Private Equity Fire Sales Aren’t Here Yet. But They’re Probably Coming.

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Investors in private equity are gearing up to liquidate alternative assets in preparation for the coronavirus-triggered market rout continuing. 

Limited partners are eyeing liquidation for a few reasons: portfolio liquidity, allocation rebalancing, and investment strategy shifts, according to Claire Commons, head of strategy at Palico, an online marketplace where investors can buy stakes in private equity fund secondhand.

“We’re seeing that LPs are not panicked, but they are concerned,” Commons said by phone Wednesday. “They really want to be prepared.” 

Some are considering listing assets on the secondary market. 

 

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