pricing

A market downturn, diverging views on valuations and ‘risk off’ attitudes are causing many GP-led deals to be repriced.

The booming secondaries market for growth assets is on pause, although deals can still happen if sponsors offer a discount.

Oliver Gardey and Ryan Levitt discuss market volatility, the need for specialism in secondaries and the likely drivers of LP deals in 2022.

A simultaneous numerator, denominator effect may leave some LPs significantly overallocated at a time when their GPs are asking for re-ups.

Declining multiples spell trouble for deals done in recent years, when valuations were at historic highs, said ex-Ardian secondaries head Vincent Gombault.

Despite the shift to newer vintages, early distributions and higher IRRs remain important to secondaries investors, said managing director Cari Lodge.

As Brazilian pensions finish divesting their private assets, buyers hope a primary investing boom will have positive implications for the secondaries market.

The CalPERS sale is among a slew of traditional LP portfolio sales to hit the market since the fall, with prices high and buyer interest piqued by more diversified investments.

In an extract from a whitepaper aimed at LPs, Tradition's advisory team discusses the dynamic between bids, NAVs and public markets, and what it means for sellers.

A stake in CD&R's 2018-vintage fund sold for 124% of NAV, according to a survey of 52 transactions by Palico, with average pricing of 98.5%.