Buyers in alternative investment secondary markets expect to decrease purchases by an average 29.7% in the next two months, according to a survey conducted by secondary market broker Setter Capital.
Some 39 active and regular buyers in the secondary market responded to the survey in mid-March, said Cecilia Banares, Setter administrative director, in an email.
Survey respondents estimated that it will take about 9.4 months for the alternative investment secondary markets to return to normal levels of buying and selling.
Buyers expect 2020 volume to decrease by 28.5% from the record volume of $84.4 billion in 2019.
Buyers estimated that 67.7% of their purchases would be of funds, with the rest in direct secondaries, including recapitalizations and restructurings of funds, fund liquidations and co-investments.
What's more, buyers expect prices to decrease, with the biggest declines in clean technology, which seeks to reduce the use of natural resources — down by 39.2% from 74.6% of net asset values, followed by real estate funds, forecast to be down 35.1% from 87.3% of net asset value, based on Setter pricing data as of Dec. 31.
