Secondaries

The market for GP-led deals like single asset continuation funds continues to remain muted amid a gap between buyer and seller expectations.

The $173bn institution is offloading PE stakes via secondaries as it looks to deploy more capital into directs, global PE head Jim Pittman tells PEI.

The launch of the strategy, which is focused on secondaries and co-investments, follows a change in Swedish pension regulation allowing higher allocation to alternatives.

The process is an example of the kind of challenges faced by secondaries participants, with pricing discrepancies continuing to prevent sales from making it to final close.

GP-led deals, which once dominated volume, have taken a back seat to LP portfolio sales, which represented the majority of transactions in the first half of the year.

The Singapore-headquartered multifamily office has gathered more than $1bn in AUM within six months of launching and is on the hunt for new GP relationships.

The process is part of a surge of LP portfolios that have hit the market this year as institutions look for ways to generate liquidity and rebalance their exposure to the asset class.

LP volume is said to be the main type of deal buyers are interested in right now, along with select GP-led processes for top assets.

A blend of side letters, income-generating strategies and secondaries has 'reduced the pain threshold' for UBP’s private clients, Michael Ostro, head of private markets group Asia, tells PEI.

While demand for such deals is high, activity has only been steadily increasing this year amid price discrepancies and a limited capital base.