Secondaries

Tender offers plus staples can be a powerful tool to provide liquidity to cash-strapped LPs.

The private equity head at Japan’s ¥10trn university endowment tells PEI how the fund views private markets in the current environment, and why it’s bullish on secondaries.

As prices generally come with discounts to net asset value, existing LPs have been slow to sell in tender processes.

The move is the latest in what has been a slew of relocations in the space as both established and new players look to add talent.

A 147-person-strong global fundraising and secondaries advisory behemoth could become a reality in the coming months, though exactly what that will look like remains largely guesswork.

Many GPs are interested in finding ways to deliver proceeds to liquidity-hungry investors in older funds as well as boosting fundraising in the challenging environment.

Macroeconomic shocks continue to inject uncertainty into the market, making it tough for buyers and sellers to come to terms on pricing.

The portfolio is among several large trades that have hit the market this year and that are helping to drive LP secondaries inventory to more than $20bn.

PEI’s latest GP-led Secondaries Report explores a market that continues to break new ground, despite 2022’s apparent slowdown.

GP-led processes overtook traditional LP deals as a proportion of secondaries volume in 2020, and now account for around half of transaction volume.