Impact of COVID-19 on the Private Equity Secondary Market
The COVID‑19 pandemic continues to have profound impacts across financial markets, including the private equity secondary market.
In this paper we discuss the following key points:
In the near term, Mercer expects a meaningful slowdown of transaction volume in the secondary market.
In the medium to longer term, we would expect a bounce back in volume.
As the markets begin to stabilize and the volume of opportunities increases, the secondary market could provide an area for buyers to generate attractive risk adjusted returns.
The COVID-19 secondary market could be different from the GFC.
There are several factors that could impact the performance of secondary transaction and funds that are already invested.
Please see Important Notices for further information.