Regulation

Sponsor-initiated processes will have to be reported to the regulator within 60 days from the end of each quarter.

Some LPs have felt so frustrated at the way continuation fund processes have been run that they have decided not to re-up with their manager, representatives from the investor body told Secondaries Investor.

Regulators have accused funds of foisting their fiduciary duties onto outsourced firms.

Decision-making can be a resource-intensive process, although it is one that LPs are becoming more familiar with.

The regulator turned its attention to secondaries processes last year as part of a wider set of proposals designed to enhance disclosures in private markets.

The proposals from earlier in the year include the requirement to obtain a fairness opinion on GP-led transactions and a requirement to report GP-led activity within one business day of close.

NYPPEX and chief executive Lawrence Allen are appealing the ruling by FINRA, which concluded they pose a 'substantial risk' to the investing public.

Secondaries transactions in the asset class often bring more direct and indirect tax issues than those in private equity, write Macfarlanes' James McCredie and Sarah Shucksmith.

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.

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.