Taking advantage of the secondaries market

After the Global Financial Crisis (GFC) of a decade ago, there was a wave of investors in private funds selling down their positions in portfolio secondary sales. There were various drivers for this phenomenon. For financial institutions, it was driven in part by regulatory pressures. For other investors, it was a combination of the denominator effect (the ratio of allocation between investments in publicly traded securities and alternative (private) investments) and the adverse consequences of an over-commitment strategy that left investors unable to satisfy capital calls when regular distributions were unreliable.

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