Roughly 84 percent of limited partners have been involved in at least one fund restructuring in the past two years, according to a survey conducted by mid-market investment bank Sixpoint Partners.
A majority, or 42 percent, of the LPs participated as both a buyer and a seller in separate transactions, meanwhile 38 percent participated as a buyer only in at least one deal.
Sixpoint’s survey results are in line with Cogent Partners’ estimate that GP-led transactions accounted for 13 percent of total secondaries deal volume last year.
Fund restructurings of the second half of 2014 include Diamond Castle and Perseus Capital.
ICG Strategic Secondaries and the former NewGlobe Capital team completed their first-ever secondaries deal, acquiring a portfolio of private equity assets from Diamond Castle IV. A new $860 million fund was created and is currently being managed by Diamond Castle.
“The market for complex private equity fund restructurings is now well established as a compelling solution to LPs in older funds, and we believe the opportunity set is growing exponentially as the 2004 to 2008 vintage funds mature,” former NewGlobe founder and global head of secondaries at ICG Andrew Hawkins previously said.
Mid-market private equity firm Centre Lane Partners led the restructuring of five Perseus funds in a process led by Cogent. LPs in the funds were given the option to liquidate their interests – at a discount of roughly 85 percent to 90 percent of net asset value – or roll their stakes into new vehicles.
Other ongoing GP-led deals include the restructuring of Fenway Capital’s two remaining funds. It is understood Nova Capital Management was among four final bidders as of last month.