LPs can find the sweet spot for premium pricing on the secondary market in vehicles that began investing six years ago.
A survey by Palico which monitored LPs who have purchased funds on the secondary market over the last six months found that of 13 funds, the five 2011 vehicles were priced at par or better.
The average pricing of 25 transactions monitored during the period stood at 98 percent of the most recently reported net asset value. Funds sold at par or better were generating an average premium of 4.7 per cent, while those sold at less than par averaged 90.8 per cent of net asset value.
The average fund age of those secondary transactions tracked by Palico is 7.4 years.
The oldest funds were Oak Investment Partners XI and Technology Crossover Ventures V, both of which finished fundraising in 2004, while the newest was Lexington Capital Partners VIII which closed two years ago.