Nigel Dawn - Secondaries in Private Markets (EP.378)
Apr 8, 2024
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Nigel Dawn, the Global head of Private Capital Advisory at Evercore, discusses the evolution and significance of the secondary market in private markets. Topics include market trends, motivations, critiques, strategies for navigating the private capital landscape, and advice for sellers and buyers of GP interests.
Evercore leads 30-40% of secondary market deals, facilitating strategic portfolio optimization for LPs.
GP-driven transactions in secondary markets shift towards portfolio repositioning and evolving capital needs.
Deep dives
Growth and Opportunities at TenEast Investment Platform
Michael LaFell, the former Deputy Executive Managing Member of Davidson Kempner, leads TenEast, offering members the chance to co-invest. The platform provides diverse investment opportunities in private credit, real estate, venture and private equity, and more, with a track record of over a decade. TenEast ensures ongoing monitoring and reporting akin to an institutional investment setup.
Development and Importance of Secondary Market by Evercore
Nigel Dawn, the global head of private capital advisory at Evercore, is a market leader in secondary market activities, covering up to 30-40% of all secondary market deals. Evercore has led significant transactions with institutions and public pensions, allowing LPs to navigate the secondary market strategically by removing non-core exposure and enhancing portfolio optimization.
Evolution and Insights into GP-Driven Transactions
GP-driven transactions have evolved over time, with an initial focus on distressed assets shifting towards strategic repositioning of portfolios. Factors influencing GP-driven transactions include growth capital needs, asset realignment between buyouts and ventures, and utilizing the secondary market tactically for portfolio optimization and relative value transactions.
Trends and Future of the Secondary Market
The secondary market is poised for significant growth, potentially reaching $200-250 billion in the GP side alone in the next few years. With new entrants focusing on GP-driven transactions and the rise of retail private equity funds, the market is set for expansion. Trends like emerging private credit liquidity and innovative deals like navalones and GP sponsor tender offers are shaping the market's future.
Nigel Dawn is the global head of Private Capital Advisory at Evercore, where he leads the secondaries business he started a decade ago. Under Nigel's leadership, Evercore had become the market leader in transaction volume and is involved in approximately 30-40% of all secondaries market activity .
Our conversation covers Nigel's observations on the growing secondaries market, including its history, rationale for LPs and GPs, incentives, critiques, other liquidity options, and advice for both sellers and buyers of GP interests.