News Digest:

Limited Partners offered more and sold less in the ‘secondaries’ market deals last year while the LP portfolio sales overshadowed GP-led processes including single asset continuation funds for the first time since 2019, says Jeffries in a report.

Total secondaries volume stood at $108 billion, which was lower than the $132 billion recorded in 2021. In spite of the slowdown, 2022 remained the second busiest year on record for the strategy and volumes could have matched those of a year ago but for the constant decline in prices as the year progressed.

Meanwhile, market dynamics helped push LPs centerstage with about $56 billion in volumes as institutions dealt with overexposure to this asset class. They also contended with diminishing distributions that resulted in decelerating the exits from GPs.

Takeaway:

The Jeffries report says market professionals are anticipating a record year in 2023 due to pent up demand that would potentially burst through pricing hesitations.

End Notes

Source: https://www.secondariesinvestor.com/as-capital-calls-outpace-distributions-lp-secondaries-take-center-stage-jefferies/