This should be an all-time record quarter for the secondary industry. I would estimate close to $10 billion of transactions are likely in the middle of being priced, negotiated, and in the transfer process right now. Continue reading
2014 Secondary Returns: Lower, But Strong
Secondary fund buyers predict a 1.39x gross ROI for 2014 vintage secondary fund transactions. This data is the result of a survey at the 2014 September annual “Secondary Buyer Dinner” that I host each year in New York City. Over 85 professionals attended (all from secondary funds), representing the vast majority of firms in the industry by dollar value. Continue reading
Getting To The Price – Bridging The Gap
All too often, buyers and sellers cannot reach pricing that both are comfortable with. Even a 1% pricing divide can kill a deal. Sometimes to make a deal happen, buyers decide to overpay a bit and hope some unexpected good news comes from a portfolio. Others throw in the towel. Fortunately, there are a few approaches that can help bridge small gaps in pricing. While some of these approaches call for structuring flexibility from the seller, none move the price. Continue reading
Seller Prepare
August is a good time for sellers to comb through their private equity holdings and get internal approvals to move forward with a sale. Continue reading
Gushing Liquidity
Since the first $1B deal in 2000 when Coller and Lexington bought assets off National Westminster, “secondary” volume has been on a steep climb – it exceeded $35B in 2013. With animal spirits high and many expectations of a bigger 2014, what are the events that could contain volume?