Staff Writer
Liquidity challenges seem to be fueling secondaries dealflow, presenting compelling opportunities for buyers, say Tristram Perkins, Ben Perl and Victor Ko at Neuberger Berman.
The next phase of secondaries will see GPs embracing a broader range of interim liquidity solutions, say David Wachter and Todd Miller at W Capital Partners.
As its popularity continues to grow, the secondaries market is seeing increased levels of innovation, competition and regulatory scrutiny, say Gibson Dunn’s Shukie Grossman, Sean McFarlane and Kate Timmerman.
An abundance of deal opportunity and shortage of competition mean that mid-market GP-leds are the place to be, say New 2ND Capital partners Clay Cole and Evert Vink.
After a strong year for LP-led secondaries sales, buyers are shifting their attention to GP-led transactions once again, say Ropes & Gray’s Isabel Dische, Debra Lussier and Paul Van Houten.
Sponsors are increasingly looking for co-investment partners to support growth ambitions in existing portfolio companies or to generate liquidity, say Neuberger Berman’s David Stonberg, David Morse and Joana Rocha Scaff.
Co-investments can add incremental, tactical private equity exposure for a typically lower all-in cost, say Adams Street’s David Brett, Michael Taylor and Craig Waslin.
Firms that provide primary fund capital may have a distinct advantage in secondaries investing, say LGT Capital Partners’ Martha Heitmann and Andrew DiGeronimo.
As GP-led secondaries continue to grow in popularity, TPG’s Michael Woolhouse and Matt Jones argue that these are a distinct discipline from their LP counterparts, requiring specialization to flourish.
Sponsors need to be realistic about price and commit incremental equity on top of a 100% rollover to stand out in today’s market, says Andrew Gulotta, a partner at Sixpoint Partners.