Chris Witkowsky
Sources point to an influx of deals hitting the market toward the end of summer that may drive volume, especially as pricing has improved.
GP-led secondary deals like single-asset continuation funds represented about 40% of estimated total market volume in the first half, according to Lazard’s first-half volume report.
With sluggish fundraising and GPs often desperate for capital, LPs are in a stronger position to demand certain concessions that may have been unworkable in the bull market years.
The deal is said to be set to deliver a monster return to selling LPs.
Secondaries professionals stressed in recent weeks that pricing has improved since late last year, and is expected to continue to strengthen.
The adviser has so far hired a team of four from Credit Suisse as it outlines changes to its newly branded private capital advisory unit.
The market for GP-led deals like single asset continuation funds continues to remain muted amid a gap between buyer and seller expectations.
The process is an example of the kind of challenges faced by secondaries participants, with pricing discrepancies continuing to prevent sales from making it to final close.
GP-led deals, which once dominated volume, have taken a back seat to LP portfolio sales, which represented the majority of transactions in the first half of the year.
The process is part of a surge of LP portfolios that have hit the market this year as institutions look for ways to generate liquidity and rebalance their exposure to the asset class.