Editor's View

Our in-house take on what news, trends and developments affecting the secondaries market means to its different participants. In these weekly commentaries we stir discussion and prompt debate as well as comment on issues important to market participants in a lively and thought-provoking way.

Talking to market participants in Chicago this week, three clear themes emerged: buyers are becoming sellers, restructurings are here to stay and return expectation are way down.
Why cash-rich LPs are a problem and other themes European advisors are buzzing about.
The announcement by the California Public Employees’ Retirement System that it plans to sell $3 billion-worth of real estate fund stakes comes at an opportune time for secondaries buyers and intermediaries who have been building teams and raising new dedicated funds targeting the sector.
Facing competitors with deep pockets and inflated valuations, many traditional direct secondaries investors are steering clear of shiny ‘unicorns’.
Discounts don’t necessarily lead to outperformance. So why are so many market participants fixated on them?
Secondaries buyers and sellers are waiting for more clarity on the impact of the fall in oil prices on energy-focused funds, but opportunities remain in some pockets of the market.
Environmental, social and governance issues increasingly prevent LPs from committing to a specific fund, but might they also cause an uptick in secondaries deal flow?
Earlier this month an SEC official speaking at an industry conference signaled the US regulator’s interest in stapled secondary deals. Do they create situations where fiduciary duty may be skirted?
Hands raised - iStock
We recently caught up with HarbourVest on why and how it will begin offering secondaries exposure to retail investors.
Repairing pre-crisis partnerships is a $100bn market, but the technical challenges are considerable and best practice remains a work-in-progress.
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