As the economy turns downward and the rationale behind GP-led deals changes, the SEC’s fairness opinion mandate could be a good thing for the secondaries market.
Private equity’s fastest growing sub-sector is also getting market participants excited in adjacent asset classes.
Some public pensions appear to think any sunlight allowed on their private equity decision-making processes would cause irreparable damage to their ability to continue investing in the asset class.
LP scepticism, co-investors’ grievances and a disregard for fairness opinions were some of the secondaries-related themes to emerge at last week’s CFOs and COOs Forum in New York.
Here’s a preview of PEI’s upcoming secondaries roundtable and what participants think is in store for a market that seems to know no bounds.
The firm, which raised €2.6bn this week for its debut lending fund, is agnostic about whether it’s viewed via a preferred equity or credit lens.
A simultaneous numerator, denominator effect may leave some LPs significantly overallocated at a time when their GPs are asking for re-ups.
Writing the biggest cheque doesn’t necessarily mean you structured the transaction – or bothered to have a beer with the counterparty to get to know them.
New types of transactions are emerging that stretch the definition of secondaries in what is a deceptively large and growing market.
By making GP clawbacks gross of taxes, the new rules could lead to the resurgence of the archaic original American waterfall.