New and existing secondaries firms are becoming more focused on particular niches, which is a boon for LPs wanting more specificity but also a sign that returns will be less uniform in the future.
New Mexico Educational Retirement Board (NMERB)'s deputy chief investment officer explains why the pension set up a separate account with Siguler Guff to focus on secondary investment opportunities in distressed debt and special situations.
Benoit Verbrugghe, head of Ardian US, reveals the secondaries firm’s strengths, from its in-depth knowledge of assets obtained through its primary fund of funds business to its proprietary technology.
While most traditional secondaries market participants scoff at electronic exchanges’ impact on their strategies, some are engaging with them on behalf of their portfolio companies.
The flow and pace of transactions this year is looking very different to previous years, reflecting several new dynamics in the secondaries market.
Merely trading LP positions won’t address deep problems of funds that haven’t raised new capital for at least eight years, explains Joncarlo Mark, founder of Upwelling Capital Group.
There are many challenges to US pension plans becoming more active buyers in the secondaries market, but it's the full pricing that's really holding them back.
Staying small and leveraging relationship are the key to the secondaries advisories business, says Solomon Owayda, who recently founded Mozaic Capital Advisors with Christine Patrinos.
Stapled deals and restructurings can fall through for many reasons, but it’s often related to pricing that’s too low and LPs who don’t feel the need to sell.
Although high start-up valuations are making direct secondaries investments more challenging, they are also making the exit environment more attractive, explains Zach Abrams, managing partner at Stratim Capital, which provides liquidity to shareholders and venture capital investors in privately-held companies.