03 │ Transaction pricing analysis: LP-led transactions

Strong LP-led transaction momentum leading into the second half of the year.

LP-led pricing in H1 2024

  • LP-led transactions benefited in H1 2024 from the combination of improving economic conditions and buyers seeking to deploy the record funds they raised in 2023. 
  • While average pricing was in the high eighties, newer vintage, blue-chip buyout funds saw pricing well into the nineties.
  • Appetite for Venture / Growth increased, supported by strong momentum behind technology in the first half and a desire to backfill gaps in exposure. This led to a shift in pricing for Venture / Growth funds which increased by 17 points compared to H1 2023. 
  • Secondary pricing for performing private credit portfolios remains within a 10% discount. Growing dedicated capital pools for credit secondary transactions are contributing to a tightening of the bid-ask spread, particularly on the lower end of the risk return spectrum.

Average transaction pricing reported by respondents¹

Year-over-year change in average pricing by fund type¹

  1. Weighted by transaction value (purchase price plus unfunded) per respondent
  2. Average pricing based on survey responses and CL market knowledge

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