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Secondary Deals Market Set to Pick Up in H2 2023, According to Jefferies

A new report from Jefferies suggests that the secondary deals market is set to pick up in the second half of 2023.

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The report, which was published on July 25, 2023, found that there is a growing pool of dry powder available for secondary deals, and that there is a strong demand for secondary assets from both strategic and financial buyers.

The report found that the secondary market for private equity has been relatively quiet in recent months, as investors have been focused on the primary market.

However, Jefferies believes that the secondary market is poised for a rebound in the second half of 2023, as investors begin to look for opportunities to deploy their capital.

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The report cited a number of factors that are likely to drive the secondary market in the second half of 2023. These factors include:

  • The increasing availability of dry powder: There is a growing pool of dry powder available for secondary deals, as investors have raised significant amounts of capital in recent years.
  • The strong demand for secondary assets: There is a strong demand for secondary assets from both strategic and financial buyers. Strategic buyers are looking to acquire secondary assets in order to expand their businesses, while financial buyers are looking to acquire secondary assets in order to generate income.
  • The attractive valuations of secondary assets: The valuations of secondary assets are attractive, as they are typically trading at a discount to the underlying assets.

Jefferies believes that the secondary market is likely to see a significant increase in activity in the second half of 2023. The report forecast that the total value of secondary deals could reach $100 billion in 2023, up from $75 billion in 2022.

“We believe that the secondary market is poised for a rebound in the second half of 2023,” said Michael Barr, a managing director at Jefferies. “There is a growing pool of dry powder available, and there is a strong demand for secondary assets from both strategic and financial buyers.”

The report from Jefferies is a positive sign for the secondary deals market. The report suggests that the market is set to rebound in the second half of 2023, as investors begin to look for opportunities to deploy their capital. This is good news for both strategic and financial buyers, who are looking to acquire secondary assets.

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