Tail-End Funds

Hollyport's John Carter and Elm Capital's Etienne Deshormes delve into why the opportunity in the tail-end secondaries market has grown, yet the number of buyers remains concentrated.

As private markets AUM continues to grow at a clip, so too does the number of legacy funds held onto by institutions. Hollyport's John Carter and Elm Capital's Etienne Deshormes join Madeleine Farman in the latest edition of Second Thoughts.

The firm is seeking $500m for a dedicated GP-led vehicle which has the potential to deliver enhanced returns.

As secondaries has exploded in popularity, reaching a record volume level last year of about $130bn, the growth of the talent pool has not kept up.

Despite the shift to newer vintages, early distributions and higher IRRs remain important to secondaries investors, said managing director Cari Lodge.

The $25.3bn US public pension wants to sell private equity fund stakes and divest of non-strategic relationships, documents show.

Panelists at PEI's CFOs & COOs Forum, held over the summer, spoke of how the standard GP structure is straining under the weight of value yet to be realised.

The original deal was set to be one of the largest GP-led secondaries ever, but well into the process Panasonic decided to acquire the largest asset, supply chain software provider Blue Yonder.

BlackRock, GIC and Lexington Partners co-led the deal, the third inaugural continuation vehicle this month.

Private Equity International CFOs & COOs Forum panellists say the standard GP structure is straining under the weight of value yet to be realised.