Stapled Deals

The Malaysian private equity firm is giving LPs in its 2013-vintage, $1.3bn Fund VII an exit option, Secondaries Investor has learned.

The transaction involves the US mid-market firm's $3.2bn Court Square Capital Partners III fund.

We weigh up the pros and cons of the most common types of GP-led secondaries.

The firm, founded by two former senior Goldman Sachs executives, is running a tender offer involving around $4.6bn of net asset value.

The process comes as the Carlyle Group also explores using secondaries on its 2013-vintage Sub-Saharan Africa fund.

Emerging market GP-led deals are rife with difficulties but Carlyle’s name and the dynamics of the secondaries market suggest a deal can be done on its Africa fund.

The private equity giant approached secondaries buyers about acquiring LP stakes in its 2013-vintage Sub-Saharan Africa Fund and making a stapled commitment to its successor.

Blue chip managers are using stapled secondaries deals to boost fundraising and provide liquidity to LPs. In this 17-minute podcast, lawyers from Proskauer, Debevoise & Plimpton and MJ Hudson discuss how GPs and LPs should approach this growing transaction type.

The impact of SEC attention, the right way to get a fairness opinion and the growing influence of the LPAC – just some of the topics discussed on Secondaries Investor’s upcoming stapled deals podcast.

Full disclosure and fairness opinions are the best ways to mitigate potential conflicts of interest in stapled deals.