The value of private equity funds being raised in the secondaries market – where investments in private equity are bought and sold as liquid assets – has doubled since last year, driven by a sharp increase in deal opportunities as banks hurt by the credit crunch seek to sell down their private equity exposure.

Secondaries investors, which typically buy up legacy investments in private equity funds, as well as tail-end portfolios of unsold assets, raised funds totalling $14bn (€9bn) in 2007, according to research boutique Preqin, which tracks fundraising in the private equity industry.