The secondary venture-capital market is showing signs of improvement, though prices and volume remain low.
Asset management partner Bryan Hunkele told The Wall Street Journal PE Pro that slower private-equity and venture distributions have prompted some limited partners to float sales of fund stakes to raise cash to re-up with new funds from existing firms, or for other needs in their organizations.
“In a normal market where funds are pumping out cash and LPs didn’t have this concern about liquidity, you could go to market with a portfolio of venture funds and you would get priced a lot closer to par. Now, because there are so many interest that are available in the secondary market, people are really drilling down into diligence. And also, it’s a race to the bottom in terms of pricing, if you really need to get cash flow,” Bryan said.
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