Secondaries

Credit Suisse's 2022 Secondary Market Review expects GP-leds to experience a resurgence in 2023 after being outpaced by LP-leds last year.

The fund of funds platform, which includes commitments to venture funds as well as private credit, continues to operate.

Such transactions can generate liquidity for LPs, validate a mark and allow a GP to retain control of a well-performing asset, says Todd Miller of W Capital Group.

The market is in need of a supply solution, but is it fit for one?

The small subsector is gaining interest, but financing challenges persist.

Discount levels as high as 30% are unlikely to entice any but the most desperate sellers to approach the secondaries market for liquidity relief.

The amount of dry powder dedicated to impact secondaries increased markedly in 2022 – if from a very low base.

LP portfolio sales, which came back and then faded out again as the markets turned earlier this year, are expected to be a major part of volume in the second half.

There is misalignment between investors and GPs on the topics of obstacles, red flags and expectations, a Capstone survey finds – however, the market is expected to go through further standardization.

Until technology can provide the market with sufficiently standardized transaction templates, its progress will be accretive, not revolutionary