Secondary Prices Drop

Cogent Partners has released a new study of the secondary private equity market, and finds that secondary prices for LP interests have dropped in the first half of 2008. That might seem like common sense, but comes after those same prices somehow held near-steady during the second half of 2007.

In general, the average bid for all secondaries (as a percentage of NAV) was at 84.7% for the first half of 2008. This mostly mirrors public equity value declines, once leverage is accounted for. You can read the full study here: cogent-partners-pricing-paper-2008.