GP-Leds

Sponsors or GP-led secondaries processes should take care in the language they use to explain why they want to hold an asset for longer, writes Thiha Tun, a partner at Dechert.

What was an exception is now mainstream, with buyers using leverage as bridging finance and to boost returns, according to Investec.

The booming secondaries market is reflected in this year's survey, with several respondents closing on twice the deal volume recorded in pandemic-hit 2020.

The transaction involves the asset manager and other institutional investors acquiring a structured minority interest in a portfolio of assets as part of the UBS-advised deal.

The deal is among a handful of GP-led secondaries processes that have moved through the market, which has become more challenging because of pricing uncertainty.

The $59.4bn Swedish insurer doesn't want to support a phenomenon where a 'big chunk of money' is left on the table for LPs that is then handed over to another party.

A market downturn, diverging views on valuations and ‘risk off’ attitudes are causing many GP-led deals to be repriced.

The process on a software company owned by Banneker Partners, led by a Vista co-founder, was to be priced off a Q4 stake sale until market sentiment turned.

GP-led activity is picking up thanks to a decline in exit activity during the pandemic and rising familiarity with the practice.

The Canadian pension giant has spent two years rebuilding its senior secondaries team with internal promotions and hires from GIC and Partners Group.