Big discounts for private equity stakes

The private equity fund secondary market has been active as of late. Unfortunately, a bear market has set in for stakes in many funds. In some cases, stakes have traded for as little as 30 cents on the dollar. The Financial Times reports that Cerberus fund holders were likely to have sold at the sharpest discounts, reflecting its GM stake. TPG fund holders have also been taking big discounts. One investor told the FT he had bought into a TPG fund in the secondary market for 45 cents on the dollar. While most private equity funds are being hit by the woeful deal environment, not all are taking huge haircuts in the secondary markets. But most think there's more pain to come as more portfolio companies continue to struggle.

For more:
- here's the FT article

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