Chris Witkowsky
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.
Buyers have explored the deal and at least two firms are understood to have emerged as potential backers.
Around 14% of GP-led market volume in the first half involved growth and venture capital, which was up markedly from the first half last year, according to Lazard’s half-year secondary volume report.
When a CV asset goes bankrupt, if the restructuring plan calls for equity to be wiped out to make sure creditors are repaid, that includes CV investors and rolling LPs.
As the continuation fund market evolves and expands, it is inevitable that some of the assets would fall into bankruptcy.
GP-led deal volume reached an estimated $28bn in the first half, a 56% increase from the same period last year, according to Jefferies’ first-half volume report.
The firm was best positioned to know the asset well, which helped inform its ability to set an appropriate price, according to Kian managing partner Kevin McCarthy.
Secondaries Investor reported in June that the technology, industrial and consumer-focused firm was working with Evercore on a transaction.
Co-investment stakes included in GP- and even LP-led secondaries have become more prevalent as even direct investing LPs seek liquidity in the slow exit environment.
It is understood Lazard’s head of US secondaries advisory Amanda Ugarte will join the investment bank to lead and build out its secondaries advisory team.