The top 30 secondaries managers over the last five years have raised an eyewatering $190 billion in that period.
DRY AS A BONE
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The SI 30 ranking is based on the amount of equity capital raised for dedicated secondaries pools of capital over a roughly five-year period. This year, the window spans from 1 January 2012 to 30 June 2017.
We give highest priority to information that we receive from or confirm with the fund managers themselves. When secondaries firms confirm details, we seek to “trust but verify”.
Some details simply cannot be verified by us and in these cases we defer to the honour system. In order to encourage co-operation from secondaries fund managers that might make the SI 30, we do not disclose which firms have aided us on background and which have not. In the event we do not receive confirmation of details from the firms themselves, we seek to corroborate information using firms’ websites, press releases, news reports and limited partner disclosures, among other resources.
Secondaries capital: For the purpose of the Si 30, the definition of secondaries capital is: capital raised for a dedicated programme of investing directly into the secondaries market. This includes equity capital for diversified private equity, real estate, infrastructure, buyout, growth equity, venture capital and turnaround or control-oriented distressed secondaries investment opportunities. We also count any portion of a fund of funds earmarked specifically for secondaries investments.
Capital raised: Capital definitively committed to a secondaries direct investment programme. In the case of a fundraising, it means the fund has had a final or official interim close after 1 January 2012. We count the full amount of a fund if it has a close after this date. We count the full amount of an interim close (a real close, not a ‘soft-circle’) that has occurred, even if no official announcement has been made. We also count capital raised through other means, such as co-investment vehicles.
What does NOT count as secondaries?
Direct private funds: We do not count capital raised for funds that invest directly into the primary markets, whether this be for private equity, real estate or infrastructure.
Hedge funds: We do not count hedge funds, meaning funds that target liquid securities or trading strategies.
Opportunistic investors: Some large entities have the ability to carry out secondaries deals on an opportunistic basis. We do not count these groups because there is no hard capital allocation to their direct-investment programmes.
Debt, including mezzanine debt funds: We only count equity investment funds for this ranking. All debt funds, including mezzanine debt funds, will not be counted towards the ranking.
PIPE investments: The Si 30 counts private capital raised for secondaries investments. Therefore, we do not count capital raised for PIPE deals.
Deal-by-deal: We do not count capital raised on a deal-by-deal basis to be invested into secondaries opportunities.