Chris Witkowsky

Some firms, like Warburg, have been through large secondaries processes in the past and are more familiar with how it works, sources said.

GP-led deals represented about 46% of the $40bn-$45bn of secondaries volume in the third quarter, according to research from PJT Park Hill.

LP sales accounted for about $40bn, or 59% of activity in the first half, according to Jefferies’ half-year volume report.

A smaller fund means smaller fees, which means potentially less capital to run the organization. And as firms grew over the past five to 10 years, they will face the choice of needing to invest more to continue growing.

The single-asset continuation fund deal is among many that are keeping secondaries professionals busy and sending the market to what could be record volume levels.

As mid-market and emerging managers struggle for a sip of a dwindling pool of capital, opportunities abound for investors who can co-invest alongside GPs.

Victor Capital is among a handful of newer managers that have successfully attracted capital from investors in what many describe as the toughest fundraising environment since the global financial crisis.

It’s this 'stuck in the middle' cohort that is really the prime example of the challenges of the fundraising market today.

William Blair estimates about $72bn in GP-led activity this year, up from around $50bn last year.

Avance’s first fund hit the market in 2020 just as society shut down in the health crisis, completely changing the way private equity firms had to approach prospective investors.