NYPPEX: Private Equity Cash Distributions Decline 20-75% in the 1H2016

​NYPPEX, a technology-driven financial services company that provides secondary private equity market liquidity, has just released its 2016 Midyear Secondary Private Equity Market Trends and Valuation Report.

Its findings included the following:

1. Secondary transaction volume increased significantly in the 2Q2016 and resulted in approximately $15.7 billion for interests in private equity funds worldwide for the 1H2016. Activity was driven by stability in stock and commodities prices, better than expected net asset values as of December 31, 2015 and strong investor demand.

2. Secondary “high” bid prices increased approximately 0.24% to 103.94 (% of NAV) for U.S. private equity funds as investors sought safe havens; however, declined 0.33% to 96.35 on average for European private equity funds driven by economic growth uncertainty.

3. Cash distributions from private equity funds declined 20-75% in the 1H2016, driven by 40%+ declines in IPO capital raised in the US, Europe and Asia Pacific regions accompanied by a significant volume of failed merger & acquisition deals.

To request a copy of the NYPPEX 2016 midyear report, please email [email protected] with your name, title and organization. Note: All information as estimated by NYPPEX.

ABOUT NYPPEX

NYPPEX is a technology-driven financial services company that provides secondary private equity market transfer administration, trading, advisory and portfolio valuation services for alternative assets worldwide. NYPPEX has provided over $8 billion in secondary private equity liquidity to investors in 26 countries. We provide access to the secondary private equity markets for (a) interests in private funds (e.g. buyout, venture, natural resources, real estate, hedge funds etc.), (b) unregistered securities in private (and listed) companies and (c) their respective derivative instruments.

Our services are provided to alternative investment firms, private companies, governments, financial institutions, custodians, corporations, private wealth management groups and their advisors worldwide.

For more information, please contact [email protected] or:
Robin Starr Bond, SVP, NYPPEX
[email protected]
+1.914.305.2808

Source: NYPPEX

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Tags: market liquidity, market trends, secondary private equity