Secondary pricing flies high for infra funds; venture sees big jump

Denise Ko Genovese
18 February 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Infrastructure, growth funds and LBO funds all saw secondaries pricing remain above 90% of par in the 90 days to the end of December, according to research by Setter Capital.

According to Setter Capital's Q4 2020 secondaries pricing report, the three most expensive strategies in the 90 days to 31 December 2020 were infrastructure at 99.25% of par (an 8.42% increase from the same period 12 months prior); growth funds at 93.45% (a 3.15% increase), followed by LBO funds at 92.94% (a decrease of 0.23%).

Other fund stakes priced above 90% of par included mezzanine funds at 90.38% (down 5.17%) and special situations at 90.07% (down 5.84%).

Venture capital fund stakes traded at less hefty valuations, averaging 81.67% of par, but registered the starkest increase compared to the previous period in 2019 (+9.24%).

Meanwhile, private equity fund-of-funds stakes came in on average at 79.75% (down 2.66%), while secondary private equity funds came in at 80.20% (down 1.85%).

Across all fund types, the highest prices were paid for 2016-2018 vintages, while the lowest prices were paid for 2011 and older vintages.

These were average top prices in the 90 days prior to 31 December 2020 from actual bids and indications given by the 1,800-plus buyers covered by Setter.