Greenhill Cogent‘s secondaries advisory unit advised on 83 sales of limited partnerships last year as revenues from its capital advisory business slipped due to a slowdown in deal activity amid market volatility.
While volume was up, the capital advisory team, which includes the secondaries business, generated 15 percent of all advisory revenues, down from 21 percent in 2015, the firm said in a statement announcing its fourth quarter 2016 results.
“Uncertainty and then the shock around Brexit had a meaningful impact on deal announcements in Europe,” Scott Bok, Greenhill’s chief executive, said in an earnings call. Looking ahead, Bok said “assuming reasonably stable markets” that they expect to generate “more revenue in both the primary and secondary capital advisory businesses in 2017”.
The firm advised on 51 secondaries deals in 2015, about 90 percent of which were traditional LP fund stakes and 10 percent were GP-led transactions by dollar value, as Secondaries Investor previously reported.
The dollar value of its capital advisory business was also “slightly down” from 2015, the firm said.
Overall the firm recorded fourth quarter revenues of $101.6 million, up 34 percent from 2015’s fourth quarter, and up on the $76.6 million booked for the third quarter. Annual revenue increased 28 percent on 2015 to $335.5 million.