An inside look at the latest market transaction reports and why they differ.
Reporter Adam Le here, filling in while Marine's on the West Coast. Two stories I reported on this week stood out in my mind as they both involved older funds and how – and whether – to find value in them.
The supply of real estate secondaries is increasing dramatically, but it remains to be seen whether there’s enough demand to absorb it all.
Deals are being done faster than ever, with binding bids coming in within a week or two, and large sales completing in half the time. That’s the key takeaway from Greenhill Cogent’s half-yearly volume and transaction data, but there are a couple of other driving factors too.
While the secondaries market is providing a convenient avenue for limited partners to sell fund stakes and access to liquidity, alternatives such as preferred equity have become welcomed opportunities for LPs looking to preserve portfolio upside, explains Pierre-Antoine de Selancy, managing partner and co-founder of London-based 17Capital.
Talking to market participants in Chicago this week, three clear themes emerged: buyers are becoming sellers, restructurings are here to stay and return expectation are way down.
Why cash-rich LPs are a problem and other themes European advisors are buzzing about.
Fund restructurings have become a common occurrence in the secondaries market. Jeff Hammer and Paul Sanabria, managing directors and co-heads of the illiquid financial assets practice at Houlihan Lokey, explain what makes a GP a good candidate for a fund restructuring and how to ensure that LPs are getting the best possible deal.
The announcement by the California Public Employees’ Retirement System that it plans to sell $3 billion-worth of real estate fund stakes comes at an opportune time for secondaries buyers and intermediaries who have been building teams and raising new dedicated funds targeting the sector.
Leerink Capital Partners recently raised a new $192 million fund along with Revelation Partners to invest in direct secondaries in healthcare companies. Scott Halsted, managing director at Revelation, explains the strategy and the current environment for healthcare secondaries investments.