Hedge Funds

Survey: What do you think of the private placement secondary market?

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Hedge fund and private equity secondaries could exceed $100B in 2012, but some investors still only think of it as an emergency exit. What are your views?

PortfolioCentriX, a provider of software to institutional investors, is conducting a survey to determine investor and manager views of the private placement secondaries market, and of the many so-called “liquid alpha” replication strategies that are supposed to avoid the problem of alternatives illiquidity altogether by offering investors hedge fund-sized returns with public market liquidity.

In 2011, there were $75 billion of secondary transactions in private placements purchased with levered and unlevered investor capital, up from $46 billion in 2010, according to PortfolioCentriX. “Investors, who in the past would not sell at a discount, are now selling stakes at