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Low-funded secondaries and self-reporting to the SEC

Two things on the agenda today: what to do if you have an LP that needs early liquidity, and whether you should be reporting yourself to the SEC.

You just closed your new fund and already an investor wants out? If this ever happens to you, this guidance from secondaries buyer Abe Finkelstein might be useful. Spoiler alert: he suggests looking for a buyer with an active primaries program (like his firm Vintage Investment Partners), as they are used to assesing the manager as much as the portfolio.

Self-reporting: We also gathered some insight into whether – on discovering misconduct in your firm – you should be reporting yourself to the SEC. The answer? It’s a complicated judgement call that balances a possibly more lenient settlement against the risk of unnecessarily alerting the authorities.

Navab’s firm to wind down. Following Alex Navab’s untimely death, the team at Navab Capital Partners – which includes Carlyle’s Ram Jagannath, Warburg Pincus’s Annette Rodriguez and Baupost Group’s Robert Berlin, as well as several ex-KKR senior executives – has decided to wind down the operations of the firm, per a statement. As the firm had yet to officially launch its debut fund or make an acquisition, the wind-down is not expected to be too complex. The more painful part is disbanding the team Navab had put together to make his vision a reality. “We continue to grieve this terrible loss, and in our individual ways, we will cherish Alex’s memory and support his legacy of business and community leadership,” the statement said.

Email prepared by Toby Mitchenall.