Navigating Discounts and Quality in Private Markets

The chapter delves into understanding the rationale behind fund sellers accepting discounts in the market and the various factors influencing their decision-making process. It explores the impact of market rates, pricing fluctuations, and liquidity on transaction volumes. Additionally, it discusses strategies employed by secondary managers, emphasizing the importance of discernment in asset selection and the focus on acquiring high-quality assets at a discount for long-term value appreciation.