Secondaries

While continuation vehicles may not always be the optimal solution for sponsors and LPs, other attractive liquidity solutions are gaining in popularity, writes Todd Miller, partner at W Capital Partners.

LP-led sales made up 52% of the record $152bn of secondaries volume seen last year, according to Lazard's latest market report.

There have been cases when continuation funds have been 'misused and overused,' according to Teia Merring, senior investment director at USS and chair of ILPA.

Diverse collateral mix of secondaries, portfolio finance and co-investments helps Carlyle unit close above target on $1bn.

Pilot product helps LPs conduct cost-benefit analyses and lets smaller GPs act without advisers.

High net-worth investors have been backing secondaries funds at 'astonishing' rates

The subpar fundraising environment of the past two years has played a role in spurring interest in co-investments, but it’s not the only driving force behind the rising trend.

A study by the bank and the HEC School of Management has also reinforced earlier findings that single-asset CVs perform largely in line with buyout funds, while offering lower return dispersion.