GP-Leds

The fund of funds giant has signed a deal to purchase a stake in Portobello Capital II through a new fund structure.

Despite the growing popularity of GP-led restructurings, they still represent only about 10 percent of the private equity secondaries market, Luca Salvato, investment partner at Coller Capital, said at a conference this week.

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.

Increased competition is prompting secondaries firms to find new ways to maintain returns, including using leverage and participating in restructurings, according to Sunaina Sinha from Cebile Capital.

Almost 80% of LPs have taken part in one or more PE fund restructurings since the global financial crisis.

The New York-based firm surpassed its $8bn target and closed the market’s largest secondaries fund to date.

Justin McDougall (pictured) and Panos Tegos have joined the firm’s New York and London offices respectively.

Cebile Capital hasn’t led any fund restructurings or recapitalisations yet, but is in conversations with some GPs, said managing partner Sunaina Sinha.

Ed Gander (pictured), London-based co-head of the global private fund group at Weil, Gotshal & Manges, and associate James Bromley explain their take on the difference between a fund restructuring and recapitalisation.