New article on valuation of secondaries in PEI book
With the increasing importance of private equity secondaries, which is reflected in record transaction volumes of more than $40 billion in both 2014 and 2015, the question of valuing secondary assets has become more important.
In this article, Christian Diller and Marco Wulff present an overview of the current status of valuing private equity fund interests, the underlying valuation methods and other relevant factors. Specifically, it examines and compares the valuation of large transactions and small transactions, the differences between top-down and bottom-up approaches, straight and more complex structured sales, and, finally, outlines commonalities, differences and challenges in valuing secondary transactions. The article also contains up-to-date empirical analyses of the cash flow behaviour of private equity funds and their valuations.
mcp is pleased to contribute to this book project with Private Equity International (PEI) and Greenhill Cogent who reached out to “market leading practitioners to benchmark best practices for new and established sector players of all types and sizes.”. For more information on the book “The Secondaries Market”, please follow this link: https://www.privateequityinternational.com/the-secondaries-market/