Commitment Growth
The secondary market is highly correlated to both the amount of capital committed to private equity funds and the number of investors in the asset class. The amount of capital committed to domestic private equity since 1995 exceeds $1.5 trillion, as estimated by the General Partner. During this time, there was an increasing number of first-time private equity investors and many institutions increased their private equity allocations. Many of these investors have become overallocated to this asset class, have decided to divest non-core assets or are otherwise re-balancing their investment portfolios. As a result, they are turning to the secondary market to liquidate some or all of their holdings.