VIDEO: What’s the regulator’s view on secondaries transactions?

In this two-minute sponsored video, Withum‘s Tom Angell discusses when a regulator may be concerned that an investor is not getting a "fair shake on the deal."

In this two-minute sponsored video, Withum‘s Tom Angell discusses what regulators look for in secondaries transactions. Thirty-two percent of secondaries deals are initiated by general partners, he says, and regulators are most interested in conflicts of interest where the investor is potentially not getting a “fair shake on the deal.”

“There have been enforcement actions where a GP had bought out some LPs and they used the year-end valuations and they were doing the deal the following September,” Angell said. “There was definitely an increase in valuations but they were using stale older deals to the betterment of the GPs and not the LPs.”