What is a typical pricing trend for private equity secondary transactions?

In private equity secondary transactions, prices frequently average around 89% of net asset value (NAV), which reflects a common trend observed in the market. This percentage indicates that secondary buyers often purchase stakes in private equity funds at a discount to NAV due to various factors: potential illiquidity of assets, market conditions, or the need for sellers to liquidate their positions swiftly. An average price around 89% typically allows buyers to account for any inherent risk and to strategize for an expected return on investment.

Moreover, while prices may vary based on specific circumstances, averaging around 89% represents a balanced approach to reflecting the true market conditions for secondary transactions. This figure conveys that while some transactions may occur at higher or lower percentages depending on the specifics of the fund, 89% is a practical benchmark for most secondary deals.