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PE firms push for secondary market deals as valuations dip

As declining portfolio value clips the market valuations of many firms, the secondary private equity market has swung into action. Exit options such as initial public offering (IPO) have dried up in the last three months, leading to secondary market sales emerging as a viable option for private equity players, feel market analysts. Secondary deals in the private equity (PE) parlance refer to instances where a PE or LP (limited partnership) firm buys out the stake of other PE/LP firms. According to Rupali Vasudev of market research firm Evalueserve, “Although the secondary market has been present in the PE/LP and venture capital space, it is only recently that a lot of attention is being focused on it. There is a paucity of exit avenues and, hence, many firms are looking to liquidate their investments through secondary sales.” […]

Private equity firms tap exit opportunities

Private equity players known for their investment acumen have been selling in the current rally. Ever since the equities’ rally gathered momentum, there has been a spate of exits by private equity firms and venture capital companies through open market transactions. Companies such as Techno Electric, Mundra Port and SEZ, Shriram Transport Finance, Lupin and Titagarh Wagons have reported selling by PE firms. Put together, PE players have sold over Rs 758-crore worth of equities since March this year. […]