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GP-led secondaries question 10 icon
The regulator turned its attention to secondaries processes last year as part of a wider set of proposals designed to enhance disclosures in private markets.
Two people at a fork in the road
The proposals from earlier in the year include the requirement to obtain a fairness opinion on GP-led transactions and a requirement to report GP-led activity within one business day of close.
NYPPEX and chief executive Lawrence Allen are appealing the ruling by FINRA, which concluded they pose a 'substantial risk' to the investing public.
Secondaries transactions in the asset class often bring more direct and indirect tax issues than those in private equity, write Macfarlanes' James McCredie and Sarah Shucksmith.
Sponsors or GP-led secondaries processes should take care in the language they use to explain why they want to hold an asset for longer, writes Thiha Tun, a partner at Dechert.
The process on a software company owned by Banneker Partners, led by a Vista co-founder, was to be priced off a Q4 stake sale until market sentiment turned.
As the economy turns downward and the rationale behind GP-led deals changes, the SEC’s fairness opinion mandate could be a good thing for the secondaries market.
With their multiple benefits for both the GP and LP, management-led secondaries are rapidly gathering steam in real estate.
Justin Johnson and Chad Rucker of valuations and fairness opinion provider VRC take a look at the regulator’s aims for continuation funds.

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