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Bachelor Thesis from the year 2008 in the subject Business economics - Investment and Finance, grade: 1,0, University of Frankfurt (Main), language: English, abstract: Private equity is an asset class with one notorious problem: illiquidity. First,investments are made without an exit option prior the determined maturity and second it is nearly impossible to purchase an interest of an existing private equityfund. For the last few years these issues have been changing due to the development and the emergence of a secondary market in the field of private equity (PE) which opens new investment…mehr

Produktbeschreibung
Bachelor Thesis from the year 2008 in the subject Business economics - Investment and Finance, grade: 1,0, University of Frankfurt (Main), language: English, abstract: Private equity is an asset class with one notorious problem: illiquidity. First,investments are made without an exit option prior the determined maturity and second it is nearly impossible to purchase an interest of an existing private equityfund.
For the last few years these issues have been changing due to the development and the emergence of a secondary market in the field of private equity (PE) which opens new investment opportunities and provides investors with liquidity in an extremely illiquid asset class. The main market indicators are growth and maturity. Especially in the financial sector of secondary markets the development of these indicators should be named. The PE secondary market is in a very early state and far from institutionalized markets like stock exchanges.
Heavy market imperfections area problematic characteristic in this context. Buyers and sellers have to meet privately and negotiate an agreement. Holding an asset for such a long period like in PE can be very unnatural and difficult in a fast moving world in which the need for liquidity and changing regulations, economic situations or other issues emerge very quickly. In consequence, an efficient secondary market seems to be important and necessary to face these problems and give investors the ability to participate and unload assets when circumstances force them to do so.
The PE secondary market is a relatively new phenomenon and is characterized by steady movement, change and development. Experts from market leading secondary funds and advisory services attest the PE secondary market an essential progress. The PE secondary market transforms from a market for unloading poor performing assets, to an instrument for providing chances in the way of an active portfolio management tool. This Bachelor Thesis, titled Secondary Markets of Private Equity Investments An Analysis has the main target to give a prevailing and critical overview of this subject.
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