US-based SecondMarket, the largest global secondary market for illiquid assets, is mapping out its entry into Asia, where it is sourcing buyers and sellers. Its foray coincides with the resurgence of hedge funds, which account for half of its buyers and sellers, according to
SecondMarket chief strategy officer Jeremy Smith.

The firm has a business development team in Hong Kong, where it may set up regional headquarters later this year, although Singapore is also being considered, said Smith. He added that interest in SecondMarket by Asian hedge funds has increased significantly since February, when the Li Ka Shing Foundation, a charitable organisation founded by Hong Kong billionaire Li Ka-shing, and Singapore state investment firm Temasek invested a total of $15 million in venture capital financing.

SecondMarket plans to have about 12 Asia-based staff by next year, with plans to eventually have a regional operation equal in size to its US business, which employs about 150.
Founded in 2004, the firm has more than 10,000 market participants, including hedge funds, pensions, family funds and banks. It has more than $25 billion in illiquid assets for sale, including private company stock, limited partnership interests, auction-rate securities, bankruptcy claims, residential and commercial mortgage-backed securities, collateralised debt obligations, whole loans, and warrants and restricted stock in listed companies.