Secondaries

In a maturing market featuring multiple new entrants seeking to deploy greater amounts of capital, specialist expertise is key to delivering consistent outperformance, says Hollyport managing partner John Carter.

As GP-led processes continue gathering momentum and LP portfolio deals are likely to surge on pent up demand, Proskauer partners Mike Suppappola and Chris Robinson highlight key focus areas for buyers.

Annual deal volume was the third-highest ever last year as the market endured the pandemic. Here are five things to know going into H2 2021.

From non-accredited investors to trading platforms, wider access to private market investments will transform how the industry operates, writes Jay Cipriano, senior vice-president at SEI Investment Manager Services

Research has found that secondaries may not be the J-curve mitigator it’s often touted to be. Does it matter?

Appetite for exposure to assets via co-investments and single-asset secondaries defied the pandemic last year.

The skill set needed for GP-led deals is a hybrid of a direct investor and an LP – and right now the market doesn't have enough bodies, or capital, to keep up with deal flow, say Nigel Dawn and Andrew Hawkins.

LPs, who may already be committed to an older fund that is subject to a secondaries process, can also choose to directly invest through a passive co-investment in assets moving out of the fund.

Such deals give the GP more flexibility not only to hold assets longer out of older funds, but also fresh capital to continue growing the business.

Staff said they are seeing more GP-led secondaries than they have in the past, and are expecting to see more in the future.