Eaton Secondary Advisory Group: Selling Private Equity Beta by Disposing Mature Funds

Our Secondary Advisory Group discusses the merits of selling mature, non-core LP interests today — to de-risk PE portfolios and lock-in IRR gains – in a market that appears fully priced, in the attached White Paper.

The research suggests there has been less than a 1.6% cumulative change in IRR after year five in a typical buyout fund’s 10-yr life. We are seeing, proactive LPs utilize the secondary market to accelerate realizations and sell private equity beta in their mature funds. By capitalizing on secondary pricing today, near all-time highs, LPs are redeploying capital into better risk-adjusted opportunities to generate alpha.

White Paper: Selling Private Equity Beta

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