Secondaries

The market for GP-led deals has been overshadowed by large LP portfolio sales, but certain deals, especially those with what buyers consider high-quality assets, are finding their way to final close.

The €34bn AXA Investment Managers Prime unit is building out its capabilities across GP stakes, NAV lending and secondaries.

It’s not unusual for new products to come under scrutiny in their ‘growing up’ phase, but some concerns around NAV loans may be misplaced, write Samantha Hutchinson, Brian Foster and Mike Hubbard at Cadwalader, Wickersham & Taft.

From regulation to fund structures, change is afoot as the private equity industry adapts to an evolving economic environment, says head of McDermott Will & Emery’s investment funds group, Ian Schwartz.

Whether transacting on the secondaries market or adapting to new regulations, having access to the right expertise, data and analytics capabilities will help investors keep pace with change, says Alter Domus CEO Doug Hart.

The market is only starting to scratch the surface of opportunities around AI and retail capital, but these developments must be approached responsibly, says Pomona Capital chief executive Michael Granoff.

The overallocation and liquidity pressures driving LPs to slow new fund commitments are also the reason why now could be an ideal time to be a secondaries buyer, say Adams Street Partners’ Jeff Akers and Joe Goldrick.

The primary motivation for LPs to consider selling PE fund stakes is the need for liquidity and strategic repositioning, according to a report from Montana Capital Partners.

Some of Flexstone’s clients are expected to raise their Asia-Pacific allocations from 10% to 15-20%, Eric Deram, managing partner at Flexstone Partners, told PEI.