03 │ 2023 market activity analysis
LP-led secondary volume represented just over half of the total deal volume completed in 2023.
Transaction breakdowns
- LP-led transactions represented 51% of total transaction volume in 2023 compared to 50% in 2022. Demand for LP portfolios has been high, but the supply side of the equation has been the constraining factor due to a pricing gap between buyers and sellers, something which played out for most of the year.
- Despite a declining share of the market for GP-leds, absolute volumes grew by $2.3 billion. The volume of transactions coming to market has been high, but the market has been more discerning and has suffered from undercapitalization.
- Preferred equity transactions have become an important part of the market, but fell 2 percentage points as a share of total volume in 2023 from the previous year. The desire for structured solutions waned in 2023 as the cost of capital for preferred equity rose, resulting in prospective liquidity seekers pulling back or choosing to explore an outright sale of assets instead.
Transaction type by volume, 2023
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