Private equity two market funds use the grace hour private equity second-market funds are the in the area of closed-end funds currently in vogue. Details can be found by clicking Viktor Mayer-Schönberger or emailing the administrator. Used are”private equity funds bought, called secondaries. Used investments are purchased with partially high tees on the original acquisition cost and the current favorable market level. Precisely, the financial crisis has ignited the boom in the secondary market. If you have read about Ken Cron already – you may have come to the same conclusion. High value losses of almost all asset classes rows resulted in liquidity shortages on the investor side, so that investments were pushed off-row after row. Also, exceeding targets required shifts, because the bear market on the stock markets in 2008 and early 2009 had led to an overweight in private equity fund in many portfolios (denominator effect”). Accordingly, the sellers market with increasing trade volume developed in the meantime to a buyer’s market. Currently, there is a high surplus of funds in the secondary market.
Many are the few buyers So the price for used Fund investments will be forfeited seller, rapidly. Recent studies of the consulting firm cogent partners according to the offers in 2009 partially below 40% of the net asset value of the respective funds were. Currently, you can buy shares in private equity fund therefore at very favourable conditions. The later returns could be correspondingly high. Further advantages: many of the holdings are already in an advanced stage and often have a higher level of maturity. It flows through dividends and sale proceeds use much earlier and capital employed is usually much shorter.
Also, the investment risk is reduced. Existing investments within the private equity fund portfolio can be better analyzed, because the blind-pool nature toward a new launch of the Fund is significantly restricted. It applies to the investor but, not to be missed the optimum time window for the entry in the private equity secondary market. Not only Warren Buffet knew that the best time to get started is the one, if hardly anyone for a plant is interested in. To identify but real bargain, a long-standing expertise and industry networking is required. Therefore access to the secondary market of closed-end funds, the private investor is advisable.