Are we in for a flood of private equity holdings via the secondary markets? The likes of Goldman Sachs and JPMorgan Chase apparently expect as much. The Financial Times reports that Goldman Sachs has closed on a $5.5 billion secondary fund, called Vintage V, that will invest in private equity stakes. The fund raising was strong, exceeding the target amount by half a billion. 

JPMorgan Chase is said to be raising a similar fund. Why now? Well, banks account for about a quarter of private equity investors, and they are facing some new pressures to raise cash. They may have no choice but to sell. Others investors have already sold some stakes, notably CalPERS and the Harvard endowment. Most think any sales will be at discounts.

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