mcp’s article “Active Portfolio Management through Private Equity Secondaries” published by Absolut|report
mcp is happy to announce our latest research publication that provides an overview over the most recent trends in the secondary market and analyzes its risk/return characteristics. The article with the title “Active Portfolio Management through Private Equity Secondaries” was published in the October issue of the Absolut|report magazine. The article is available in German and English.
Dr. Christian Diller and Katja Baur analyze the risk/return profile of secondary funds: Historical net IRRs of secondary funds were on average superior to those of buyout funds. While in turn net TVPI multiples have been higher for buyout funds, the risk was substantially lower for secondary funds.
Secondary funds are not only seen as an integral part of a well-diversified private equity portfolio, but also as a highly suitable instrument for efficient portfolio management. The segmentation of the secondary market and its strong innovation led to a variety of attractive and customized solutions for sellers and investors.