04
Transaction pricing analysis
Average transaction pricing reported by respondents, broken down by transaction type¹
- Weighted by transaction value (purchase price plus unfunded) per respondent
- More than 60% of the LP-led transactions priced at a discount exceeding 10% of NAV, nearly three times the proportion of the total in 2021. Secondary buyers priced LP fund interests conservatively, anticipating a write down in private marks that has yet to transpire despite lower valuations for public companies.
- Consistent with prior years, pricing for GP-led secondary transactions was stronger than LP-leds with nearly 80% of the transactions reporting a discount to NAV of 10% or less (versus 93% in 2021). The stronger GP-led pricing is a function of more customized portfolios or high-quality trophy assets trading hands where greater conviction can be established in the underlying assets.
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