Transaction pricing analysis – LP-led

Weighted by transaction value (purchase price plus unfunded) per respondent
Weighted average pricing by transaction volume based on buyer survey responses for each investment strategy

The average pricing on LP-led portfolios in H1 2023 was slightly weaker compared to FY 2022 with noticeably more respondents indicating higher discounts than in the prior year.
Pricing for LP-interests was widely dispersed in H1 2023, with less volatile asset classes such as private credit, infrastructure, and mega buyout generally attracting mid-teens or better discounts to NAV. On the other end of the spectrum, venture, growth, and real estate experienced fairly wide discounts to NAV due to greater uncertainty in underlying valuations and future returns.
Pricing for well-known buyout GPs and funds with strong assets have improved notably in recent months with a greater cross section of more recent vintages now attracting pricing in the single digit discounts. We expect this trend to continue as fears of a valuation reset for buyout assets have dissipated and increasing dry powder will encourage buyers to narrow bid/ask spreads to draw out sellers.

Weighted average pricing by transaction volume based on buyer survey responses for each investment strategy

The average pricing on LP-led portfolios in H1 2023 was slightly weaker compared to FY 2022 with noticeably more respondents indicating higher discounts than in the prior year.
Pricing for LP-interests was widely dispersed in H1 2023, with less volatile asset classes such as private credit, infrastructure, and mega buyout generally attracting mid-teens or better discounts to NAV. On the other end of the spectrum, venture, growth, and real estate experienced fairly wide discounts to NAV due to greater uncertainty in underlying valuations and future returns.
Pricing for well-known buyout GPs and funds with strong assets have improved notably in recent months with a greater cross section of more recent vintages now attracting pricing in the single digit discounts. We expect this trend to continue as fears of a valuation reset for buyout assets have dissipated and increasing dry powder will encourage buyers to narrow bid/ask spreads to draw out sellers.

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