Evergreen’s newest secondaries entrants

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.

Just over a month ago, Pantheon’s US private wealth head Mike Hutten told Secondaries Investor the firm was “probably about a year or two ahead” of its time with the launch of its dedicated secondaries evergreen vehicle.

News this week that ICG is joining the likes of Pantheon and Coller Capital in offering a secondaries-only evergreen strategy shows that year or two prediction could come to fruition faster than anticipated. Secondaries Investor understands Dawson Partners, formerly Whitehorse Liquidity Partners, has also secured at least $620 million for its first evergreen product Dawson Evergreen 1.

ICG will launch ICG Core Private Equity this year, chief investment officer and chief executive Beno​ît Durteste said on the firm’s full-year earnings call this week. The vehicle will offer US wealth investors “differentiated access to private equity through the secondary market”, Durteste said.

News of the product launch comes off the back of positive recent fundraising news for the London-listed manager. On that same call, Durteste said its GP-led focused Strategic Equity Fund V is already larger than its $5.3 billion predecessor. That fund holds the record by a country mile in relative terms for the largest amount of capital raised for a fund dedicated to concentrated bets. The firm’s debut LP-led focused fund closed on $1 billion and was oversubscribed, Durteste said, adding that he wouldn’t be surprised if this strategy could reach $10 billion in size per vintage at some point.

For the secondaries market itself, the emergence of private wealth investors is expected to be transformative, market participants that have these vehicles or have advised on these funds have told Secondaries Investor. Dawson’s managing partner and founder Yann Robard told attendees at PEI Group’s Nexus conference in March that private wealth investors will make up half of his $1 trillion secondaries fundraising prediction for 2031.

Secondaries Investor and affiliate title Private Equity International have written at length about the benefits of secondaries for evergreen vehicles – funds that do not have to return capital to investors after a defined time period – as well as potential barriers to entry when it comes to adopting a secondaries strategy within these funds. Resource and expertise is required.

For those in the secondaries market unfamiliar with the nuances of how these vehicles work and invest, now’s the time to get researching. From what we’re seeing, it’s a given more firms will come out with evergreen funds as competition for non-institutional capital intensifies.

Write to the author: madeleine.f@pei.group