Secondaries

Pricing of assets and LP stakes remain points of contention between buyers and sellers, which has made it challenging for secondaries deals to reach final close.

Secondaries investors can find unparalleled alignment in GP-led transactions with lower mid-market managers, says Christiaan van der Kam, head of secondaries at Schroders Capital.

A fairness opinion from an independent provider will offer greater assurance to all parties in a GP-led deal, say Stout’s Kim Randolph and TJ Hope.

Single-asset continuation vehicles enable secondaries investors to gain exposure at scale to some of the highest quality assets in private equity, says ICG Strategic Equity’s Ricardo Lombardi.

Macro conditions are prompting a broader array of financing mechanisms in GP-led deals, which could help catalyse greater market adoption, say Investec’s Stuart Ingledew and Sharon Thandi.

Clear transaction rationale, defendable valuation positioning and a strong show of conviction from sponsors is helping buyers to get comfortable with continuation fund deals in a tough macro environment, says Matt Wesley at Jefferies.

Proactively tracking assets across global themes can provide an early edge in continuation fund opportunities, say Partners Group’s Anthony Shontz and Roy Baumann.

Availability of capital is the main challenge holding back explosive growth in the GP-led secondaries market, say PJT Partners’ Dayan Abeyaratne, Brian Levine and David Perdue

Today’s secondaries technology can provide flexible solutions for GPs and LPs during times of market turmoil, say Mary Lavelle, Daniel Quinn and Fadi Samman at Akin Gump Strauss Hauer & Feld.

Times of uncertainty offer the buyside a window of opportunity, while sellers can benefit from liquidity, says Miguel Zurita, a managing partner at AltamarCAM Partners.