The firm’s best performing secondaries vehicle by investment return is its 2000-vintage Lexington Capital Partners IV, documents from a US pension show.
Buyers paid more than 90% of NAV for fund stakes in the strategy as a hedge against possible market falls, according to Setter Capital.
The distribution waterfall, a narrowing between gross and net IRR spreads and disclosure and transparency are among the key terms and conditions driving the GP-LP dynamic, according to the law firm.
Setter Capital says timber accounted for the majority of transactions within the $331m in secondary sales of stakes in agriculture and timber funds recorded in 2016.
In this extract from The Secondaries Market, James Sunday and Min Zhou of Landmark Partners look at who’s buying real estate secondaries, the geographic exposure of funds traded and the size and structure of transactions.
Fewer buyers sought IRRs of above 15% last year compared with a year earlier, a survey by advisory firm Cebile Capital has found.
In the extract from The Secondaries Market, James Sunday and Min Zhou of Landmark Partners offer an overview of the real estate sub-asset class and look at which organisations are selling.
Data from the Institutional Limited Partners Association shows secondaries was the worst performing strategy on a quarterly basis in the third quarter of 2016.
The investment banking arm of CBRE Group advised on 187 fund interests that were transferred during the year, with deal volume brokered by the firm hitting a record $2.4bn.
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