The value of private equity fund interests sold on the secondary market fell to an average high bid of 39.6% of net asset value in the first half of 2009, from 61% of NAV in the second half of 2008, according to Cogent Partners study showed.
The value of the average median and low bids also fell during the first half of this year, with an average median bid declining to 35.7% of NAV, from 55.2%, and an average low bid dropping to 31.6% of NAV, from 50.1%.
Pricing for secondary market private equity fund interests has been falling since the first half of 2007 when it was above NAV, according to Cogent, which advises institutional investors on secondary transactions.
So-called non-traditional buyers — including pension funds, foundations, endowments, general partners, insurance companies and family offices — were buyers in 43.1% of the transactions. Of the non-traditional group, pension funds accounted for the biggest percentage, with 36.8% of those buyers.
The study was drawn from more than 200 private equity partnership interests — comprising 61% buyout funds, 22% venture capital funds and 17% other funds — marketed between January and June representing about $2.5 billion in transactions.