New Probitas Vehicle Aims to Bridge Secondary Pricing Gap
Secondary intermediary Probitas Partners confirmed it is in discussions to create a liquidity vehicle that pairs sovereign wealth fund money with cash-strapped LPs. The vehicle, called Prospective, aims to bridge the pricing disparity between sellers and buyers of secondary limited partnership stakes by splitting the commitment. Prospective will separate LP stakes into funded and unfunded portions. The buyer—a SWF, potentially—agrees to fund future capital calls, and the seller—the current LP stakeholder—can still participate in the upside of its invested capital without taking a loss on the deeply discounted secondary market.
19 March 2009•2 mins read
