SecondMarket today began trading in limited partnership interests in private equity funds, venture capital funds, hedge funds and funds of funds, said CEO Barry Silbert. SecondMarket is the first organized market to do so.
Weve already received buying interest from over 150 institutional investors since indicating on our website a month ago that we intended to create a market for LP interests, Mr. Silbert said in an interview, adding that $500 million worth of such investments are already listed for trading on SecondMarket, a broker specializing in trading illiquid securities.
SecondMarket added limited partnerships to its listings after being approached by investors wanting to cash out their stake in hedge funds with no formal redemption program or restricted redemptions, he said. Limited partners in private equity and venture capital funds also want to transfer their commitments, including for portfolio rebalancing consideration.