Capital Allocators – Inside the Institutional Investment Industry Jon Madorsky – Navigating the Evolution of Private Equity Secondaries (EP.448)
May 29, 2025
Jon Madorsky, Managing Partner at RCP Advisors, shares insights on the evolution of the private equity secondaries market. He discusses how it transformed from being overlooked to a vital investment strategy, emphasizing transaction types and capital sources. The impact of AI on data handling in this space is also explored. Jon highlights the importance of asset quality and strategic negotiation in secondary transactions, along with his passion for vintage cars and the significance of mentorship in shaping the next generation of investment professionals.
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Jon's Early Entrepreneurial Spirit
- Jon Madorsky shared early entrepreneurial ventures like selling mangoes and washing boats as a preteen in Miami.
- These experiences embedded an entrepreneurial spirit that carried into his finance career.
Growth of Secondary Market
- The secondary market evolved from a niche, opaque market to a large, professionalized industry.
- Market growth accelerated after the 2008 financial crisis, reaching $170-$180 billion volume by 2024.
Shift to GP-Led Transactions
- GP-led secondary transactions shifted from restructuring distressed assets to recapitalizations.
- By 2020, GP-led deals represented about half of the secondary market volume.