The sponsor-initiated secondaries market will hit a stumbling block if incumbent LPs’ needs and wishes aren’t prioritised over those of incoming ones.
On the back of the firm's $3.4bn raise for its latest real estate secondaries fund, Harold Hope, global head of Goldman Sachs's Vintage group, says a major repricing of assets is presenting more attractive entry points for buyers.
Institutional investors like Korea’s National Pension Service entering the buyside is crucial if the market is to grow.
There are some sizeable LP-led portfolios out in the market. However, one LP believes collateralised fund obligations and NAV loans could provide attractive alternatives to traditional portfolio sales.
Some LPs have explored ways to share in the future profits of an asset sold out of a CV shortly after the secondaries process closes.
A court of appeals decision in the US this week to render null and void the SEC’s private fund rule doesn’t signal the end of efforts to better protect investors.
Amid the broadening supply of private wealth-focused evergreen vehicles, ICG and Dawson Partners are the latest managers to join the fold with funds focused on secondaries.
From partial exits to continuation funds, more African GPs are turning to secondaries transactions to deliver liquidity back to LPs.
Not every firm has smashed the lights out when it comes to fundraising for vehicles focusing on concentrated bets.
While impact secondaries transactions remain a relatively small part of overall secondaries volume, these vehicles can offer more certainty around impact-linked growth stories compared with their blind-pool counterparts.