Private Equity

Preqin_Secondaries_Pricing_Analysis_Dec09-1Secondary market private equity transactions have not met expectations in 2009, according to Preqin with estimates of just $6 billion to November, compared with $20 billion in 2008. However estimates indicate pricing will improve in 2010 and as a result sellers should consider subdividing their portfolios and inviting a range of bids to take advantage of the selectivity which exists among secondary market buyers.

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altFor US private equity and venture capital managers, Q2 generated the best returns since the end of 2007, when listed markets began sliding, and for the first time since its introduction mark-to-market valuation methodology benefited managers, according to research from US Consultancy Cambridge Associates.

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As Harvard Management Company (HMC) begins shedding 25 per cent of its workforce after incurring a 22 per cent loss since the beginning of the financial year, its investment consult, US firm Cambridge Associates, says the ‘endowment model’ is not impaired.

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Only $38 billion was raised in private equity worldwide in the third quarter of 2009, the lowest level since the fourth quarter of 2003, with the number of fund raisings abandoned more than tripling in a year, according to Preqin.

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Bruno RaschleDeclining earnings multiples represent just the first wave in the new private equity cycle, according to Adveq Management AG, a big Swiss-based fund-of-funds manager.

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