Stapled Deals

Tender offers plus staples can be a powerful tool to provide liquidity to cash-strapped LPs; some buyers say they have different thoughts.

As prices generally come with discounts to net asset value, existing LPs have been slow to sell in tender processes.

Many GPs are interested in finding ways to deliver proceeds to liquidity-hungry investors in older funds as well as boosting fundraising in the challenging environment.

The significance of a low take-up rate in a sponsor-initiated secondaries process isn't as cut and dried as it may seem.

The Harvest process allowed LPs in the firm’s seventh and eighth funds to sell their stakes at relatively high prices compared to other recent deals.

Even as secondaries activity slows in the dislocated markets, certain large deals are getting over the line.

A recent deal in Asia shows that secondaries transactions that provide sponsors with primary capital come in all shapes and sizes.

Carlyle, Sun Capital and Harvest Partners are all out in market running tender offers plus a staple – a tool that’s not available to just any GP.

Other big tender processes in the market are being run by Carlyle Group and Harvest Partners, both of which include the potential for large staples of fresh capital.

As fundraising becomes tougher in the volatile market, with many LPs at or above their allocation caps, more GPs may use tender offers as a way to reach their fundraising targets.