Secondaries Investor’s Second Thoughts

This episode first aired on September 5, 2024 The top 50 secondaries investors globally raised $473.8 billion in the five years to the end of 2023, according to this year’s SI 50. That’s a 9 percent increase on last year’s ranking, when $434.5 billion was recorded across a longer counting period of five-and-a-half years. Ardian took the top spot, raising $49.6 billion across the period, followed closely by Blackstone Strategic Partners, which raked in $49.5 billion. Lexington Partners, which holds the record for the largest secondaries fund ever raised, accumulated $36.7 billion in commitments, coming in at number three. Specialisation is driving much of this underlying growth – whether that be through asset class expansion, strategies focused down on LP-leds or GP-led deals, or picking a focus on a market segment with less secondary competition. Evergreen vehicles are also spurring on new avenues for secondaries capital raising. In this episode of Second Thoughts, senior reporter Madeleine Farman and Americas correspondent Hannah Zhang discuss how far these factors have driven growth in the SI 50 and how much room there is to grow further. See the full SI 50 ranking here

This episode first aired on September 23, 2024 and is sponsored by Kirkland & Ellis, LGT Capital Partners and TPG NewQuest The Asia-Pacific secondaries market is one of the most fascinating corners of the global secondaries landscape. This region typically never accounts for more than single-digit figures in terms of global deal volume share – yet some of the most innovative transactions have come out of the APAC market over the years. In this episode of our Decade of Secondaries Investing miniseries, we sit down with Brooke Zhou, partner at LGT Capital Partners; Michelle Cheh, partner at Kirkland & Ellis; and Darren Massara, managing partner at TPG NewQuest, to discuss what types of deals have happened over the last 10 years in the Asia-Pacific region. We explore Renminbi-to-US dollar restructurings and why these have taken a back seat in 2024; why valuations are a more complex issue when it comes to Asia-Pacific GPs than their global counterparts; the different drivers of dealflow in the various markets in APAC and what types of opportunities these are bringing about; and why the regulations affecting GP-led secondaries deals in the US and western Europe have had little impact on APAC secondaries transactions. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.

This episode originally aired on July 8, 2024 and is sponsored by UBS Asset Management and Proskauer Rose The global secondaries market has grown from roughly $47 billion in 2014 to more than $100 billion today. In Europe, fragmentation has led to some significant regional differences. However, it is also clear that many of the trends and dynamics found in the European market are the same as in North America – indeed, some of these developments occurred there first. In the penultimate episode of the Decade of Secondaries Investing podcast miniseries, we sit down with Jochen Mende, an executive director responsible for secondaries transactions at UBS Asset Management, and Bruno Bertrand-Delfau, partner and co-head of secondaries transactions and liquidity solutions at Proskauer Rose. The pair discuss how the European secondaries market has developed over the past decade, how it compares with the North American market and what’s in store for GP-led and LP-led transactions globally. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.

This episode first aired on June 3, 2024 The private equity industry has been pushing for more gender equality among GPs, LPs and intermediaries over the past decade, and the trend is now taking hold in the secondaries market, where diversity issues have historically received less attention. In recent years, women across secondaries have been advocating for empowerment movements and forming support groups, including the Women in Secondaries network launched by Coller Capital and Akin Gump in 2020, as well as the WINS initiative backed in 2021 by five industry professionals representing the buyside, advisory, lending and legal sectors. For those who have made it to senior roles, the priority is to retain, promote and elevate other women. In this eighth episode of the Decade of Secondaries Investing miniseries, Americas correspondent Hannah Zhang sits down with two women pioneers to discuss how the secondaries industry can promote gender equality. They are Francesca Paveri, senior managing director at investment bank Evercore, and Tori Buffery, senior director of secondaries at Nicola Wealth and senior adviser at Morningside Capital. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.

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.

This episode first aired on May 22, 2024 Post-global financial crisis, many institutional investors were forced sellers, offloading private markets exposure at hefty discounts. More than a decade on, these same institutional investors have become repeat sellers on the secondaries market, using the tool as a way to proactively manage their portfolios. How has LP sentiment toward the secondaries market changed, and what is the outlook for this mainstay of the sub-sector? In this sixth episode of the Decade of Secondaries Investing miniseries, Secondaries Investor senior reporter Madeleine Farman sits down with Jeffrey Keay, managing director at HarbourVest Partners, and Adrian Millan, partner at PJT Park Hill. Keay and Millan take a deep dive into LP portfolio management and look at how institutional investors are using secondaries as a tool to manage private markets exposure. We look into the evolution of programmatic secondaries sales and explore the drivers and dynamics behind why some institutional investors are repeat sellers of private markets exposure. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here Read: "Liquidity the primary use case for GPs looking to enter secondaries processes – PJT" Read: "Evercore: distressed sellers 1% of 2013 market volume"

