The parties that bear the costs can vary according to the structure of the deal.
Transparency is key to managing conflicts and enabling alignment of interest.
Conditions are favourable for deal-by-deal transactions, adding to the growing ocean of manager types in an already competitive market.
GP-led processes overtook traditional LP deals as a proportion of secondaries volume in 2020, and now account for around half of transaction volume.
Processes that don’t offer a status quo option have begun to crop up more frequently in the GP-led market.
As some GPs attempt to codify the removal of LPAC review and consent for continuation vehicles, they will face a ream of objections among investors.
Three of the young professionals from our list of up-and-coming secondaries leaders give their take on the GP-led market.
Continuation funds have become a more common exit route, enabling sponsors to hold onto their star assets for longer.
There are various stages involved in getting these deals over the line, though greater levels of complexity can stretch timelines.
The top 10 known commitments to 2022-vintage secondaries vehicles totalled $4.77bn, buoyed by ADIA’s whopping $4bn commitment to Ardian’s ASF IX.