Alignment of Interest

A lack of full exits means it is too soon to say how well this latest generation of GP-led secondaries will fare, but the ingredients for success are all in place, says Jochen Mende at UBS Asset Management.

Identifying a credible lead investor that will deliver on execution can be more important than extracting the last dollar on price, says Glendower Capital (CVC Secondaries) managing partner Chi Cheung.

Amid today’s environment and ongoing growth in GP-led deals, rolling carry and putting additional capital at risk are no longer enough to guarantee alignment, says Morgan Stanley Investment Management’s Nash Waterman.

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.

Staying aligned with clients and seeking GPs who focus on real value creation keep private wealth investors hungry for PE.

A disconnect exists between GPs and LPs on the use of financing tools such as NAV loans and continuation funds.

The state-backed investor is doubling down on GP due diligence as fundraising timelines lengthen, its CIO for private and strategic investments tells PEI.

As some GPs attempt to codify the removal of LPAC review and consent for continuation vehicles, they will face a ream of objections among investors.