Chris Witkowsky

All players – GPs and LPs – are getting more sophisticated in the CV world, and the processes around these deals will continue to evolve. 

Some firms have been through large secondaries processes in the past and are more familiar with how they work, according to sources.

GP-led deals represented about 46% of the $40bn-$45bn of secondaries volume in the third quarter, according to research from PJT Park Hill.

LP sales accounted for about $40bn, or 59% of activity in the first half, according to Jefferies’ half-year volume report.

The single-asset continuation fund deal is among many that are keeping secondaries professionals busy and sending the market to what could be record volume levels.

Buyers have explored the deal and at least two firms are understood to have emerged as potential backers.

Around 14% of GP-led market volume in the first half involved growth and venture capital, which was up markedly from the first half last year, according to Lazard’s half-year secondary volume report.

When a CV asset goes bankrupt, if the restructuring plan calls for equity to be wiped out to make sure creditors are repaid, that includes CV investors and rolling LPs.

As the continuation fund market evolves and expands, it is inevitable that some of the assets would fall into bankruptcy.

GP-led deal volume reached an estimated $28bn in the first half, a 56% increase from the same period last year, according to Jefferies’ first-half volume report.