The average price of LP interests in 40 alternative investment funds was 100% of net asset value in the six months ended Sept. 30, according to the latest secondary market pricing survey from online marketplace Palico.
Thomas H. Lee Equity Fund VII, a 2015 vintage fund, had the highest price in the six-month period at 120% of net asset value, followed by Blackstone Capital Partners VII, also a 2015 vintage fund, at 115% of NAV.
Vista Foundation Fund II, a 2013 vintage fund, had the next highest price at 111% of NAV.
Rounding out the top five at 109% of NAV each were Hellman & Friedman Capital Partners VIII, a 2015 vintage fund, and Kelso Investment Associates IX, a 2016 vintage fund.
The average discount for funds selling below 100% of NAV was 91% for the six months ended Sept. 30, down from 92% for the six months ended June 30 and 93% for the six months ended Dec. 31, 2018.
The gap between in-demand funds and their peers seems to be widening as financial markets become more volatile, according to Palico's report of survey results.
About 50% overall of funds in the secondary market sold at 100% or better during the six months ended Sept. 30 compared to 64% for the six months ended June 30.
Also over the six months ended Sept. 30, the number of tail-end funds — those that are at least 10 years old — has dropped to 24% of the secondary market from 33% for the six months ended June 30.