Chris Witkowsky

Harvest’s tender offer sale is among several that GPs are using to give existing LPs an option to generate liquidity, while trying to boost new fundraisings.

CDPQ is among several sellers who have chosen to test pricing in the market, rather than engage in a full-out secondaries auction to sell fund stakes.

The situation is an example of the challenges of completing LP portfolio sales in today’s market, with a widening gap between buyer and seller pricing expectations.

Data from Lazard shows that buyers are moving away from single-asset deals priced off a preceding minority stake sale.

Big financial institutions are increasingly looking for ways to expand into secondaries advisory to help meet the demand of the growing market.

As fundraising becomes tougher in the volatile market, with many LPs at or above their allocation caps, more GPs may use tender offers as a way to reach their fundraising targets.

Some large processes are hitting delays as pricing is shifting in the changing markets, and building large enough syndicates for mega-deals has become challenging.

Some portfolios that hit the market this year may take longer than expected to sell or may not transact as buyers look for pricing that reflects the reality of market turmoil.

GP-led deals like CCMP’s anticipated process represented a much larger portion of secondaries deal volume last year and this year to date.

Mozaic Capital is advising on the process designed to rebalance the pension's $120.5bn portfolio, amid the resurgence of LP-led deals.