Secondaries

Offering will give LPs – including those who act as GPs of secondaries funds and fund of funds – and fund administrators asset-level data.

Panellists at PEI Group’s NEXUS 2024 summit discuss the blurring of the lines between secondaries and co-investments.  

Continuation vehicles across different geography, size and industry of underlying assets have generated similar return multiples.

Panelists say fundraising growth can boost bidders and cut pricing spreads.

Driving activity was strengthening pricing, which was helped along by a stabilization in interest rates last year, along with an overall improvement in economic outlook.

LP-led deals drove the bulk of volume last year and accounted for 55% of total trading, according to data from the investment bank shared exclusively with Secondaries Investor.

Continuation vehicles made up around 9% of total PE distributions in 2023 amid sluggish M&A and IPO markets, according to data from Baird.

Traditional LPs contemplating GP-led focused funds have been intent on identifying examples of fully crystallized continuation funds in recent years.

Until some of the more inefficient aspects of the continuation fund process are smoothed out, these deals are not likely to become routine exit options alongside IPOs and strategic sales.

Lead buyers in some recent transactions have been able to negotiate a less than 1% management fee, according to a paper from Proskauer.