Why the secondaries surge?
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Secondaries fundraising continues apace, gathering another $26.3 billion through early Q4. That puts 2018 slightly behind last year’s record, but this year will still mark a third consecutive year with strong numbers. As a strategy, secondaries have garnered attention recently—buy-side LPs are pushing for PE exposure at the right price, as secondaries offer discounts that could produce sizable profits down the road. In aggregate, secondaries funds have consistently produced positive net cashflows over the years, help mitigate the oft-cited J-curve, and provide a valuable tool for LPs looking to keep their allocations intact. On the other hand,