Secondaries

Offering unique access to trophy assets, continuation vehicles could form a core part of any investor’s secondaries strategy, says Nick Lawler, head of secondaries at Churchill Asset Management.

Single-asset continuation vehicles have reached a tipping point as a widely used portfolio management tool for sponsors, argue Lexington Partners’ Christophe Browne and Jeffrey Bloom.

Secondaries have now matured into an established asset class, and GP-led transactions are leading the way in reshaping the market, says Stefano Manna, head of GP advisory at Investec.

New pricing patterns and rising competitiveness are helping to distinguish GP-leds from the LP-led side of the market, says Morgan Stanley Investment Management’s Nash Waterman.

Surging demand for GP-led secondaries is altering how investors analyse dealflow and accelerating buyer specialisation, according to Baird GP Solutions’ Jeremy Duksin, Alex Mejia and Chad Bounds.

Investors need to re-evaluate outdated allocation models in light of an explosion in GP-led secondaries deals, says New 2ND Capital founder Tjarko Hektor.

In the rapidly evolving GP-led market, new approaches to deal terms and structures are proving a hot topic, according to Akin partners Fadi Samman, Daniel Quinn and Simon Ellis.

The arrival of niche strategies in GP-led secondaries is helping to diversify the opportunity set like never before, according to AltamarCAM Partners’ Rocío Heres and Miguel Echenique.

Amid a slow M&A and IPO market, GP-led transaction volume grew by more than 50% last year. And according to PJT Partners’ Johanna Lottmann and Nicholas Lyons, that’s unlikely to change, even as traditional exits pick up.