LPs remain keen to allocate to PE even though the perceived risk to returns has risen materially, according to a survey by the secondaries firm.
The pension moderated the pace of new secondaries commitments, citing a high risk/return bar amid decreased market activity as a result of the pandemic.
A snapshot of law firms’ secondaries work last year by volume, deal count, strategy and more in our latest annual report.
Activity is driven by secondaries and funds of funds aiming to lock in returns and liquidate old vehicles, according to managing partner Etienne Deshorme.
Although the strategy is not front of mind for most investors, a new type of manager-led deal is set to attract more institutional capital.
The top average bid for a buyout fund was close to pre-covid levels at the end of last year, with prices for VC and infra up in year-on-year terms.
Buyers are requesting a bigger GP stake in continuation vehicles and cross-fund investments are on the rise, according to the advisor.
There was a 'significant uptick' in financing requests for GP-led deals in the third and fourth quarter, according to a survey by the lender.
Secondaries funds returned net IRR of negative 1.75% in Q2 – the only strategy to go into negative territory – according to the latest data from the industry body.
Around 38% of capital for secondaries was raised in the fourth quarter, with Goldman Sachs, AlpInvest and HarbourVest accounting for the bulk.
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