Report: Secondaries Market Heats Up

The secondaries market is heating up, with price increases causing some to consider strategic sales and others to buy, according to Pension & Investments.

Prices have been rising for the last 9 to 12 months to about 90% of face value and prices are now expected to level off, the story said. Among those looking to sell some of their PE holdings include the Illinois Teachers’ Retirement System and the Public Sector Pension Investment Board of Montreal.

Buyers want to maximize the returns of their private equity portfolios and are looking to buy portfolios in the market. Potential acquirers include the Illinois Teachers system and the $332 billion China Investment Corp. of Beijing.