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Corporate Finance/M&A

As a result of recent market turmoil, there are many indications that 2009 will be a boom year for secondary transactions in private equity fund interests. Fund investors increasingly view secondary funds as an alternative means to gain liquidity and rebalance their portfolios, and buyers are motivated by the opportunity to purchase fund interests at discounted prices.

The secondary market for private equity partnership interests has grown dramatically over the last decade. Unlike initial investors in a fund, secondary buyers are investing not just in the fund's management team and track record, but also in its existing portfolio companies. This provides the opportunity for careful due diligence and analysis of each of the fund's portfolio companies.