Institutional investors like Korea’s National Pension Service entering the buyside is crucial if the market is to grow.
There are some sizeable LP-led portfolios out in the market. However, one LP believes collateralised fund obligations and NAV loans could provide attractive alternatives to traditional portfolio sales.
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 court of appeals decision in the US this week to render null and void the SEC’s private fund rule doesn’t signal the end of efforts to better protect investors.
Amid the broadening supply of private wealth-focused evergreen vehicles, ICG and Dawson Partners are the latest managers to join the fold with funds focused on secondaries.
Not every firm has smashed the lights out when it comes to fundraising for vehicles focusing on concentrated bets.
While impact secondaries transactions remain a relatively small part of overall secondaries volume, these vehicles can offer more certainty around impact-linked growth stories compared with their blind-pool counterparts.
A survey from the credit secondaries advisory firm suggests the strategy has continued its ascent with more deals, stiffer competition and a wider group of participants.
Uncertainty about the use of proceeds poses an issue for NAV lenders looking to manage ESG risks.
Reports of the benefits of preferential terms for investors who negotiate and structure a deal may be greatly exaggerated.