Growth of the Secondary Market
The growth and maturity of the private equity market has generated significant secondary market opportunities. The Principals believe between 2% and 5% of all primary commitments will eventually be available on the secondary market.

The market for sales of existing limited partnership interests has grown significantly since the late 1990s, both in terms of transaction volume and aggregate dollars raised to invest in secondary transactions.

The Principals expect continued growth in secondaries to be driven by five key factors: (1) high levels of primary commitments; (2) a refocus on core operations by corporate investors; (3) the trend toward more active portfolio management by private equity investors; (4) the need for liquidity by certain types of investors; and (5) changes in regulation and taxation.

Commitment Growth.

Refocus on Core Operations.

Active Porfolio Management.

Liquidity.

Regulatory Change.