Private equity funds have risen in value in recent years due to highs in the stock market and low interest rates, among other factors. Many investors have decided to cash out now rather than wait for the funds to mature fully. The majority of these decisions, according to Evercore, result from portfolio management rather than regulatory pressure or financial distress.
These sales also benefit buyers since investing in an existing private equity fund stake involves considerably less risk than other investments even if returns prove a bit limited. Most of the buyers last year were large investment vehicles, not individual investors.