Amy Carroll

Who sets the pricing in a continuation fund?

An auction process is the most common means of price setting, but there are exceptions.

Are there any potential conflicts of interest in a GP-led secondaries process?

Transparency is key to managing conflicts and enabling alignment of interest.

Will LPs always have a status quo option in a GP-led secondaries process?

Processes that don’t offer a status quo option have begun to crop up more frequently in the GP-led market.

Do GPs need to hire a third party to obtain a valuation and fairness opinion in a GP-led?

Proposed reforms in the US aim to make an independent fairness opinion a requirement in GP-led deals.

Do LPs need to conduct due diligence if they are rolling over exposure to a continuation fund?

Decision-making can be a resource-intensive process, although it is one that LPs are becoming more familiar with.

How much does it cost to run a GP-led process and who pays?

The parties that bear the costs can vary according to the structure of the deal.

How long does it take to complete a GP-led secondaries process?

There are various stages involved in getting these deals over the line, though greater levels of complexity can stretch timelines.

What implications do the SEC private fund reforms have for GP-led secondaries?

The regulator turned its attention to secondaries processes last year as part of a wider set of proposals designed to enhance disclosures in private markets.

Why might a sponsor want to pursue a GP-led transaction?

Continuation funds have become a more common exit route, enabling sponsors to hold onto their star assets for longer.

Co-investors under pressure from regulators

Co-investment brings benefits to both GPs and LPs, but unless tensions are resolved, there is a real risk it could be regulated out of the market