Using leverage in private equity secondary transactions has its advantages but also raises issues around the form of security of such financings that both buyers and sellers should be aware of, explains Ted Craig, a partner with MJ Hudson in London.
Historic infrastructure performance suggests now is the time for increased infrastructure secondaries opportunities in Canada, writes Nigel Brindley, co-founder of investment advisory firm Stratus Infrastructure.
There are certain alternatives a company should consider in the 409A valuation process when permitting secondary sales, writes Ira Simkhovitch, a senior associate at Industry Ventures.
About 63 percent of investors surveyed by Investec are likely to use third-party debt for a secondaries acquisition in the future, explains global head of fund finance at Investec Simon Hamilton.
Leverage is not new to the secondary market, but it has become more prevalent and consequently LPs should keep an eye on the impact of its use, says Chason Beggerow, a partner at private equity advisory firm Altius Associates.
The infrastructure secondaries market will benefit policy-makers and investors by stimulating growth and promising attractive yields, writes Charles Ford, of counsel at Hogan Lovells.
There's a new wave of supply in emerging market secondaries and buyers with local expertise are best placed to exploit these opportunities, says PineBridge's Valerie Chen (pictured), Cristina Alcaide and Amit Mahajan.
Opportunities to offer employees liquidity in company shares are increasing, writes Industry Ventures' founder Hans Swildens and senior associate Ira Simkhovitch.
The use of leverage in the secondaries market has helped drive pricing and deal volume, but not all investors use the same type of leverage, explains Sunaina Sinha, founder of Cebile Capital.
Acquisitions of listed funds of funds can present excellent opportunities for sophisticated buyers willing to navigate a public acquisition, explain Katherine Ashton and David Schwartz, of Debevoise & Plimpton.