The use of deferred payments is increasing as sellers and buyers seek mutually beneficial ways to bridge deals.
Rather than wait out overallocation, LPs have headed to the secondaries market to continue their investments into private assets. The opportunities, however, far outstrip demand.
The SEC’s vote this week that makes third-party opinions in continuation fund transactions mandatory was a practice that was already becoming a market norm.
There were 15 $1bn-plus LP-led portfolios brought to market in the first half of 2023, and market participants anticipate more LPs will follow suit. How many transactions will get over the line?
Listed alternative asset managers have been sharing their outlooks and fielding questions from analysts on the secondaries market.
A confluence of dynamics is driving secondaries activity in the asset class – providing dealflow and attracting more buyside interest.
There’s an interesting dynamic playing out in the secondaries market that suggests LPs’ thinking about how to manage their portfolios is evolving.
Early estimates for first half activity show secondaries transaction volume is off to a slower than anticipated start this year; yet, the market is expected to pick up some of the shortfall.
The asset class needs to modernise and confront the tension between assets’ long lives and different investors’ liquidity needs.
As buyout shop Astorg makes moves to fill its secondaries bench in its effort to back continuation funds, the key will be winning over firms that may view it as a competitor.