Secondaries

Shifting pricing and macro dynamics, record secondaries fundraising, and positive performance indicators are setting the stage for a strong year for GP-leds, say Partners Group’s Martin Liew and Robin Shelley.

Amid today’s environment and ongoing growth in GP-led deals, rolling carry and putting additional capital at risk are no longer enough to guarantee alignment, says Morgan Stanley Investment Management’s Nash Waterman.

Single-asset transactions can work well in all weathers, particularly as the GP-led market becomes more institutionalised and standards continue to improve, say ICG Strategic Equity’s Rob Campbell and Andrea Serra.

As more deals come to market, secondaries investors must be focused and decisive when assessing opportunities, says Miguel Zurita, a managing partner at AltamarCAM Partners.

While demand among GPs for liquidity options to pay back LPs in older funds is strong, the limiting factor is the relatively small pool of capital available for such deals.

Besides private credit, LUCA 1.0 is also in talks to introduce private equity secondaries, fund of venture capital funds and a private markets sports fund, chief executive Keiko Sydenham tells PEI.

The European tech investor closed on €1.1bn for Verdane Edda III, which makes minority and majority investments in single companies.

Blackstone’s decision to fold its GP Stakes unit into Strategic Partners underscores the clear synergies between the two strategies – though a few questions remain.

While GP-led inventory is high, capital chasing such deals remains limited to a small universe of buyers. Private equity firms like Leonard Green have seen opportunities to move into the under-capitalized space.

The RMB fund targets Chinese LPs and aims to hold its first close this year.