Investors wanting to sell out of an illiquid unlisted hedge fund will have to do so at a discount, according to a secondary market maker in the industry, in a further sign of how demand for the asset class is being outstripped by a desire to exist such investments.

Insufficient demand for units in unlisted hedge funds has meant no share in any fund has changed hands at a premium to its net asset value this year, and 70% trade at a discount to their NAV, according to Hedgebay Trading Corporation.