Alternative investments
Alternative investments
Podcast
18.2.2025
In times of slow exit markets and increasing liquidity requirements, private equity secondary funds in particular are moving into the spotlight. They enable a flexible investment in private equity without having to accept the long capital commitment periods of traditional private equity funds. FINVIA PE Perpetual focuses precisely on this strategy - and with success.
The market for secondary transactions reached a new high in 2024 with a record volume of USD 171 billion - an increase of 54 % compared to the previous year. This momentum is no coincidence. Three key factors make secondary funds particularly attractive this year:
Liquidity pressure on fund managers and investors: Many private equity fund managers - the so-called general partners (GPs) - are therefore under pressure to return capital to their investors. At the same time, limited partners (LPs), i.e. institutional and private investors, are increasingly using the sale of fund investments to create liquidity and actively manage their portfolios.
Attractive buying opportunities: The high supply of secondary transactions provides attractive entry opportunities. In 2024, the average purchase price was 83% of the net asset value (NAV), with particularly high-quality buyout funds trading at only minimal discounts. Investors therefore have the opportunity to acquire established private equity investments with a lower valuation risk.
Stable demand and high capital reserves: experts expect another record year in 2025 with a transaction volume of over USD 190 billion. At the same time, investors have USD 269 billion in "dry powder" (uninvested capital) at their disposal - capital that will flow into the market in the coming months and continue to drive momentum. (Source: Mizuho Greenhill Global Secondary Market Review FY 2024)
As a semi-liquid fund of funds, FINVIA PE Perpetual is geared precisely to these market conditions. Since its initial closing in April 2024, the fund has performed very positively:
Five of the renowned managers in the portfolio are Great Hill Equity Partners, Paddington Partners, The Jordan Company, KPS Partners and American Securities Partners (as of February 2025).
Would you like to subscribe to the PE Perpetual digitally?
On the FINVIA Investment Platform you will find further information on PE Perpetual and our entire range of funds. You will find detailed presentations, all relevant contractual documents and interesting video material from our investment experts. You also have the option of making subscriptions digitally and flexibly at any time.
Alternative investments
18.2.2025
Jan Hoffmann
In addition to promising market developments for private equity secondary funds, we take a look at the performance of FINVIA PE Perpetual and show how it is holding its own in a dynamic market environment.
In times of slow exit markets and increasing liquidity requirements, private equity secondary funds in particular are moving into the spotlight. They enable a flexible investment in private equity without having to accept the long capital commitment periods of traditional private equity funds. FINVIA PE Perpetual focuses precisely on this strategy - and with success.
The market for secondary transactions reached a new high in 2024 with a record volume of USD 171 billion - an increase of 54 % compared to the previous year. This momentum is no coincidence. Three key factors make secondary funds particularly attractive this year:
Liquidity pressure on fund managers and investors: Many private equity fund managers - the so-called general partners (GPs) - are therefore under pressure to return capital to their investors. At the same time, limited partners (LPs), i.e. institutional and private investors, are increasingly using the sale of fund investments to create liquidity and actively manage their portfolios.
Attractive buying opportunities: The high supply of secondary transactions provides attractive entry opportunities. In 2024, the average purchase price was 83% of the net asset value (NAV), with particularly high-quality buyout funds trading at only minimal discounts. Investors therefore have the opportunity to acquire established private equity investments with a lower valuation risk.
Stable demand and high capital reserves: experts expect another record year in 2025 with a transaction volume of over USD 190 billion. At the same time, investors have USD 269 billion in "dry powder" (uninvested capital) at their disposal - capital that will flow into the market in the coming months and continue to drive momentum. (Source: Mizuho Greenhill Global Secondary Market Review FY 2024)
As a semi-liquid fund of funds, FINVIA PE Perpetual is geared precisely to these market conditions. Since its initial closing in April 2024, the fund has performed very positively:
Five of the renowned managers in the portfolio are Great Hill Equity Partners, Paddington Partners, The Jordan Company, KPS Partners and American Securities Partners (as of February 2025).
Would you like to subscribe to the PE Perpetual digitally?
On the FINVIA Investment Platform you will find further information on PE Perpetual and our entire range of funds. You will find detailed presentations, all relevant contractual documents and interesting video material from our investment experts. You also have the option of making subscriptions digitally and flexibly at any time.
About the author
Jan Hoffmann
As Head of Alternative Investments, Jan Hoffmann is responsible for portfolio construction and manager selection in the Alternatives segment and is Managing Director of FINVIA Alternative Investments GmbH and FINVIA Alternative Management Sàrl in Luxembourg.
His work focuses on advising private and institutional clients on the development of private equity, private debt and infrastructure portfolios. Previously, he worked for nine years at HQ Trust GmbH - the family office of the Harald Quandt family - as Head of Private Equity and Private Debt. His other positions include UBS Sauerborn, where Mr. Hoffmann was an Associate Director in the Private Equity division. Jan Hoffmann holds a degree in economics (Ruprecht-Karls-University in Heidelberg) and completed a compact study program in private equity at the EBS University of Business and Law (Private Equity Advisor EBS/BAI).
