Secondary Market for Private Equity

Posted on January 30, 2009


Interesting post from Joanna Glanser at PEHUB about the number of private equity partnership shares trading hands. From the brief article:

The forecast released this week by secondary market maker NYPPEX predicts that sales of limited partner stakes in private equity partnerships will soar by 68% to $27 billion in 2009.

This highlights the stratosphere of markets that can and should exist to enhance market efficiency – allows one owner take possession of an asset that another is no longer willing or able to hold. Fred Wilson touched on that during his panel discussion at a recent conference. Marketplaces such as SecondMarket should exist to provide an exchange mechanism.