Secondaries

The deal is an example of the kind of complex transactions LPs can use to capture liquidity from their private equity programs at a time of slow exit activity.

The two firms have registered fund management businesses with the Asset Management Association of China – a legal requirement for raising capital or investing onshore.

LP sales continue to drive secondaries activity as limited partners look for ways to capture liquidity from their illiquid PE portfolios amid a slowdown in distributions.

The firm has appointed Michael Hu, a former managing director at Ardian, to lead its regional investment and business development activities from its new office in Singapore.

A panel of LPs discuss trends and themes in private equity, including the use of secondaries to rebalance portfolios.

Continuation vehicles across different geography, size and industry of underlying assets have generated similar return multiples.

Impact investor Summa Equity closed Summa Circular, believed to be the first Article 9 continuation fund, in December, breaking new ground for the secondaries market.

Early engagement and regular communication with LPs are vital to avoiding roadblocks in the GP-led secondaries process.

Muted M&A activity and liquidity demands are prompting more sponsors to consider moving assets into continuation funds, but successfully completing a GP-led deal is more easily said than done.

As supply continues to outstrip demand, it is ever more important to clearly demonstrate why particular assets are well suited to a continuation fund process.