Chris Witkowsky
The goal is to back treasure assets that sponsors are trying to hold and grow, even when they run up against structural fund issues like tapping out reserve capital.
Even as secondaries activity slows in the dislocated markets, certain large deals are getting over the line.
Secondaries activity has slowed as a result of market dislocation and a wide gap between buyer and seller expectations.
The portfolio is understood to comprise private equity, credit, growth and infrastructure stakes in a Campbell Lutyens-advised process.
Economic dislocation spurred by runaway inflation and rising interest rates is making it harder to close secondaries deals as the gap between buyer and seller pricing expectations widens.
The market has been waiting to see what kind of reception TPG’s pool would attract from LPs, being a first-time fund and a new platform for the mega-firm.
Other big tender processes in the market are being run by Carlyle Group and Harvest Partners, both of which include the potential for large staples of fresh capital.
The deal, a concentrated-asset GP-led secondaries process, is among a few that have been able to navigate to final close this year despite the widening bid/ask spread.
Harvest’s tender offer sale is among several that GPs are using to give existing LPs an option to generate liquidity, while trying to boost new fundraisings.
CDPQ is among several sellers who have chosen to test pricing in the market, rather than engage in a full-out secondaries auction to sell fund stakes.
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