Secondaries

The exceptional performance of private equity is pushing many LPs to offload portfolios on the secondaries market, whether they planned to or not.

The biggest listed alternatives firms have more than $550bn in unspent capital, fuelling fiercer competition and higher entry prices.

The private equity industry is evolving – let us know which firms have stood out in the past year and been at the forefront of leadership and innovation.

Traditional LP portfolios have come back to market in the second half of the year and are expected to help drive overall secondaries volume to record levels.

The financial services holding company, which has $1.5trn in AUM, is paying $1.75bn for one of the largest remaining independent secondaries firms.

Single-asset secondaries have become a material part of the market, helping drive GP-led secondaries to represent the largest slice of overall transaction volume.

Japan’s regional banks have been expected to be a key source of secondaries dealflow after piling into alternatives over the past decade.

The lower mid-market has not traditionally generated much GP-led secondaries activity, but the market has expanded as new firms raise funds and GPs seek to find ways to generate liquidity on older assets.

Several firms have added secondaries capabilities, either by building in-house groups or acquiring outside firms like Ares Management, which bought Landmark Partners earlier this year.

The secondary is the first for Inovia, and represents a rare instance of not only a large continuation fund process in Canada, but one that involves VC assets as well.