Once a niche market, secondary private equity has become a more mature asset class and an important source of liquidity for private equity funds.
In 2000, secondary deals executed globally totaled $2.8 billion. In 2020, the market totaled $60 billion, a twenty-fold increase. As primary commitments rise, there could be room for even more growth within the secondaries market.
Source: Greenhill Cognet. As of 12/31/2020
Earlier Returns of Capital
Unlike primary funds, secondary funds buy interests in funds that have mostly completed their investment periods, containing portfolio companies that are already generating cash flow. As a result, secondary funds typically return investor capital sooner because they purchase stakes at later stages in the private equity lifecycle.
For informational purposes only. The above is not meant to be predictive of the performance of any particular fund.
Why Secondaries with Blackstone
We are a leading global investor in the alternative asset secondary market. We acquire interests in funds across asset classes, offering liquidity to investors, and co-invest alongside managers globally.
Driving fundamental improvements in businesses over the long term
Real estate has historically offered current income to investors and may appreciate in value over time
Hedge funds can be an effective diversfication tool for investors.
An attractive alternative investment for investors looking for yield