Why LPs are getting the seven-year itch

There’s an interesting dynamic playing out in the secondaries market that suggests LPs’ thinking about how to manage their portfolios is evolving.

By Adam Le

According to new data from Jefferies , the average age of fund interests sold during the first half of this year was seven years. Not only is this a drop from 8.4 years during the same period last year and down from the high of 11.3 years in 2020, it’s also the youngest average fund age for secondaries trades in more than a decade.

In other words, sellers so far this year have been more willing to part with funds they have more recently committed to than at any other point over the last 11 years.

So, was 2016 simply a dud vintage and one that LPs around the globe just happened to be keen to exit in the first half of the year? Or are there other dynamics at play?

Read the rest of the article on Secondaries Investor.