Marine Cole
Why cash-rich LPs are a problem and other themes European advisors are buzzing about.
The listed fund of funds committed to two HarbourVest funds with secondaries exposure last month.
The Swiss-based firm previously purchased a stake in the London-based private equity firm, which invests in smaller UK growth companies.
Fund restructurings have become a common occurrence in the secondaries market. Jeff Hammer and Paul Sanabria, managing directors and co-heads of the illiquid financial assets practice at Houlihan Lokey, explain what makes a GP a good candidate for a fund restructuring and how to ensure that LPs are getting the best possible deal.
The Los Angeles-based investment bank, also an advisory firm in the secondaries market, plans to offer $100m in common stock and to list on the New York Stock Exchange.
The fund is currently in the midst of fundraising and is targeting $2.5bn.
The announcement by the California Public Employees’ Retirement System that it plans to sell $3 billion-worth of real estate fund stakes comes at an opportune time for secondaries buyers and intermediaries who have been building teams and raising new dedicated funds targeting the sector.
Increased competition is prompting secondaries firms to find new ways to maintain returns, including using leverage and participating in restructurings, according to Sunaina Sinha from Cebile Capital.
Secondaries professionals also expect that returns will remain below 13% in the next three to five years, according to a recent survey.
One of the main drivers behind the purchase was portfolio company Charming Charlie.