The Church of England’s prolonged struggle to sell its stake in Wonga, the payday lender, illustrates the problems that investors can encounter when they lock up their capital in illiquid private vehicles instead of buying publicly traded securities that offer a straightforward exit.
However, buying and selling positions in existing private equity funds in the secondary market is becoming increasingly popular, attracting growing interest from institutional investors.
Ardian, a Paris-based manager, raised $9bn earlier this year to create the largest private equity secondary market fund to date while Lexington Capital Partners is looking to raise $8bn to $10bn for its latest secondary vehicle.
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(FT) C of E's struggle to sell its Wonda Stake Illustrates 2ndary Market drawbacks
The Church of England’s prolonged struggle to sell its stake in Wonga, the payday lender, illustrates the problems that investors can encounter when they lock up their capital in illiquid private vehicles instead of buying publicly traded securities that offer a straightforward exit.
However, buying and selling positions in existing private equity funds in the secondary market is becoming increasingly popular, attracting growing interest from institutional investors.
Ardian, a Paris-based manager, raised $9bn earlier this year to create the largest private equity secondary market fund to date while Lexington Capital Partners is looking to raise $8bn to $10bn for its latest secondary vehicle.
Read it all.