Chris Witkowsky
Fund of funds sales represented the majority of LP transactions by asset managers last year, according to a recent full-year 2023 volume report.
The Point Investment sale is part of a wave of LP secondaries driving activity in the market this year.
The single-asset continuation fund process is part of a wave of such deals GPs are attempting as a way to deliver proceeds to limited partners in older funds at a time of slow exit activity.
The transaction is in the early stages and could reach $2bn in size, sources have told Secondaries Investor.
Inventory on the GP-led side of the business is high and the completion rate for such deals is said to hover around 50%.
More LPs are considering secondaries sales as pricing has strengthened since last year, with high-quality buyout funds capturing pricing at the 90% or higher net asset value range.
As secondaries activity accelerates, more traditional buyout shops are exploring adding these capabilities.
The deal is an example of the type of 'clean up' deals routinely run by fund of funds and secondary shops.
The deal would allow Rubenstein to sell partial stakes in several assets, which will support his investment in the Baltimore Orioles Major League Baseball franchise, sources said.
The deal is part of a wave of LP secondaries driven by fund investors' desire to get proceeds from older funds.