Tail-End Funds

An analysis of private equity funds by Upwelling Capital shows holding funds for longer than 10 years brings more downside risk than upside potential.

The Swedish life insurer sold stakes in funds managed by Bridgepoint, EQT and IK, among others.

The firm used its latest fund to acquire positions in funds managed by Scottish Equity Partners and Gresham, having bought several UK-based assets in 2018.

The tail-end specialist is seeking $250m more than it raised for its predecessor, Secondaries Investor has learned.

The stakes were sold by a mature fund of funds vehicle and were in vehicles managed by EQT, BC Partners and other big names.

Executives from BRG discuss the alternatives to liquidity for mature funds that are struggling to access the secondaries market in this sponsored Q&A.

Buyers who acquire assets from a fund that is winding down need to be aware of several key issues, including the lack of a counterparty from which to recover any losses, according to Proskauer's Andy Shore.

Ambiguity around who pays for what when a vehicle comes to the end of its term could scupper growth in the GP-led secondaries market.

Having offloaded a portfolio of 19 positions in March, the pension plans to strike again in the 2019 fiscal year.

The endowment sold a stake in Apax's 2005-vintage fund, which contains fashion house Karl Lagerfeld, among other assets.