Stapled Deals

The significance of a low take-up rate in a sponsor-initiated secondaries process isn't as cut and dried as it may seem.

The Harvest process allowed LPs in the firm’s seventh and eighth funds to sell their stakes at relatively high prices compared to other recent deals.

Even as secondaries activity slows in the dislocated markets, certain large deals are getting over the line.

A recent deal in Asia shows that secondaries transactions that provide sponsors with primary capital come in all shapes and sizes.

Carlyle, Sun Capital and Harvest Partners are all out in market running tender offers plus a staple – a tool that’s not available to just any GP.

Other big tender processes in the market are being run by Carlyle Group and Harvest Partners, both of which include the potential for large staples of fresh capital.

As fundraising becomes tougher in the volatile market, with many LPs at or above their allocation caps, more GPs may use tender offers as a way to reach their fundraising targets.

The JV with property investor ShopOne, struck on the back of a secondaries recap, provides fresh capital to invest in shopping centres in metropolitan areas.

At a time when concentrated deals are all the rage, small primary fund commitments can offer necessary diversification benefits.

The investment firm has committed to a double-down fund that Kibo Ventures will use to co-invest in existing portfolio companies as part of the transaction.