Stapled Deals

Earlier this month an SEC official speaking at an industry conference signaled the US regulator’s interest in stapled secondary deals. Do they create situations where fiduciary duty may be skirted?

Navigating full pricing, the rise of restructurings and the use of seller financing in today’s booming secondaries market were among the topics debated recently in New York at a PEI roundtable.

The firm paid €150m for limited partner interests in Funds IV and V, and committed roughly €65m to Doughty Hanson’s latest fund in market.

Neuberger Berman has completed some stapled transactions but most of today’s opportunities come from low-quality GPs, said head of NB Alternatives Anthony Tutrone.

DuPont Capital Management now allocates less than 10% of its flagship private equity fund for secondaries deals.

GP-led restructuring transactions have become more acceptable for buyers and are expected to be a growing trend over the next few months, according to Credit Suisse private fund group director Mark McDonald.

The direct secondaries firm has invested in a round of funding for Onzo, a company it acquired through a staple funding transaction in 2012.

The complex sale of CVCI fund interests by TRG includes Citigroup balance sheet, employee and client money that push it in excess of $2bn.