Madeleine Farman
Madeleine Farman is a senior reporter for PEI Group’s Private Equity International and Secondaries Investor titles, based in London. Prior to joining PEI, she had covered private equity, private capital and advisers associated with the industry for other newsrooms and publications since 2016. Originally from New Zealand, Madeleine began her career in radio in Auckland.
The firm has made five appointments and has added a further five individuals as part of its 2022 analyst programme in recent months.
When dealing with waterfalls, there are tools that can be used to create economic alignment from the outset.
The firm invested $16.8bn across 27 secondaries deals last year, more than 4.4x the amount it invested the prior year.
An incentivised management team is crucial to ensuring ultimate success in GP-led secondaries deals.
Finding the pricing sweet spot to satisfy sponsors, buyers and LPs is tougher than ever in today’s market.
Conflicts of interest can arise within the LP base as LPACs act in their own interest, not in the interest of the fund.
For the GP, internal alignment is another opportunity to manage team dynamics. Third parties will want to see that the right people participate in the economics.
The firm is currently deploying its 2018-vintage Headway Investment Partners IV, which closed on €372m in 2019.
Some sponsors are still able to drive aggressive terms in GP-led deals, though perhaps not for much longer.
As an increasing number of sponsors turn to secondaries processes, doubts are being raised about the market’s building blocks. Just how aligned is the secondaries market today?