H1 2023 market activity analysis

Secondary transaction volumes in the first half of the year fell over 24% YoY to $40 billion. This mirrored the slowdown in global private equity investing, fundraising, and exits brought on by tighter credit conditions and macro uncertainty.
While dollar volumes declined for all transaction types in the first half of 2023, LP-led transaction dollar volumes were only down by 7% compared to H2 2022 on an absolute basis.
Over the same period, GP-leds were down by 36% — this reflects a broad market trend of discerning buyers prioritizing LP portfolios over GP-leds, although in recent months we are seeing signs of recovery in demand for GP-leds.
Meanwhile preferred equity transactions saw dollar volumes drop by 50% as increasing interest rates pushed the cost of these solutions higher making an outright sale option more attractive for most LPs.

Secondary transaction volumes in the first half of the year fell over 24% YoY to $40 billion. This mirrored the slowdown in global private equity investing, fundraising, and exits brought on by tighter credit conditions and macro uncertainty.
While dollar volumes declined for all transaction types in the first half of 2023, LP-led transaction dollar volumes were only down by 7% compared to H2 2022 on an absolute basis.
Over the same period, GP-leds were down by 36% — this reflects a broad market trend of discerning buyers prioritizing LP portfolios over GP-leds, although in recent months we are seeing signs of recovery in demand for GP-leds.
Meanwhile preferred equity transactions saw dollar volumes drop by 50% as increasing interest rates pushed the cost of these solutions higher making an outright sale option more attractive for most LPs.

Please contact us should you have any queries or wish to find out more about Campbell Lutyens’ secondary advisory practice