The secondaries market, the market to buy and sell limited partner stakes in private equity funds, has experienced significant growth since the 2008 financial crisis, reaching the $42-billion-mark in 2011 and leveling off at $37 billion last year, according to FundFire. Delegate Advisors CEO Bob Borden recently commented to the publication on this maturing and increasingly segmented market and what the future may hold for it.
“Despite the growth, what there may not be in the long run is many new entrants to the space,” Borden tells FundFire. “Secondaries deal activity favors firms that have built longstanding relationships in the market with brokers, institutional investors, placement agents, and the general partners of funds whose stakes are being sold, which typically have to give approval for sales within their funds.”
“I don’t think you get crowded away quickly in this market,” Borden summarizes.
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