Secondaries

Lead buyers in some recent transactions have been able to negotiate a less than 1% management fee, according to a paper from Proskauer.

GP-led deal activity has slowed in the market downturn as buyers look for mostly high-quality assets and continue to seek diversity through LP portfolio sales.

Private equity firms are looking at experientiality and brand affinity to connect with consumers and capture future spend.

Co-investment remains a compelling proposition for investors. However, continuation vehicles could soon become a competitive force.

The teachers’ pension portfolio is among several that have moved through the market this year, helping to drive secondaries volume even as activity on the GP-led side of the market remained muted.

A disconnect exists in the industry between GPs who view continuation funds as a desirable way to hold certain assets beyond the limits of a traditional private equity fund, and LPs who generally would prefer a regular exit.

Infrastructure and real assets accounted for around 9% of estimated total volume in the first half, according to Greenhill & Co’s latest volume survey.

The deal is Partners Group's largest secondaries deal on a total adjusted commitment basis, a source said.

Industry heavyweights anticipate a wave of capital to come into private markets asset classes in the coming years – a dynamic that seems inescapable.

Sources point to an influx of deals hitting the market toward the end of summer that may drive volume, especially as pricing has improved.