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The Evolving Nature of Direct Secondaries Valuations

Direct secondaries are emerging as a leading exit strategy for private‑equity portfolios, prompting a reassessment of how these assets are valued. Subu Parmeswaran of Valuation Research Corporation highlights that traditional static models no longer capture the nuanced risk‑adjusted returns of these transactions. The market now demands dynamic cash‑flow projections, market‑based comparables, and greater transparency. As secondary activity accelerates, both general partners and limited partners must adapt to more sophisticated valuation frameworks.