A survey of LPs who have successfully purchased private equity fund stakes on the secondary market shows strong pricing for vehicles run by blue chip managers, including the likes of Clayton Dubilier & Rice, Waterland and CVC Capital Partners, among others.
The survey, conducted by online private equity marketplace Palico, covered secondary transactions involving 25 funds secured during the last six months.
The research shows that the typical secondary transaction is valued at 99.7 per cent of the most recently reported net asset value. For funds sold at par or less, the average transaction is valued at 93 per cent of NAV
Of the 25 funds for which Palico has winning bid data, 12 are valued at premiums to NAV.
The 12 funds that priced at a premium to NAV are:
Clayton Dubilier & Rice VIII: 115 per cent of NAV. 2009 vintage.
Waterland Private Equity Fund V: 113 per cent of NAV. 2011 vintage.
CVC Capital Partners V: 112 per cent of NAV. 2008 vintage.
Vista Equity Fund IV: 109 per cent of NAV. 2012 vintage.
Vitruvian Investment Partnership I: 108 per cent of NAV. 2008 vintage.
Advent International VI: 107 per cent. 2008 vintage.
CDH China Fund IV: 106 per cent of NAV. 2010 vintage.
TPG Partners VI: 103 per cent of NAV. 2008 vintage.
KKR 2006 Fund: 103 per cent of NAV. 2006 vintage.
Blackstone Capital Partners VI: 103 per cent of NAV. 2011 vintage.
Warburg Pincus Private Equity VIII: 102 per cent of NAV. 2001 vintage.
Permira Europe IV: 101 per cent of NAV. 2006 vintage.