This episode first aired on May 13, 2024 The US Securities and Exchange Commission’s recently passed rules relating to the GP-led secondaries market have put these deals squarely on LPs’ radars. “[These rules] raise the visibility of GP-led transactions to LPs and they signal how important and risky those transactions might be,” Igor Rozenblit – managing partner and founder of governance, risk and regulatory services provider Iron Road Partners and the former private equity expert in the Division of Enforcement of the SEC – told Secondaries Investor. “I wouldn't be surprised for LPs who have already focused on these transactions to focus on them even more… While all the other risks the LPs have always worried about are present, now you've got an additional regulatory risk as an LP that you have to worry about, and LPs are typically very concerned with their exposure to headline risk." In this fifth episode of the Decade of Secondaries Investing podcast miniseries, we sit down with Rozenblit and Isabel Dische, chair of Ropes & Gray’s alternative asset opportunities group, to discuss the secondaries aspects of the private fund advisers rules under the Investment Advisers Act of 1940 and Form PF rules. The pair discuss the evolution of the SEC’s focus on this small sub-asset class within the sprawling private markets landscape, what the regulator is looking out for in these transactions, and how GPs, buyers and advisers can navigate best practice as well as reputational risk that could come with these deals. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here. Read: "SEC votes through rules on GP-led secondaries reporting timeline" Read: "Rubber stamp speeds up market standardisation" Read: "The VSS case and the path toward best practice" Read: "Iron Road Partners: Analyst note on American Infrastructure Funds SEC charge" 

This episode first aired on May 7, 2024 and is sponsored by Ares Management, Dawson Partners and Proskauer Rose The North American secondaries market remains the deepest and most active area for secondaries trading of all the global regions. Around $114 billion-worth of alternatives exposure changed hands last year and North America accounted for around two-thirds of global secondaries trading. In this fourth episode of the Decade of Secondaries Investing miniseries, we sit down with Eddie Keith, a partner and head of infrastructure secondaries in the Ares Secondaries Group; Chris Robinson, partner in the private funds group at Proskauer Rose and co-head of the firm’s secondary transactions and liquidity solutions practice; and Yann Robard, founder and managing partner at Dawson Partners, which recently rebranded from Whitehorse Liquidity Partners. The trio discuss how the North American secondaries market got where it is today, and what’s next for this crucial region. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.

This episode first aired on April 29, 2024 Single-asset continuation funds have surged in popularity in recent years. While the technology isn't new, it took persistence from secondaries market advisers to show both private equity managers and buyers that vehicles associated with the moniker 'zombie funds' could be used to keep hold of star-performing assets. Last year, single-asset continuation fund vehicles took out the largest share of GP-led transactions, accounting for around 39 percent of the $48 billion of volume seen in this part of the market, according to a year-end report from Lazard. There was "some reluctance" from secondaries buyers when conversations around single-asset continuation fund transactions began, Harold Hope, global head of secondaries at Goldman Sachs Asset Management, told Secondaries Investor. "We traditionally bought portfolios. Sometimes they were concentrated portfolios, but they were always portfolios." Today, these vehicles allow Goldman Sachs "to mitigate some of the broader risk that we face when we buy a diversified portfolio," Hope said, adding that the team is "excited about the opportunities" globally. In this third episode of the Decade of Secondaries Investing podcast miniseries to celebrate the 10 years since Secondaries Investor launched, we sit down with Hope and Holcombe Green, global head of Lazard’s private capital advisory business. They discuss how continuation fund technology was developed over time to facilitate single-asset continuation funds, and how large this pocket of the market could become as more capital is allocated to the area. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here.

This episode first aired on April 22, 2024 What's in a name? The process of moving an asset or assets from an existing private markets fund into a separate structure has been happening for some time now – some say as early as 2006 and possibly even prior to that. The so-called 'continuation fund' market was worth around $40 billion last year, according to advisory estimates. Yet, this market was not always seen as a positive and constructive tool with which fund sponsors could deliver liquidity, via an option, while retaining their hold over prized assets. In the second episode of the Decade of Secondaries Investing miniseries to celebrate the 10 years since Secondaries Investor launched, we sit down with Nigel Dawn, head of private capital advisory at investment bank Evercore, and Verdun Perry, global head of Blackstone's Strategic Partners group, to discuss the evolution of the continuation fund market over the past decade and what's in store for how this tool will continue to be used. For full coverage of our Decade of Secondaries Investing series, including all podcast episodes and an interactive timeline, click here. See the PEI 300 here. Read "Single-asset CVs offer steadier returns than buyout funds – Evercore Read "How do continuation funds really perform?" Read "More LPs seek to back secondaries funds"