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Alternatives

NYPPEX: LP transactions on secondary market rise 31.8% in 2018

Alternative investment limited partnership interest transactions on the secondary market increased 31.8% to $54.6 billion in 2018, compared to 2017, according to soon-to-be released estimates by secondary market broker NYPPEX.

"In 2018, NYPPEX observed LPs seeking to both buy and sell certain private equity funds, typically to manage risk and optimize returns," said Laurence Allen, managing member of NYPPEX, in an email.

Some 32% or $17.4 billion of the total secondary market transactions in 2018 were general partnership-led deals.

"More GPs are utilizing the secondary market to generate exits, wind up older funds or restructure older funds to raise capital for new vehicles," Mr. Allen said.

At the same time, NYPPEX estimates the 2018 worldwide volume of secondary transactions involving private companies increased 23.1% to $29.3 billion in 2018.