Secondary market in Asia sees pickup in activity as players search for liquidity
No lack of choice deals for secondary funds as global demand outstrip supply
[SINGAPORE] The secondary market in Asia has been picking up as investors and fund managers seek liquidity.
Usually, the general partner (GP) – the fund manager – will have a close-ended fund with a typical 10-year tenure. Limited partners (LP) – investors – will have invested in this fund.
These funds usually have a fixed duration, after which the holdings have to be liquidated and the capital returned to the investors. As the markets have been weak, liquidation would result in the investors recognising a loss.
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