Chris Witkowsky

As part of the system’s policy established in 2022, the pension has been building exposure to areas of private equity it may have skipped in the past such as smaller funds and growth-focused GPs.

Some LPs have explored ways to share in the future profits of an asset sold out of a CV shortly after the secondaries process closes.

A quick exit out of a continuation fund can also raise questions about whether a GP knew about a potential exit even while pursuing the continuation fund, or if the offer came out of the blue.

Fund of funds sales represented the majority of LP transactions by asset managers last year, according to a recent full-year 2023 volume report.

The Point Investment sale is part of a wave of LP secondaries driving activity in the market this year.

The single-asset continuation fund process is part of a wave of such deals GPs are attempting as a way to deliver proceeds to limited partners in older funds at a time of slow exit activity.

The transaction is in the early stages and could reach $2bn in size, sources have told Secondaries Investor.

Inventory on the GP-led side of the business is high and the completion rate for such deals is said to hover around 50%.

More LPs are considering secondaries sales as pricing has strengthened since last year, with high-quality buyout funds capturing pricing at the 90% or higher net asset value range.

As secondaries activity accelerates, more traditional buyout shops are exploring adding these capabilities.