Voth Nixon Group has announced today the release of its bi-annual secondary market pricing analysis for the first two quarters of 2015.
The inquiry revealed once again a solid six-month term of trading activity with an estimated $11 billion in trading volume. Following a record setting trading volume of $14 billion in 2014 the secondary market has remained stable, which is impressive due to the fact that from a historical standpoint volumes have been weighted towards the last two quarters of the year. Last year during the same period the trading volume was approximately $5 billion.
Between a period of relative volatility and heavy variations within the international energy and currency markets the value of the secondary market has kept its vigor. As an average the high bid relating to all available strategies came in at 89% of net asset value during the first six months of this year which is similar to the pricing levels of 2014 and the highest since the beginning of the recession. With an average pricing of 92% of net asset value, buyout funds topped the ranks while still representing the market’s deepest segment.
Even though extensive secondary market statistics continue to be robust the study also reveals that not all funds are designed or valued at equal levels. A significant pricing dispersal could be observed amid funds which are still in their investment or just entering the yield period and ones that are more than 10 years old. As a matter of fact during the first half of 2015 approximately 35% of the funds that were transacted by Voth Nixon Group were over 10 years old while only about a third of the funds were sold at 89% of the net asset value or better.
“Even though on average the price of assets has been increasing we have noticed a clear split amid both high and low quality fund” said Alexander Wong Voth, Chief Financial Officer of Voth Nixon Group “Due to very little upside potential, tail-end funds have been valued at considerable discounts in most cases”.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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