500 since 1964 shows that 10-year annualized returns have averaged only 4.5% when forward P/Es are 17.9x, today's multiple. In general, our speakers agree that secondary private equity prices appear high in the 4Q2017 and we're currently in a seller's market," stated Laurence Allen, CEO, NYPPEX.

Highlights included:

• "In 2017, there has been a significant increase in secondary offerings from emerging market-based private equity funds, including GP-led transactions," stated Ricardo Miro-Quesada, CIO, Arcano.

• "Given current high secondary prices and outlook uncertainty, purchase price deferrals in secondary sales of fund interests is a common mechanism to resolve price disputes," stated Raj Marphatia, Partner, Ropes & Gray.

• "Secondary prices are likely to remain high into 2018, unless there is a macro event that corrects the markets," stated Anthony Shontz, Managing Director, Partners Group.

• "Unrealized value in older tail-end funds is increasingly being addressed by general partners and limited partners. Today, private equity funds aged 15+ years old comprise 26% of private equity funds worldwide vs. 16% in 2013," stated Laurence Allen, CEO, NYPPEX.

• "Secondary direct deal structures in 2017 continue to include return-sharing formulas when there is disagreement on price, stated Jon Noble, Partner, M&H.

• "In 2017, secondary transaction volume increased in niche sectors such as timber, life insurance settlements and emerging markets given their attractive risk/return profile, stated Fabrice Moyne, Partner, Mantra.

For additional quotes, please contact:                               

Robin Bond
Senior Vice President 
NYPPEX Private Markets
+1 (914) 305 2808 
[email protected]

About NYPPEX Private Markets

NYPPEX operates a leading platform to transfer interests in private equity funds, securities in private companies and their respective derivative instruments. Its services are utilized by financial institutions, alternative investment firms, private companies, institutional investors and private wealth advisors.

NYPPEX has provided secondary private equity market liquidity from investor's in over 26 countries.

Since 2004, the NYPPEX QMS™ has been recognized by the U.S. I.R.S. as a Qualified Matching Service for private partnerships under Internal Revenue Code §1.7704. Member FINRA and SIPC. www.nyppex.com.

2017 Copyright. NYPPEX Holdings, LLC.                 

SOURCE NYPPEX Holdings

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