Secondaries Investor’s Second Thoughts SI Decade: Why specialised secondaries are poised for growth
Oct 2, 2024
Jeremy Coller is the Founder and CIO of Coller Capital, a pioneer in the secondaries market, while Yann Robard leads Dawson Partners, specializing in structured liquidity offerings. They discuss the booming niche of specialized secondaries, noting that 85% of recent capital was for private equity, and how firms are adapting with dedicated teams for single-asset continuation funds. The conversation highlights innovative strategies in private credit and the evolving role of preferred equity in enhancing liquidity, signaling a transformative growth trajectory through 2030.
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Niche Firm In An Unlikely Location
- Bex Capital is headquartered on the French Riviera and buys stakes in funds of funds and other secondaries funds.
- Adam Le highlights Bex as an unconventional example of niche secondaries specialization.
Failed Intellectual Property Bet
- Jeremy Coller recounts buying corporate venture portfolios and then trying intellectual property portfolios like Philips MPEG technology.
- He says IP secondaries failed because you either litigate or develop the products, making it an unsuccessful strategy.
Secondaries Have Broadened Widely
- The secondaries market now spans many asset classes beyond buyout LP stakes, including real estate, infrastructure, timberland and agriculture.
- Data show 15% of secondaries capital recently targeted non-private-equity strategies, rising from higher levels earlier.