In the midst of the Covid-19 pandemic, the alternative investments secondary market – private equity, real estate, infrastructure, timber, hedge funds – hit a record USD143.4 billion in FY 2021, up markedly from the USD61.8 billion transacted in 2020.
In the midst of the Covid-19 pandemic, the alternative investments secondary market – private equity, real estate, infrastructure, timber, hedge funds – hit a record USD143.4 billion in FY 2021, up markedly from the USD61.8 billion transacted in 2020.
That’s according to Setter Capital’s Volume Report 2021, which reveals that not only was 2021’s total a 132.2 per cent increase over the previous year, but it was the first time the secondary market surpassed USD100 billion.
With one exception, volume was up significantly across all alternative investments in the secondary market. Private equity secondaries (funds and directs) increased 137.0 per cent year over year, to a total of USD133.22 billion. Private equity funds alone were up 164.6 per cent (USD65.75 billion in FY 2021 from USD24.85 billion in FY 2020). Salient increases were seen across LBO fund secondaries (up 158.3 per cent) , VC fund secondaries (up 154.0 per cent ), fund of fund secondaries (up 249.7 per cent) and most notably, debt fund secondaries (up 300.4 per cent ). Real estate secondaries (funds and directs) were up 66.7 per cent and infrastructure fund secondaries were up 139.2 per cent.
Looking forward, buyers expect FY 2022 volume to be USD149.28 billion, up 4.1 per cent from the USD143.41 billion transacted in FY 2021.
