The Wall Street JournalQuotes Investment Management Partner on the Supply of Secondary Stakes Arising from The Volcker Rule

The passage of the Volcker rule in 2010 provided a steady supply of secondary stakes, which private equity secondary firms feasted on, outlined an April 28 article from The Wall Street Journal. However, with the 2017 deadline to comply, secondary investors expect the supply to dwindle in 2016, with an uptick in 2017. The article notes a lack of clarity on how the Federal Reserve will treat extensions remains. Investment management partner Mark Nuccio states that the Volcker Rule creates an incentive for financial institutions holding illiquid assets to divest of them, clarifying that “The Fed can’t give any more blanket extensions.”